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BCDA says Camp John Hay debt hit P2.4 billion

[ ] June 4, 2011

DEBTS of Sobrepena-led Camp John Hay Development Corp. (CJHDevco) zoomed to billions of pesos as of May because of non-payment of rentals.

In a statement, Dean Santiago, Bases Conversion and Development Authority (BCDA) vice president for Business Development and Operations, said CJHDevco’s debt to government hit P2.4 billion for the lease of 247 hectares in the John Hay Special Economic Zone (JHSEZ) in Baguio City.

On top of the P2.4 billion in arrears, CJHDevco again failed to meet the May 31 deadline to pay its current lease rentals amounting to P272 million, Santiago said.

He said the P272 million represents CJHDevco’s rentals from December 2009 to March 2011 based on the Restructured Memorandum of Agreement (RMOA) forged on July 1, 2008.

By end-June 2011, he CJHDevco’s arrears shall have increased to P381.8 million, broken down into P309.68 million in rentals from December 2009 up to June 2011, and P72.18 million in interest on past due obligations, Santiago said.

CJHDevco owes government a total of P2.672 billion.

Santiago said CJHDevco has acknowledged its indebtedness to BCDA when it signed the RMOA.

Under Section 3 of the RMOA, the “lessee hereby acknowledges its obligations under the 19 October 1996 Lease Agreement, the 14 July 2000 MOA and the 18 July 2003 MOA for the years 1999 to 30 June 2008 amounting to P2,686,481,644 inclusive of interest.”

“This belies the recent statement of CJHDevco denying their arrears to BCDA. It is very clear in the RMOA that they acknowledged their arrears,” Santiago said.

Darwin G. Amojelar

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