Posted May 17th, 2012 by Manila
Standard Today
The state-run Bases Conversion and
Development Authority has turned down the proposal of Sobrepeña-led Camp John
Hay Development Corp. for a lease payment plan for being grossly
disadvantageous to government.
The company submitted a proposal on
May 14 for a joint venture with BCDA on future projects. This includes the
remaining developable area at the John Hay special economic zone.
CJHDevco proposed to pay P100 million
upon signing of a new agreement, calling it “advance rental.”
BCDA president and chief executive
Arnel Casanova said the proposal seemed to imply that the lessee was up to date
with its payments up to 2011.
The BCDA, in a special board meeting
on Tuesday, rejected the proposal, since it does not show how the P3-billion
arrears will be settled and it seeks to change the bid terms and extend the
contract until 2061.
“This is in violation of the original
lease agreement,” said Casanova.
“The extension they are asking is
contrary to law. Other conditions they are asking are also beyond the control
of BCDA, such as DENR’s [Department of Environment and Natural Resources]
granting of permits,” he said.
The proposal is CJHDevco’s latest
offer in a history of restructuring agreements undertaken to save the project
at the John Hay Special Economic Zone.
“However, it is now evident that this is just another ploy of CJHDevco
to delay or even evade compliance of its obligations,” Casanova said.
Casanova said CJHDevco had already
been given opportunities to settle their arrears as far back as December 2011.
“But instead of paying, they arbitrarily rescind the 2008 restructuring
memorandum of agreement and threw out the BCDA directors from their board,” he
said.
He said there was no indication how
the funds will be sourced to pay the P3-billion obligation and CJHDevco had
been secretive through the years of revenues generated from John Hay.
“Based on the narrative, it even seems
that its arrears are no longer being recognized by CJHDevco,” Casanova said.
“This is farthest from the truth,” he
said, adding that CJHDevco has acknowledged its billions of arrears during the
signing of the 2008 restructuring memorandum of agreement.
The alleged “better revenues for BCDA”
that CJHDevco proposed will come from the proposed new joint venture and
extension of the lease period up to 2061.
Casanova said, however, CJHDevco had a
history of defaulting on its obligations and engaging in fraudulent
transactions of which BCDA was a victim.
(Published in the Manila Standard
Today newspaper on /2012/May/17)
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