BAGUIO INJUNCTION AGAINST BCDA STAYS

Camp John Hay Development Corporation (CJH DevCo) has filed an injunction bond amounting to P736,328,465.50 with the Regional Trial Court Branch 6 of Baguio City. This was in fulfillment of the bond requirement attached to the Writ of Preliminary Injunction that the RTC issued against the Bases Conversion and Development Authority (BCDA) last April.

Judge Cleto Villacorta III of the Baguio RTC granted CJH DevCo a writ of preliminary injunction last April 27 to prevent BCDA from its attempted forcible ousting of CJHDevco from the 247-hectare former American rest and recreation base that it had leased to the  private developer. “With my findings of a clear and legal right against a unilateral takeover and of grave and irreparable injury arising from such an improvident act at this time, I am compelled to grant the application for a writ of preliminary injunction,” the ruling said. The restraining order also prohibits BCDA from awarding the disputed leased property to a new entity.

The bond was issued by surety Liberty Insurance Corp., the only bonding company now with Supreme Court Certification of Accreditation and Authority. The injunction bond was filed with the RTC Branch 6 on Thursday August 23 before Judge Cecilia Archog.

Mr. Al Yñiguez, Executive Vice President of CJH DevCo said that the filing of the bond was done to show CJH DevCo’s good faith to the court. “Our corporation is a firm believer in the rule of law. We have survived many administrations because we adhere to this principle. We believe that ultimately, the government and the courts will see that CJH DevCo has complied with all requirements due. The fact that BCDA has already been ordered by the court to submit to arbitration is proof of this,” Yñiguez said.

In January, CJH DevCo filed an arbitration case before the Philippine Dispute Resolution Center (PDRCI), as required by its contract, due to BCDA’s constant and continuous violations of their contract, such as its failure to create a One Stop Action Center (OSAC) for the processing of permits for CJH DevCo. However, instead of complying with the arbitration clause, BCDA refused to submit itself to the PDRCI and instead engaged in a costly PR war that included numerous full page advertisements directed against CJH Devco.  This prompted CJHDEVCO to file a Petition before the Baguio court to compel BCDA to submit to arbitration. The Baguio RTC in July ruled in favor of CJH DevCo, compelling BCDA to submit to the arbitration process. BCDA has still not complied.

Baguio City Mayor Mauricio Domogan has also urged BCDA to submit to arbitration, in order for developments in Camp John Hay to continue. “Instead of arbitrarily pushing for the collection of fees, BCDA must submit itself to arbitration with CJH Devco at the Philippine Dispute Resolution Center, as stipulated in their contract,” Domogan said in an earlier statement. Baguio City is entitled to 25% of the lease rentals that CJH DevCo pays to BCDA for the development of Camp John Hay. Baguio City has been deprived of lease rentals due to the refusal of BCDA to arbitrate.

 

Mayor Sets It Straight re BCDA Claims

Interesting how BCDA came out with this release on their website:

BCDA GAINS SUPPORT FROM BAGUIO CITY IN EFFORTS TO COLLECT P3 BILLION FROM CJHDEVCO. The Local Government Unit (LGU) of Baguio City headed by Mayor Mauricio Domogan expressed support to the state-owned Bases Conversion and Development Authority (BCDA) and its subsidiary, the John Hay Management Corporation (JHMC) in efforts to collect the P3 billion debt of the Camp John Hay Development Corporation (CJHDevco) to the national government. This development came after BCDA President Arnel Paciano D. Casanova presented the status of the Camp John Hay lease agreement to the members of the Baguio City Council in a recent meeting held in Baguio City.

Yet soon thereafter our Mayor Domogan denies having made such statement. An article by SunStar reveals: 

Mayor denies BCDA pact

By JM Agreda

Saturday, August 4, 2012

BASES Conversion and Development Authority (BCDA) and City Government officials of Baguio recently held a dialogue discussing issues besetting Camp John Hay.

“We are one in collecting the P3 billion,” Mayor Mauricio Domogan said in a press statement from BCDA.

