BCDA seriously mulls takeover of Camp John Hay

The Bases Conversion and Development Authority (BCDA) said yesterday that it is seriously considering the takeover of Camp John Hay from the beleaguered Camp John Hay Development Corp. (CJHDevco) amid signs that the latter would not settle some P2.2 billion in rental arrears.

BCDA, in a statement, said it is finalizing its legal options regarding an apparent refusal by the Sobrepena-led group to settle its debt.

BCDA earlier said it has informed CJHDevco that the 30-day notice for the payment of the P1.2 billion portion of the total arrears has lapsed.

The notice was served on March 30 this year, BCDA said.

Lawyer Lyssa Pagano-Calde, spokesperson of BCDA subsidiary John Hay Management Corp., pointed out that a recent petition for arbitration filed by CJHDevco before the Philippine Dispute Resolution Center Inc. (PDRCI), a private organization, "may be the final indication that it cannot settle the P 2.2 billion debt."

PDRCI was formed in 1996 by the arbitration committee of the Philippine Chamber of Commerce and Industry to promote the use of arbitration to resolve commercial disputes.

BCDA earlier expressed fears that CJHDevco might be evading the payment of the debt by invoking a Supreme Court ruling on tax incentives.

Pagano-Calde said some P300 million in Baguio City development funding is "trapped in the P2.2 billion debt."

Pagano-Calde said the possible take over of John Hay "may have become a necessity in order to protect the assets of the facility in the interest of Baguio City and the National Government."

She described the CJHDevco petition "as a pro-forma move aimed at further clouding the non-payment issue."

CJHDevco, Pagano-Calde said, "must have assessed that it is cheaper to pursue a legal move before this private organization rather than pay its debt."

She doubts though the seriousness of the CJHDevco move to file the petition before the PDRCI.

Pagano-Calde chided CJHDevco lawyers "for misleading the public about the nature of the petition before the PDRCI." She clarified that the petition "is not a legal suit."

PDRCI does not have judicial authority like a regular court, she pointed out.

PDRCI cannot and does not decide on cases, Pagano-Calde revealed.

PDRCI’s function is merely to bring parties together, on a purely voluntary basis, so they can dialogue, she explained.

Pagano-Calde said "CJHDevco lawyers must end the pattern of misleading the public in the John Hay issue." The misrepresentation about their move before the PDRCI has unmasked the deception strategy for good, she said.

All that CJHDevco is saying is that they are asking the PDRCI to tell BCDA to sit down with them to dialogue and look for solutions to the issue, she said.

Pagano-Calde said the petition before the PDRCI "is extremely unnecessary since BCDA has always been open to the recommendations of the Sobrepeña group on how they wish to pay the P2.2 billion arrears."

Unfortunately, their offer to reduce the debt from P2.2 billion to a measly P192,000 is definitely unacceptable, she added.

Pagano-Calde also confirmed that BCDA is finalizing its legal options to protect the government’s interest on the P2.2 billion arrears of CJHDevCo.

"When we exercise our legal options, it will be before a real court," she warned.

Earlier, CJHDevCo had said it is prepared to rescind its contract with the BCDA if the BCDA continues to refuse to abide by its contractual obligations with CJHDevCo.