CJHDevCo denies claims of squatting in John Hay

By Dexter A. See

BAGUIO CITY -- The Camp John Hay Development Corporation denied claims by the Bases Conversion Development Authority that it had illegally occupied a small portion of the former US recreational facility and described the purported filing of a criminal case against its officials as part of the strong arm tactics, including continued harassment and intimidation being employed by the state-run firm to justify an illegal takeover.

Alfredo Yniguez III, CJHDevCo executive vice president and chief executive officer, said published accusations by BCDA that the Sobrepena-owned company illegally occupied some 600 square meters of prime land near a sewage treatment plant (STP-6) within the 247-hectare John Hay Special Economic Zone are untrue.

“As far as we are concerned, there is no squatting here,” Yniguez pointed out, saying the security facilities of War Bird Security Agency BCDA claimed to have been illegally constructed actually falls within the 247-hectare leased area that CJH Devco has been developing over the past 16 years.

“We deplore the strong-arm tactics being resorted to by BCDA in its bid to justify a takeover of John Hay,” Yniguez said, adding that the filing of the case before the Department of Justice is just the latest in a series of actions aimed at seizing control of CJH Devco projects that include the popular Camp John Hay Manor Hotel and the Camp John Hay Golf Club.

He said the filing of the case for alleged violation of Section 27 of the Urban Housing Development Act of 1992 was an offshoot of the company’s recent success in securing a temporary restraining order (TRO) from a Baguio court from any takeover by the state-run firm, BCDA. Yniguez said CJH Devco was able to secure the TRO after providing evidence that BCDA was amassing security forces in preparation for an illegal takeover.

“The motives of BCDA in this latest attack on CJH Devco’s security personnel are clear,” Yniguez said. “BCDA seeks to deplete the security forces of CJH Devco to forcibly and illegally take over John Hay.”

Responding to BCDA’s latest statement, Yniguez said what its service provider, Warbird Security and Investigation Agency, actually erected were outposts and other temporary security facilities that were primarily intended to secure the Camp John Hay Manor and other vital facilities within the CJH Devco area such as sewage treatment plant (STP- 6) and the popular Eco-Trail area.

“Considering the importance of the sewage treatment plant and the fact that the Eco-Trail is a fairly isolated area, security facilities were erected there to help secure not only that facility but also the many John Hay visitors who walk through the Eco-Trail every day,” Yniguez said.

These latest attempts by BCDA to take out CJH Devco’s security contractor, Warbird, in the 247-hectare leased area will result in the loss of CJH Devco’s security controls and safety measures which threatens the safety and security not only for 2,600 employees working within the camp but also for thousands of tourists and visitors who frequent the camp on a daily basis.

“Setting up temporary security facilities in strategic locations within an area being secured is a standard practice in the security industry,” he said, adding that contrary to BCDA claims, there were neither families nor roosters in the temporary facilities.

Yniguez also scored BCDA for using the squatting issue as a reason in not renewing the business permit of Warbird, which has been its contracted security provider since Camp John Hay was turned over by BCDA to CJH Devco in 1996.

“This denial only this instance by BCDA’s subsidiary, John Hay Management Corporation (JHMC), of the permit-to-operate to Warbird clearly shows BCDA’s harassment of CJH Devco’s security personnel with a goal of depleting the security personnel of CJH Devco to afford BCDA’s hidden agenda of an illegal takeover of John Hay,” Yniguez said.

Yniguez said BCDA’s bid remains unsuccessful as CJH Devco was able to renew and obtain a business permit for Warbird from the Baguio City Hall.

The latest controversy is part of the ongoing dispute between CJH Devco and BCDA over the suspension of rental payments to BCDA resulting from BCDA’s continued breaches, the latest of which is their inability to comply with a specific guaranty in the July 2008 Restructuring Memorandum of Agreement (RMOA) to set-up a functioning One Stop Action Center (OSAC) to issue permits within a ’30-day period’.

Prior to this, a major breach occurred in 2003 when a Supreme Court decision took away Camp John Hay's Special Economic Zone tax benefits and fiscal incentives, a prime warranty of BCDA during the bidding process, which was eventually restored by Congress after a 5-year impasse, but which, in turn, significantly stalled the company’s development plans.

After being awarded the right to develop the camp in 1996, BCDA initially failed to deliver the Environmental Clearance Certificate (ECC) and 32 hectares of the leased area, which took almost 4 years to resolve. Altogether, CJH Devco lost 12 years and billions in revenues due to BCDA’s series of breaches.