BCDA said the mayor and the City Council gave this assurance after a briefing by BCDA president and chief executive Arnel Paciano Casanova and JHMC president Jamie Eloise Agbayani on the status of the Camp John Hay lease agreement.

But Domogan denied ever uttering the statement emanating from the BCDA.

In his weekly ‘Ugnayang Panlungsod’ (City Coordinating) program, Domogan told reporters he is baffled as to why statements came out in the national press.

According to the mayor, he expressed his agreement to arbitration between BCDA and CJHDevCo during the dialogue. The arbitration, he added, will detail how much the lessee owes the government and not the P3 billion as stated by the BCDA.

He said that the city is now finalizing its stand on issues surrounding Camp John Hay. Copies of its position paper will be furnished to both BCDA and CJHDevCo and other concerned agencies including the Office of the President.

The mayor said even while he is bent on collecting whatever CJHDevCo owes BCDA, he stressed it is only through arbitration that a compromise may be reached.

Regional Trial Court Branch 6 Acting Presiding Judge Cecilia Dulay-Archog recently ruled for parties to go through arbitration with the Philippine Dispute Resolution Center.

The mayor said BCDA and officials agreed during its dialogue to hold continuing talks to settle other questions of the City Government on the issuance of building and business permits inside the former American military base.

The city is also questioning the implementation of Condition No. 14 or the segregation of some 13 barangays from the Camp John Hay reservation.

He said BCDA maintains its stand to segregate only occupied areas in barangays inside Camp John Hay.

But he said that while they support the segregation initiated by BCDA through its estate manager John Hay Management Corporation, they disagree with BCDA’s move to segregate only occupied areas as it is clearly stated in the conditionality that all barangays regardless if occupied or not will be excluded from Camp John Hay.

Meanwhile, the City Council last Monday expressed support to BCDA but stressed the body will invite JHMC and BCDA for another meeting to discuss thoroughly the government agency’s adherence to the 19 conditionalities.

Councilor Nicasio Alipining stressed in his resolution for BCDA to adhere to the 19 conditionalities especially Condition 14 on the segregation of barangays.

This after the Committee on Peace and Order chaired by Councilor Edison Bilog issued recommendations on the complaints aired by residents of 13 barangays inside the former military reservation opposing acts of alleged disrespect and harassment committed by the security agency hired by BCDA.

Among those present during the meeting of BCDA and City Government were Domogan, vice Mayor Daniel Fariñas, Councilors Nicasio Aliping Jr., Fred Bagbagen, Erdolfo Balajadia, Edison Bilog, Richard Cariño, Councilor Isabelo Cosalan Jr., Elmer Datuin, Peter Fianza, Nicasio Palaganas, and Philian Louise Weygan-Allan.

During the briefing, BCDA president Casanova and JHMC president Agbayani informed the mayor and councilors that CJHDevco has piled up its debt to P3 billion.

BCDA earlier terminated the lease agreement with CJHDevco due to material and incurable breaches.

The Baguio City Government stands to receive 25 percent or P750 million from the P3 billion financial obligation of CJHDevco to the National Government. Baguio City’s share of P750 million, according to BCDA will go a long way in funding the City Government’s priority development programs and projects.

“Baguio City and the entire country is at the losing end of this impasse,” Casanova said.

“As public servants, it is our duty to make sure that government gets what is justly due, because the payments are meant for projects that will benefit no less than the Filipino people,” he added.

“JHMC is working for the good of Baguio and the entire country. The effort to collect from the delinquent lessee is part of the initiative of the National Government to bring in the much needed development funds for the Cordilleras,” Agbayani said.

Someone please tell Mr. Casanova / BCDA NOT to put words in our mayor’s mouth. The people of Baguio do not appreciate it when our mayor is used for propagnda. Thank you!

BCDA CHARGED WITH P100 MILLION FOR FALSE ADS

Arnel Casanova, BCDA president, caused the publication of false statements about Camp John Hay DevCo

PHILIPPINE STAR

MANILA, Philippines – The private developer of Camp John Hay in Baguio City filed yesterday a criminal complaint against officials of the Bases Conversion Development Authority in connection with their conflict over the BCDA’s attempt to take over the leased property.

