BCDA to pursue payment from CJHDevCo

MANILA, Philippines - The Bases Conversion and Development Authority (BCDA) is committed to collect due payments from Camp John Hay Development Corp. (CJHDevCo) chairman Robert Sobrepena after the Department of Justice (DOJ) charged the latter with the crime of estafa.

“We laud the DOJ in this breakthrough decision to make fraudulent businesses accountable to the people and to protect the interest of the public from fraudulent schemes,” BCDA president and chief executive officer Arnel Paciano D. Casanova said in a press conference yesterday.

In a resolution penned by Catherina Isabel C. Caeg, with recommending approval by Senior Deputy State Prosecutor Richard Anthony D. Fadullon and approved by Prosecutor General Claro A. Arellano, the prosecutors found probable cause to charge Sobrepeña with the crime of estafa after avoiding the payment of obligations to the BCDA.

In 1996, the BCDA entered into a lease agreement with CJHDevCo for a portion of the John Hay Special Economic Zone.

Under the agreement, CJHDevCo was authorized to lease, develop, operate and manage the leased property for 25 years or until October 2021.

Locators in the property covered by the lease agreement have to enter into sub-lease agreements with CJHDevCo, which in turn collects the payments for the use of the property.

As such, CJHDevCo should pay an annual rent of P425 million or five percent of gross revenues for the first five years of the lease, whichever is higher, to the BCDA.

While the government was supposed to receive P1.275 billion in rent payments for the years 1998 to 2000, Sobrepena has not given what is due claiming that CJHDevCo suffered financial losses.

CJHDevCo also concealed from the government that it declared cash dividends totalling P928 million in the years 1998 to 2000.

As the CJHDevCo has avoided payment of its obligations, the BCDA terminated the lease agreement in May 2012.

To date, CJHDevCo still has to pay P3 billion to the government.

Casanova said the BCDA’s lawyers are studying what action could be taken by the government following the DOJ decision, noting that the takeover of CJHDevCo is an option available to the state-run firm.

He said the BCDA is also waiting for the decision of the Philippine Dispute Resolution Center for the arbitration of a related case covering the collection of CJHDevCo’s P3 billion obligation to the government.

“We want to follow rule of law… We are very patient with the process,” he said.