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BCDA to CJH locators: Deal directly with us

By Louella D. Desiderio (The Philippine Star) Updated July 20, 2012 12:00 AM

Manila, Philippines - The Bases Conversion and Development Authority (BCDA) is calling on locators of Camp John Hay to send their contracts to the agency so that it may assess and collect payments for the use of the property amid an ongoing row with lessee Camp John Hay Development Corp. (CJHDevCo).

Arnel Paciano Casanova, president and chief executive officer of the BCDA said in a press conference that it wants locators of Camp John Hay, which has contracts with CJHDevCo, to contact the government-owned corporation so that it could review the contracts and collect the payments directly for the use of the property.

“It is imperative for them (locators) to contact the BCDA so that we can look into the contracts they entered into with CJHDevCo and give them proper advice,” he said.

He said the BCDA would also be able to collect the payments directly for the use of the property if the locators gets in touch with them.

The BCDA wants to review contracts of locators with CJHDevCo as it has issued a termination of its lease as well as a notice to vacate the property to CJHDevCo, citing breaches of the contract.

The BCDA entered into a lease agreement with CJHDevCo in 1996 for a portion of the Camp John Hay Special Economic Zone.

Under the agreement, CJHDevCo was authorized to lease, develop, operate and manage the leased property for 25 years or until October 2021.

Locators in the property covered by the lease agreement have to enter into sub-lease agreements with CJHDevCo, which in turn collects the payments for the use of the property.

In May, the BCDA terminated its lease agreement with CJHDevCo as the latter avoided payment of its obligations to the government.

To date, Casanova said, CJHDevCo has to pay P3 billion to the government.

He said locators in the former US camp have to go to the BCDA so that their contracts could be reviewed as some of these had validity periods beyond the 25 year term of the master lease agreement between BCDA and CJHDevCo.

He said the BCDA has been suffering due to CJHDevCo’s continued refusal to settle its payments and fulfill its contractual obligations.

As such, he said, the government is determined to collect the payments due from CJHDevCo and to resolve the matter.

“The board will make sure that the case will be closed. This will not reach until 2016,” he said.

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