Represented by former solicitor general Francisco Chavez, Camp John Hay Development Corp. (CJHDevCo) vice president for litigation Manuel Ubarra Jr. and his colleagues accused BCDA executives of deliberately maligning their reputation in a paid advertisement in a newspaper that accused them of “double sale of a log home in Camp John Hay.”

The complainants demanded P100 million in damages from BCDA president and chief executive officer Arnel Paciano Casanova and board directors Felicito Payumo, Zorayda Amelia Alonzo, Teresita Desierto, Ma. Aurora Geotina Garia, Ferdinand Golez, Elmar Gomez and Maximo Sangil.

In the complaint, the CJHDevCo accused the directors of violating Article 353 of the Revised Penal Code.

The BCDA’s paid ad stated: “The Government, through the Bases Conversion and Development Authority (BCDA), wishes to inform unit owners of the Manor Hotel, Suites Hotel, Log Homes, Cottages and other properties in Camp John Hay, Baguio City, that: BCDA filed a criminal case for estafa (swindling) against Robert John Sobrepena (sic) and other officers of the Camp John Hay Development Corp. for the double sale of a log home in Camp John Hay.”

The BCDA had also alleged that the “property was given by CJHDevCo as payment-in-kind to BCDA as part of the settlement of its debt which now totals P2.9 billion. CJHDevCo deliberately and fraudulently withheld from BCDA the fact that it had previously sold the property to another party.”

Just last week, CJHDevCo had filed before Manila prosecutor’s office a complaint for perjury against Casanova for misrepresenting facts in filing the estafa complaint against its officials before the Department of Justice last March.

CAMP JOHN HAY DEVCO SUES BCDA FOR P100 MILLION

BAGUIO CITY—The developer of Camp John Hay on Tuesday filed a P100-million libel suit against the board of directors of the Bases Conversion and Development Authority (BCDA) for a newspaper advertisement addressed to its clients on April 10 that called attention to the company’s alleged “questionable business practices.”

The suit was addressed to BCDA Chair Felicito Payumo, the agency’s president, Arnel Paciano Casanova, and board directors, Zorayda Amelia Alonzo, Teresita Desierto, Ma. Aurora Geotina-Garcia, Ferdinand Golez, Elmar Gomez and Maximo Sangil.

Former Solicitor General Frank Chavez, one of CJHDevco’s lawyers, said the P100-million damage claim was “not enough to compensate for the damage done [to CJHDevco].”

“We draw the line for the oppression inflicted on CHJDevco,” said a statement issued by the company quoting Chavez.

“This is a day of reckoning,” he said.

Since December 2011, CJHDevco and the BCDA have waged a public dispute over contractual violations dating back to 1996 in the course of converting the former American rest and recreation baseland into a tourism complex.

Speaking at a news conference, Chavez said the BCDA’s advertisement and news releases also smeared the reputation of other firms run by businessman Robert John Sobrepeña, CJHDevco chair.

The libel complaint said the articles and advertisement “reveal the fiendish attempt [of the BCDA] to condition the minds of the public.”

The BCDA’s two-page advertisement, published by other Metro Manila newspapers in April, informed investors that their contracts with CJHDevco should not last beyond Oct. 18, 2021.

“The BCDA’s own records … clearly show that it has tacitly acknowledged that the lease shall be effective ‘until Oct. 7, 2046’ [according to the] Limited Warranty Deed issued in its favor over log homes in Camp John Hay, units at The Manor [and] units at The Suites,” the complaint said.

The advertisement also informed CJHDevco clients that the BCDA had filed a fraud case in March against Sobrepeña and CJHDevco’s top officials for “deliberately and fraudulently” withholding the fact that a luxury log home it gave up in 2008 to settle its debts had been sold to a previous buyer, Wilson Sy.

On June 14, CJHDevco filed a perjury case against Casanova for pursuing the fraud case using a false premise.

