BAGUIO CITY, Philippines?The Government Service Insurance System (GSIS) has kicked out offices of the city government from the Baguio Convention Center, where the 1978 world chess championship between Russian grandmasters Viktor Korchnoi and Anatoly Karpov took place.
Lawyer Joseph Philip Andres, GSIS vice president for business development and accounts recovery, wrote the city government on May 28 to inform local officials that the GSIS had repossessed the property because the city reneged on its P250-million obligation.
With the Bases Conversion and Development Authority (BCDA) acting as underwriter, the GSIS sold the convention center to the city government in 2004.
The purchase agreement specified that the obligations would be remitted from Baguio?s rent share from the developer of Camp John Hay, but a legal dispute between the BCDA and the Fil Estate-owned Camp John Hay Development Corp. (CJHDevco) affected these payments.
Mayor Reinaldo Bautista Jr. said the BCDA cemented the deal in 2004 by turning over P50 million, and had already transmitted another P50 million this year.
?Maybe [GSIS president] Winston Garcia has not been apprised about this development. We are asking for another [meeting] with them, but we are not leaving [the convention center],? he told reporters on Thursday.
?We regret to inform you that we are now terminating the memorandum of agreement over the GSIS Convention Center property by reason of the city?s failure to remit the required amortization. We believe we have given your office enough time and due notice to put your account with GSIS in good standing,? Andres said in his letter.
He said the city arrears amounted to P125 million.
Andres?s letter asked the city government to leave the property by July 1, which is 30 days from June 1 when the city government received the notice.
The facility has been used for city-related functions and is occasionally rented out. It houses the office of the city tourism officer, the office of the Baguio Centennial Commission, and the art gallery of the local artists? group Tahong Bundok.
The convention center basement has been leased to the regional office of the Securities and Exchange Commission.
Bautista said the GSIS may not unilaterally break any contract with the city government.
