BCDA asserts rights on Camp John Hay

MANILA, Philippines - State-owned Bases Conversion and Development Authority (BCDA) continues to assert its rights over an economic zone in Baguio City, warning the public not to transact any business with the Sobrepeña-led Camp John Hay Development Corp. (CJH DevCo) in line with the Camp John Hay case.

BCDA said CJH DevCo’s lease contract in the John Hay Special Economic Zone or Camp John Hay in Baguio City has already been cancelled since February, making any transaction forged with the company questionable.

“It has come to the information of the BCDA that CJH DevCo continues to impose assessments and charges on all activities within Camp John Hay even after the final award rescinding its lease,” BCDA said.

BCDA said the lease agreement of CJH DevCo had been rescinded by virtue of the final award rendered in the arbitration under the Philippine Dispute Resolution Center Inc. The final award was also confirmed by Branch 6 of the Regional Trial Court of Baguio.

“As a result of the rescission of the lease agreement, CJH DevCo has been divested of its authority to manage and administer the John Hay Special Economic Zone,” BCDA said.

In 67-page decision, the Court of Appeals modified the final award declaring CJH DevCo’s obligation to vacate and deliver the leased property to BCDA as dependent on agency’s payment of P1.4 billion, which effectively rendered the arbitral award empty.

The BCDA, however, stood firm on its claim that CJH DevCo has no authority to operate in the economic zone, saying that there is no longer an existing contract between both parties and that CJH DevCo has not been issued a permit by the John Hay Management Corp.

The BCDA has already asked the Supreme Court (SC) to review the CA decision which reverses the order of an arbitration body directing CJH DevCo to vacate Camp John Hay.