The company cited a May affidavit by Sy, who said that he had demanded a refund of his P20-million initial payment for John Hay Log Home No. 9 because he had lost interest in the property.

The perjury and libel complaints were filed by lawyer Manuel Ubarra Jr., CJHDevco vice president for litigation.

“Members of the reading public … are being induced to coordinate with the BCDA supposedly to protect their rights as it is implied that failure to do so might lead to the loss of their investments due to CJHDevco’s purported questionable practices,” said the libel complaint.

Alfredo Yñiguez III, CJHDevco executive vice president and chief operating officer, said the company has been unable to market its luxury homes and hotel units because of the advertisement. Vincent Cabreza, Inquirer Northern Luzon

TONG PAYUMO FACES P100 MILLION LIBEL SUIT

http://news.manilastandardtoday.com/2012/06/20/bases-agency-faces-p100-m-suit/

PERJURY RAPS FILED AGAINST BCDA’S ARNEL CASANOVA

Camp John Hay developer, CJH Development Corporation (CJHDevCo), today filed a criminal case for Perjury against Bases Conversion Development Authority (BCDA) President Arnel Casanova, at the Prosecutor’s Office of the City of Manila.

         In a Complaint-Affidavit executed in behalf of CJHDevCo, Atty. Manuel T. Ubarra, Jr., CJHDevCo Vice President for Litigation, charged Mr. Casanova with perjury for falsely stating under oath in a complaint filed before the Department of Justice (DOJ) that CJHDevCo allegedly concealed from BCDA that a property transferred to the latter in 2010 in payment of CJHDEVCO’s rental obligations was subject of a prior sale, and on that basis, fraud was supposedly committed against BCDA.

“Mr. Casanova had the opportunity to verify that no prior sale was in existence at the time CJHDEVCO transferred the property in question to BCDA in 2010.  He personally spoke with the lawyer of the alleged prior buyer, which lawyer is, in fact, a close friend of Mr. Casanova.  Talks between Mr. Casanova and the lawyer of the supposed first buyer and documents made available to Mr. Casanova in those talks, could not have led to any other conclusion other than the fact that the said buyer abandoned his interest in the property way back in 2001, or 10 years before the property in question was transferred to BCDA,” stated Atty. Frank Chavez, CJHDevCo Legal Counsel.

“What puts the final nail in the coffin of Mr. Casanova, so to speak, is the fact that even if he already knew fully-well that the alleged buyer had abandoned all interest in the subject property, he still proceeded to maliciously file a complaint for fraud allegedly committed by CJHDevCo in the transfer of the said property to BCDA,” Atty. Chavez added.  “Unfortunately, for Mr. Casanova, because of the malicious filing of the complaint by BCDA, the alleged prior submitted before the DOJ his very own sworn personal statement that he had abandoned all interest in the property way back 2001, a fact which confirms the position of CJHDevCo”, Atty. Chavez said.

Atty. Chavez further added, “Mr. Casanova has been very arrogant in his pronouncements that he is ready for any suit that might be filed against him in this dispute with CJHDevCo since it comes with the job.  Well, Mr. Casanova, as a public official, holding the highest office in the BCDA, should also exercise due diligence in the exercise of his authority, to ensure that the reputations of private citizens, who are supposedly his “bosses”, following the tone of President Aquino, are not unduly besmirched because he did not do his homework completely.”

Atty. Chavez also said that CJHDevCo remains steadfast in its conviction to prosecute this Perjury case against Mr. Casanova up to the very end.  “CJHDevCo will proceed against Mr. Casanova to the fullest extent of the law for the falsehoods he has made before the DOJ thru his baseless complaint of an alleged double sale to BCDA”, said Atty. Chavez.  “It does not matter one bit even if this Perjury case takes a long time to resolve and even if Mr. Casanova is out of government service, we will continue to prosecute this case, to right the wrong done by Mr. Casanova in maliciously maligning CJHDevCo through a clearly baseless suit,” said Atty. Chavez.