CJHDevCo running arrears since 1998, says BCDA

The Bases Conversion and Development Authority (BCDA) said yesterday that the Fil-Estate backed Camp John Hay Development Corp. (CJHDevCo) has been incurring arrears in its annual rental fees since 1998.

This is contrary to recent claims by CJHDevCo lawyers that it has been in default only after a Supreme Court ruling on tax incentives was issued this year.

BCDA subsidiary John Hay Management Corp. spokesperson Lyssa Pagano-Calde disclosed that CJHDevCo twice entered into a Memoranda of Agreement (MOA) with the government precisely to address its arrears.

"CJHDevCo formally and officially acknowledged in the years 2000 and 2003 that it was delayed in its payments," Pagano-Calde said.

This is backed up by the two MOAs which they signed with BCDA and which document their arrears.

CJHDevCo made only partial payments in 2000 and 2003 for its 1999 rentals, but never paid government any single centavo after that, Pagamo-Calde said.

BCDA decried as "an outright misrepresentation and deception" the claims by CJHDevCo that it was current with its rental payments until the Supreme Court decision was released in 2003.

As early as 1998, CJHDevCo already requested for the deferment of its second annual lease rental which was due on Dec. 31 of that year, Pagano-Calde pointed out.

CJHDevCo had then used the excuse of the Asian economic crisis, the El Niño and the La Niña phenomena as reasons for its inability to meet the scheduled payment, she added.

CJHDevCo made another request for the deferment of the lease payments in January and March of 2002 citing as excuses the economic crisis, the alleged poor state of local and international tourism and the recession of the real estate market, Pagano-Calde explained.

She said BCDA rejected CJHDevCo’s excuses but sought to find acceptable terms of settlement, she added.

BCDA, however, felt there was no real solution to the huge arrears so it called for the termination of the lease agreement with the developer in February 2003.

Pagano-Calde said CJHDevCo was able to submit an improved settlement offer which BCDA "found acceptable" and which staved off a take-over during that year.

The fact that the Fil-Estate group submitted an improved offer in 2003 shows the huge arrears existed way before the Supreme Court decision of this year, and that they acknowledged their arrears, Pagano-Calde pointed out, adding that the Supreme Court decision is, therefore, clearly a belated and convenient excuse to muddle the non-payment issue.

Pagano-Calde urged CJHDevCo "to stop its tactic of misleading the public since the deception is bound to be uncovered."

The whole issue on their P2.2 billion arrears is documented, she said.

Pagano-Calde also called on CJHDevCo to "provide the government and the public with clear indications concerning its ability and willingness to settle its arrears instead of crafting belated excuses to evade its debt."

Meanwhile, CJHDevCo gave its assurance last week that it will settle all of its outstanding rental arrears with the government.