BCDA: Developer's offer violates bidding laws

MANILA, Philippines - The Bases Conversion and Development Authority (BCDA) took exception to a claim of the Camp John Hay Development Corp. (CJHDevco) that it has blocked its proposals which promises higher revenues for the state-run firm.

“They said they offered to pay government P8.5 billion. That’s a complete lie,” BCDA president and CEO Arnel Paciano Casanova said in a statement.

He said the BCDA never received such an upfront offer to pay the amount.

The offer of CJHDevco, which came a day before BCDA’s termination of its lease agreement, did not address the question of its P3-billion arrears to the government and sought to drastically change the terms of the bid-out contract – an act that was declared illegal by the Supreme Court in 2003, he said. 

“What CJHDevco conveniently forgot to reveal to the public was that its offer was to write off its P3-billion debt to the Filipino people, increase the term of the original 25-year contract to 65 years, and change the contract from a lease to a joint venture agreement,” Casanova said.

“The BCDA Board, as stewards of public property, exercised extraordinary diligence in rejecting such ridiculous proposal and unanimously voted to refuse the offer since it seeks to drastically change the awarded contract and violates the laws on public bidding. The BCDA Board has no choice but to reject such patently illegal offer,” he said.

Meanwhile, apart from graft and damage suits, Casanova may be facing another complaint stemming from the BCDA’s legal tussle with CJHDevCo.

This time, CJHDevCo counsel and former solicitor general Frank Chavez said they are eyeing a possible disbarment case against Casanova for his supposed misleading statement over the P8.5-billion offered by CJHDevCo in lease rental payments that he rejected last year.

Chavez specifically took exception to Casanova’s claim that the offer violated bidding laws.

Chavez said Casanova needs to re-examine his lawyer’s oath which requires a lawyer “not to wittingly or willingly promote or sue any groundless false or unlawful suit or give aid nor consent to the same.”