John Hay leaseholder awaits court order

2 MIN READ

By KIMBERLIE NGABIT-QUITASOL
www.nordis.net

BAGUIO CITY — The resolution of the dispute over the John Hay Special Economic Zone lease is now up to the courts.

Top officials of the Camp John Hay Development Corporation (CJHDevCo) and John Hay Management Corporation (JHMC) in separate interviews said that the case over the 247 hectare lease is now under arbitration. However, while there is no final resolution yet both camps assert control over the contested area.

JHMC President Jamie Agbayani said the Bases Conversion and Development Authority (BCDA) is the government inside the entire John Hay reservation. CJHDevCo Chief Operating Officer Alfredo Yñiguez asserted that based on a writ of injunction issued by the Branch 6 of the Baguio City regional trial court his company is still the lessee of the 247 hectare-leased property.

Last July, several signage announcing that the BCDA rescinded its lease contract with the CJHDevCo over the John Hay Special Economic Zone were placed at the gates of the Camp John Hay. CJHDevCo claims the putting of signage is in violation to the injunction order. BCDA on the other hand claims putting the signage does not affect the arbitration process.

Earlier reports showed that BCDA and JHMC rescinded the lease contract because CJHDevCo committed “material and incurable breaches” of the contract. The CJHDevCo, however, insists that the BCDA cannot unilaterally terminate the lease contract as it is stated in the injunction order.

“The Bases Conversion Development Authority (BCDA), its subsidiaries, officials, employees, agents and other third parties, are restrained, from committing any act tending to wrest control of the leased property, including forceful occupation and/or ejectment from the leased premises and/or award of the rights in the leased property to any new entity,” Yñiguez read from the injunction order.

Unpaid dues

Yñiguez claimed that the CJHDevCo did not pay its dues to the BCDA because the latter failed to give them the necessary permits in order to develop the leased area. He added that they have not been able to generate their projected revenues because the permits issued to them allowed them to develop only 25% of the total leased area.

He stressed that CJHDevCo will not be able to pay its rental without generating enough revenues.

Agbayani claimed that CJHDEvCo’s claims about not being able to generate revenues due to non issuance of permits is just an excuse to evade paying their arrears. She stressed that their arrears has now reached P3.2billion.

It can be recalled that in 2008 CJHDevCo and BCDA signed a Restructuring Memorandum of Agreement (RMOA) whereby the former recognized its then P2.6 billion arrears (1999 to 2008) inclusive of interests. CJHDevCo paid BCDA P100 million right after the signing of the RMOA and later paid a total of P1.8 million by way of dacion en pago.

Agbayani stressed that they issue permits to any locator with in the John Hay special economic zone for as long as they fulfill all the requirements. She challenged the CJHDevCo to identify which permits were not issued to them.

She further pointed out that the Forest Lodge under the management of the CJHDevCo failed to meet national building standards particularly having unsafe fire escapes. She said it is in the interest of public safety that JHMC imposes strict adherence to building standards.

The court is expected to render final decision January next year. # nordis.net