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BCDA terminates CJHDevco contract

(The Philippine Star) Updated May 17, 2012 12:00 AM

MANILA, Philippines - The state-owned Bases Conversion and Development Authority (BCDA) has terminated the lease agreement with its non-paying lessee, the Camp John Hay Development Corp. (CJHDevco), and ordered it to vacate John Hay because of the lessee’s “material and incurable breaches” of its contractual obligations.

BCDA also demanded that the Sobrepena-led CJHDevco pay its outstanding rentals and restructured obligations in the total amount of P3,007,712,654.00 as of end-April 2012.

The termination notice was served to CJHDevco on May 16 in its corporate offices in the Camp John Hay Special Economic Zone in Baguio City, following a special meeting of the BCDA board last May 15 at the state-firm’s headquarters in Taguig City.

The notice, signed by BCDA president and chief executive officer Arnel Casanova, was addressed to CJHDevco chief executive officer Robert John Sobrepena and president Ferdinand Santos.

The notice stated that BCDA is terminating the lease agreement dated Oct. 19, 1996 and the restructuring memorandum of agreement (RMOA) dated July 1, 2008 due to CJHDevco’s material and incurable breaches.

Eight breaches of CJHDevco were enumerated, which include the following: CJHDevco’s failure to pay the annual rent due government for many years; failure to open an escrow account and deposit 50 percent of the Common Usage Services Assessment; fraudulent double-sale of a property given as payment to BCDA; violation of fire and safety laws in the Camp John Hay Suites; unlawful squatting of CJHDevco’s security agency; subcontracting of the water operations and distribution without BCDA’s consent; violations on safety, health and environmental regulations; and CJHDevco’s gross misrepresentation of its financial standing.

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