Higher bond sought for CJHDevco

MANILA, Philippines - The Bases Conversion and Development Authority (BCDA) has asked the Regional Trial Court in Baguio to increase the amount of bond to be posted by its former lessee Camp John Hay Development Corporation (CJHDevco) to cover its total obligations to the government.

Before its lease contract was terminated by BCDA, CJHDevco had sought a preliminary injunction from the court to stop BCDA from taking over its lease property. The court, however, ordered CJHDevco to post a P736-million bond for the writ of injunction to work in its favor.

CJHDevco’s total arrears to BCDA stands at P3.077 billion.

In a statement, the BCDA said that it is moving to increase the bond to P3.2 billion.

The amount includes CJHDevco’s rental arrears to government, plus P162 million as one-year rent payment for the duration of the injunction case.

“The probable damages that the injunction will cause to government will be covered by the bond. This will ensure that the government justly gets what is due it,” said BCDA president Arnel Paciano D. Casanova, adding that the posting of the bond with that amount would show that CJHDevco is acting in good faith as it claims.

CJHDevco filed the injunction case after it unilaterally rescinded the Restructuring Memorandum of Agreement with BCDA.

“The rescission was seen as CJHDevco’s obvious ploy to evade paying the billions of pesos it owes the public. Justice has to be served in John Hay if the injunction is to take effect. Let government’s interest be covered by that bond and let CJHDevco show good faith by at least putting up the bond prescribed by the court,” Casanova said.

The court set the oral arguments for the motion on June 8, 2012.