Napoles, Cojuancos in John Hay takeover mess

BEHIND THE SCENES

Alfred P. Dizon

BAGUIO CITY – The name of Janet Lim Napoles, who was involved in several fund anomalies worth billions in pork barrel funds with corrupt government officials, once again cropped up in the legal battle between the Bases Conversion Development Authority and Camp John Hay Development Corp. 

This, after the Court of Appeals’ special 11th division granted petition for review filed by the state-owned BCDA, reversing and setting aside the April 27, 2012 decision of branch 6 of the Baguio City Regional Trial Court.

The CA decision lifted the writ of preliminary injunction issued by the Baguio Regional Trial Court to the CJHDC led by Robert John Sobrepena in relation to the latter’s P3 billion obligation to the BCDA representing unpaid lease rentals over the operation of the 247-hectare John Hay Special Economic Zone (JHSEZ).

The CA decision was penned by Associate Justice Victoria A. Paredes, with Associate Justices Isaias P. Dicdican and Agnes Reyes-Carpio concurring with the decision.

The CJHDC had not paid lease rentals to the BCDA since 1998 for a 247-hectare property inside the John Hay Special Economic Zone.

Its arrears ballooned to P3.4 billion, 25 percent of which was for the local government of Baguio pursuant to a 1996 memorandum of agreement entered into by BCDA and the private developer, formerly Fil-Estate Penta Capital Consortium.

Meanwhile, the BCDA filed an urgent manifestation with Branch 6 of Baguio RTC last week, calling attention to “invalid” P736.328-million bond posted by CJHDC.

The posting of bonds is required in most huge transactions with government to ensure the company fulfils its obligations with concerned government agencies and host local governments.

Sobrepena’s CJH DC secured the bond from First Integrated Bonding and Insurance Corp. which is reportedly not accredited by the Insurance Commission or the Supreme Court and is not authorized to transact business with any court in the country.

Based on records from the Securities and Exchange Commission, First Integrated Bonding and Insurance Corp. is 10-percent owned by Janet Lim Napoles who is heavily associated with the pork barrel scam.

As of the end of 2013, the company’s assets amounted to only P307.555 million, less than half of the amount of the bond required.

Alfredo Yñguez, CJHDevCO executive vice president, said the corporation appealed the CA ruling, saying it was part of the BCDA’s ploy to enforce their long-time decision to “take over the operation of the special economic zone from them and award the same to another interested real estate developer.

“They could not just unilaterally take over the special economic zone because they still have to secure a writ of execution from the CA if the decision has become final and executor. What I know is that we will still have to undergo several hearings,” Yñiguez said.

He added the earlier bonding company, Liberty Insurance Corporation, which posted the CJHDevCo bond, was the one duly accredited by the Baguio RTC and SC at the time of its issuance in late 2011.

The CJHDevCo official added the company is owned by the Cojuangcos, who are related to President Benigno Simeon C. Aquino, before it was transferred to First Insurance Bonding Corporation some two years ago.

“We were not aware that the minority shareholder of First Insurance Bonding Corporation was the controversial Janet Lim-Napoles and we have nothing to do about the pork barrel scam,” he said.

Lawyer Arnel Paciano Casanova, BCDA president and chief executive officer, welcomed the CA ruling reversing and dissolving the writ of preliminary injunction issued by the lower court, saying it was partial victory on their part and they will contest every legal move of the private developer to delay implementation of their earlier notice of termination.