DOJ files malversation raps vs Camp John Hay execs

52 counts over non-remittance of profits, properties 

BAGUIO CITY -- The Bases Conversion and Development Authority (BCDA) lauded the decision of the Department of Justice (DOJ) to file malversation charges against officials of the Camp John Hay Development Corp.(CJHDevCo).

Led by its chairman and CEO Robert John L. Sobrepeña, the CJHDevCo was charged for allegedly refusing to account for the 26 BCDA-owned hotel units located here in Camp John Hay Manor and Camp John Hay Suites and retaining the earnings generated from its operations.

In a resolution dated April 1, 2013, the DOJ said: “In the instantcase, respondents' delayed remittance of the rental income of BCDA despite repeated demands did not extinguish their criminal liability for malversation of public funds. Again, it should be noted that therespondents did not provide any sufficient explanation for the said remittance. Thus, they are presumed to have malversed the rents due toBCDA for the period mentioned above under leaseback agreement."

“This is a victory for the country under the President’s leadership and his ‘Daang Matuwid’ policy. We welcome the decision of the DOJ,which is a first step in getting back and recovering what isrightfully government property and revenues,” BCDA president ArnelPaciano D. Casanova said.

Other CJHDevCo officials to be charged by the DOJ of malversation areFerdinand T. Santos, Alfredo R. Yñiguez III, and Emily Roces-Falco.

On Aug. 15, 2012, the BCDA filed beforethe Department of Justice (DOJ) filed 52 counts of malversation against theBoard of Directors and officials of CJHDevCo and its subsidiary, Camp John Hay Hotel Corporation (CJH Hotels).

The 22-page complaint stated that the CJHDevCo directors and officers,even after the lawful demand of the BCDA, refused to return the public properties to the government.

These properties are 16 units of the CJH Manor Hotel and 10 units of the CJH Suites Hotel which have a total value of P121 million.

The hotel units were payments in kind or dacion en pago made to BCDA in 2008, as partial settlement of CJHDevCo’s unpaid rental obligations.

The complaint further stated that CJHDevCo continues to earn from these units but refused to provide the liquidation of publicfunds—revenues that it earned from the use and lease of the 26 units.

“We want to make unscrupulous businesses accountable for theiractions,” Casanova said.  “The era of using political connectionsfor business gain is over. This ushers an era of ethical business based on a level playing field that will open opportunities forb usinesses that practice good governance and transparency.”

Casanova said filing of charges was welcome news for alllaw-abiding businesses.Aside from the 26 units, CJHDevCo also owes the BCDA over P3 billionin lease payments in the John Hay Special Economic Zone (JHSEZ).