According to CJHDevCo spokesperson lawyer Gina Alvarez, "unless BCDA is ready to pay us P10.9 billion for actual damages and lost profits it cannot mount a takeover."
Alvarez said that "instead of threatening to do an illegal takeover, BCDA should concentrate on addressing the legal and financial impact of the Supreme Court decision nullifying the John Hay SEZ incentives."
"All BCDA has done so far was to sidestep the tax issue," Alvarez said.
She added that "instead of going on a media blitz against CJHDevCo, it should heed the call of CJHDevCo and its locators, who in good faith invested in Camp John Hay, to honor its guarantees under the lease contract."
Last week, CJHDevCo filed an arbitration suit against BCDA.
CJHDevCo is seeking arbitration following BCDA’s continued refusal to abide by the express terms of the Lease Agreement, particularly Article XV, Section 1, which provides for the convening of a joint committee as a dispute settlement mechanism and to honor the tax and duty exemptions within the John Hay SEZ.
The tax incentives, CJHDevCO insists, is a material consideration to the Lease Agreement which was guaranteed and assured by BCDA to all bid participants in 1995 and was a primary motivation for developer CJHDevCo and its financial partners to participate in the bidding and enter into the lease contract.
"The Lease Agreement expressly provides that if the joint committee fails, the dispute should be referred to arbitration. We are only following the letter and spirit of the contract when we filed for arbitration. BCDA should be advised to do the same," said CJHDevCo’s legal counsel.
CJHDevCo believes that the BCDA subsidiary, John Hay Management Corp. plans to ignore the arbitration.
"It is inconceivable that BCDA, after it breaches its warranty on the tax and duty exemptions within the John Hay SEZ, now has the temerity to threaten an illegal take over," CJHDevCo complained.
CJHDevCo lamented what it perceived to be BCDA’s attempt not to honor its contracts.
"What message is our government sending to investors in this country?" CJHDevCo asked. – Marianne Go