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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