The Bases Conversion and Development
Authority welcomed the decision of the Baguio Regional Trial Court ordering
Camp John Hay Development Corp. to post a P736-million bond to put in effect
the writ of preliminary injunction filed by the John Hay lessee.
With the order, the court rejected the
P31-million offer made by CJHDevco to prevent a government takeover of its
leased properties in John Hay, and upheld the original amount of the bond to
protect government’s interest.
BCDA president and chief executive
Arnel Paciano Casanova said the court order confirmed the validity of the
arbitration clause in the contract and directed both parties to observe the
provision. It did not touch on the merits of the case.
“The arbitration clause in our
contract does not in any way impinge upon or prevent the BCDA from exercising
its rights,” Casanova said.
He added there was nothing in the
order of the court that said BCDA could not exercise remedies under the
contract and existing laws.
Casanova said the same court order
also directed CJHDevco to post a P736-million bond to avail of injunctive
relief. Without that, there will be no injunctive relief that would be extended
to CJHDevco, he said.
“What is clear is that this is not a
victory for CJHDevco but a victory of BCDA because they are required to post a
bond,” Casanova said. “Once CJHDevco posts the bond, it will demonstrate that
they have the financial capability to pay its lease obligations.”
CJHDevco’s outstanding obligations to
the government stood at P3 billion as of June 2012. Payment of the bond will
contradict CJHDevco’s earlier claim that financial losses prevented it from
settling its lease obligation.
“We are doubtful that CJHDevco will
post the bond as it would likely betray itself,” Casanova said.
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