Lawmaker seeks probe of Camp John Hay mess

Sublessees caught in middle of BCDA, developer fight 

BAGUIO CITY - A lawmaker from Pampanga is seeking an inquiry into the mess at Camp John Hay in Baguio City involving its private developer, the state-run Bases Conversion and Development Authority and the locators.

In Resolution No. 2107, Rep. JosellerGuiao said hundreds of investors and locators at the former US military facility are caught in the fight between the BCDA and the Camp John Hay Development Corp.

Guiao said an arbitration tribunal has ordered the CJHDevCo to vacate the facility, while the BCDA has been directed to reimburse the developer with P1.4 billion in rental payments for the facility.

The state-run agency has been trying to collect more than P3 billion from the developer in back rentals.

Guiao said the developer leased the units for 50 years, when its contract with BCDA was good only for 25 years.

The BCDA Friday slammed the Sobrepeña-led CJHDevCo for” misleading the Court of Appeals to issue temporary restraining order that put on hold a portion of   writ of execution that orderedCJHDevCo and all persons claiming rights under them or sublessees to peacefully vacate Camp John Hay.”

The Office of the Executive Clerk of Court and Ex-Officio Sheriff of Baguio is in charge of implementing the writ of execution.

"CJHDevCo blatantly misled the Court of Appeals of various lies that formed the very foundation for the issuance of TRO," BCDA President and CEO ArnelPaciano D.  Casanova said.

 He said CJHDevCo misled the CA to believe that there was going to be violence following the end of the 30-day notice to vacate. "I'm very sure that the sheriff of Baguio who is implementing the writ of execution and notice to vacateand  assisted by the Philippine National Police , will not start any violence. So does that mean that the Sobrepeña-led CJHDevCo has threatened to provoke violence against the Baguio sheriff?" Casanova said.

Casanova addedCJHDevCo mislead the CA by saying the  P1.42 billion   is advance rental payments when in fact it is a refund that  should be paid by CJHDevCo to sublessees.

 The Arbitral Tribunal of the Philippine Dispute Resolution Center, Inc. came out with its final award that ordered CJHDevCo to vacate Camp John Hay and promptly deliver the leased property, inclusive of all new constructions and permanent improvements to the BCDA. 

The final award also ordered the BCDA to return to CJHDevCo the amount of P1.42-B which the CJHDevCo paid to the BCDA as lease payments.

BCDA complied with the writ of execution on the P1.42 billion that is now in an escrow account under the direct control of the  Baguio Court.

Casanova said from day one of its operations,  theSobrepeña-led CJHDevCo may have  been misleading people  to avoid accountability to the sublessees.

“CJHDevCo has misled their sublessees by selling them 50-year lease hold rights when in fact the primary or main lease between BCDA and CJHDevCo is only 25 years renewable for another 25 years. The 25 year renewal is not a vested right but merely an option. The renewal is not automatic but subject to negotiations by the parties upon exercise of the option. CJHDevCo collected payments for 50 year leases.

“The Sobrepena-led CJHDevCo would like to get hold of the P1.42 billion and at the same time run away from their responsibility to return  the lease payments its sublessees have already  paid.”

 Casanova said that the sublessees should now seriously claim from the P1.42 billion that the BCDA is returning to CJHDevCo.

 “The only way for the CJHDevCo’s victims to recover their investments and protect their interests is to lay claim to the P1.42-B that the BCDA deposited  in the court,” Casanova said.

 Casanova also disclosed that CJHDevco has no authority and license to sell condominium/hotel, lots or house and lots as they are not authorized by the Housing and Land Use Regulatory Board (HLURB).  “They misled third parties by making it appear that they are allowed to sell hotel units and house and lot within the leased area, when in truth it is just a sublease.”

“At present, CJHDevCo has no authority to operate in the Camp John Hay because there is no longer an existing contract between BCDA and CJHDevCo and that CJHDevCohas  not been issued a permit by the John Hay Management Corporation,” Casanova said.

According to him, “CJHDevCo's  misleading the CA is  a violation of the rule of law, not to mention a desperate act to delay the inevitable at the expense of sublessees and the Filipino people.”

 He said it was CJHDevCo who compelled the BCDA to undergo into the arbitration process. The CJHDevCo filed for a petition to confirm the final award of the PDRCI Arbitral Tribunal before the Baguio RTC. 

Casanova added the court confirmed the final award  that  paved the way for the  writ of execution  issued by  Judge Cecilia Corazon Dulay-Archog and its eventual  implementation by the Baguio Sheriff. All of a sudden, CJHDevCo  would want to defy the court decision that it had asked for.

"By misleading the CA to issue a TRO, CJHDevCo has shown its defiance and contempt towards the rule of law,"  Casanovasaid.

 Casanova said the BCDA will exhaust all legal remedies, adding it had been consistent in respecting the rule of law. "Our previous actions clearly show that the BCDA has abided with the orders of the judge." He added that CJHDevCo should do the same.

 The BCDA also expressed its concern with the way CJHDevCowas trying to delay the inevitable at the expense of some sublessees whom they have reportedly been led to believe that the notice to vacate was not directed at sublessees.

“It  was very clear during the pre-execution conference held on  April 17, 2015 between BCDA and CJHDevCo in the presence of Judge Archog of the Baguio RTC Branch 6 that “third party investors  or vested right holders” which the court referred to as sublessees are covered by the Final Award issued by the Philippine Dispute Resolution Center, Inc,” he said.

Camp John Hay sublessees were advised to consult the BCDA and JHMC at: Baguio Help Desk: (074) 423-5403, (074) 422-1963 and at jhmc@jhmc.com.ph;  Manila Help Desk: (02) 575-1700 local 1728 and 1734 and at johnhay@bcda.gov.ph. 

 Casanova said the priority of the sublessees is to protect their investment and not fight the losing battle of CJHDevCo.

 Quite a number of sublessees have already signed up with the BCDA guaranteeing the continuity of their business operation or lease including former Senate President  ManuelVillar and Congressman Eric Singson.

 Last April 20, 2015, the Sheriff of Baguio started serving the notice to vacate to CJHDevCo and all persons claiming rights under CJHDevCo. The latter refers to sublessees.  CJHDevCo and the sublessees were given 30 days to peacefully and orderly vacate Camp John Hay. The 30 days ended on May 20, 2015.

Based on the notice to vacate, and prior to the TRO, following the end of the 30-day notice, the Baguio sheriff is compelled to forcibly evict those who have not vacated. – With a report from Melody Brawner