John Hay developer denies rental arrears with BCDA

MANILA, Philippines - The legal battle involving the government’s takeover of Camp John Hay properties in Baguio City continued yesterday as its developer denied a claim of the Bases Conversion Development Authority (BCDA) of multibillion-peso unpaid rentals.

The Sobrepeña-led Camp John Hay Development Corp. (CJHDevCo) dismissed the claim as part of a “smear campaign,” as it demanded BCDA officials to instead answer the cases in courts and before the Philippine Dispute Resolution Center for “breaches and failures” of contract.

CJHDevCo chief operating officer Alfredo Yniguez, in a statement sent to the media through their lawyers, said their firm has not incurred unpaid rental obligations to BCDA.

“CJHDevCo is current in its rental obligations to BCDA. We dispute the reference by BCDA to P2.9-billion rentals from 2003 to 2008 because BCDA was in default during this period,” he said.

“BCDA also failed its warranties of giving Special Economic Zone Benefits to CJHDevCo from 2003 to 2007 and its ‘30-day guaranty’ on issuance of all local and national permits for CJHDevCo projects from 2008 onwards,” he added.

He said CJHDevCo rental payments, to date, have amounted to about P1.44 billion.

“These payments were made despite the five-year impasse brought about by the Supreme Court decision in 2003 and the culpable delay in the issuance of building and occupancy permits which ought to have supplied CJHDevCo with the lifeblood to pay the very rentals in issue,” he said.

Yniguez urged BCDA officials to settle the issues in legal venues.

“The actions of CJHDevCo stand on solid grounds. CJHDevCo calls on BCDA to meet the issues head-to-head before the courts and arbitration body in accordance with existing agreements. (But) time and time again, BCDA has refused to submit itself for arbitration,” he said.