By Louella D. Desiderio (The
Philippine Star) | Updated April 6, 2015 - 12:00am
MANILA, Philippines - Sobrepeña-led
Camp John Hay Development Corp. (CJHDevCo.) may face a class suit from
sub-lessees of Camp John Hay if it fails to return their investment, the Bases
Conversion and Development Authority (BCDA) said.
BCDA president and chief executive
officer Arnel Paciano Casanova said in a statement this is the mostly likely
scenario if CJHDevCo. would not reimburse the sub-lessees for the unused portion
of their contract.
In February, the arbitration committee
under the Philippine Dispute Resolution Center Inc. (PDRCI) ordered CJHDevCo.
to vacate the Camp John Hay and return the leased property, inclusive of all
new constructions and permanent improvements to the BCDA.
The BCDA, meanwhile, has been asked to
return to CJHDevCo. lease payments worth P1.42 billion.
The PDRCI issued the decision
following arbitration proceedings ordered by the Baguio Regional Trial Court as
the BCDA decided to terminate its lease agreement with CJHDevCo. for avoiding
payment of obligations to the government.
While the lease agreement signed for a
portion of John Hay Special Economic Zone by the two parties in 1996 was for 25
years, CJHDevCo. sold 50-year leases to sub-lessees.
Peter Paul Andrew Flores, head for
legal services at BCDA said the PDRCI’s order is binding and covers CJHDevCo.’s subleases.
Contrary to claims of CJHDevCo. that
the subleases should be honored by the BCDA, he said the state-run firm is not
privy to these contracts.
The BCDA through the John Hay Management
Corp. (JHMC) has requested copies of all contracts and other relevant documents
related to the development of all residential homes, estates and condotels
within the leased area from CJHDevCo. since 2011 but the firm has refused to
provide these documents.
As CJHDevCo. concealed the contracts
of subleases of Camp John Hay to JHMC and BCDA, it is liable to the
sub-lessees.
To help protect the rights and
interests of Camp John Hay’s sub-lessees, the BCDA has set up a help desk which
can provide legal counsel.
“The last thing we want to happen is
for their contracts to be a worthless piece of paper like what happened with
the College Assurance Plan (CAP),” Casanova said.
CJHDevCo. is chaired by Robert John
Sobrepeña, who also owns and manages pre-need company CAP and Metro Rail
Transit Development Corp.
Created by Republic Act 7227, the
BCDA’s mandate is to turn former US military bases into alternative productive
civilian use.
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