Court stops Camp John Hay takeover

BAGUIO CITY—A court here granted the Fil Estate-owned Camp John Hay Development Corp. (CJHDevco) a temporary restraining order  (TRO) on Tuesday, which prevented government agencies like the Bases Conversion and Development Authority (BCDA) from taking over the development of the former American rest and recreation center here.

The BCDA had issued demand letters to the Camp John Hay developer, requiring it to pay an outstanding debt reaching P3 billion as of the first week of January.

Alfredo Yñiguez III, CJHDevco executive vice president and chief operating officer, said the company suspended payments due to government’s contractual violations, among them its failure to provide all permits needed by the firm to fully develop the former rest and recreation base of US forces.

Negotiations to resolve this debt impasse broke down last year and the CJHDevco had asked for an arbitrator on Jan. 11 to mediate the feud. Yñiguez said the firm submitted a 42-page complaint before the Philippine Dispute Resolution Center Inc., which sought to reclaim the 11 years that the company lost through a P14.44-billion damage claim.

Takeover moves

But CJHDevco, he said, went to court because of takeover fears.

Details of the TRO have not been made public on Tuesday. Yñiguez said the court issued the restraining order to stop the imminent threat of an illegal takeover of Camp John Hay.

On Tuesday morning, he asked Mayor Mauricio Domogan for security support, citing reports made by the company’s security officials that they had seen security personnel from the government stationed at some of CJHDevco’s projects and assets. Among these CJHDevco properties are its hotels, The Manor and The Suites.

The report has not been validated by the John Hay Management Corp. (JHMC), the government’s estate manager. Its board of directors met on Tuesday for its weekly session.

Dr. Jamie Eloise Agbayani, JHMC president, on Tuesday said the firm is pursuing the collection of CJHDevco’s outstanding debts.

Legal claims

Yñiguez said the JHMC and BCDA could not legally take over the facilities because CJHDevco is pursuing its legal claims before an arbitration court.

On Jan. 9, CJHDevco also rescinded its 2008 restructured memorandum of agreement (RMOA) with BCDA. The RMOA served as a restructured lease agreement and a payment scheme for the developer’s debts.

Yñiguez said the company had asked the arbitration court to also consider the original lease agreement between CJHDevco and BCDA as “deemed rescinded,” so BCDA can pay damages, as well as the cost of the suit amounting to P15 million.

“We only wanted two things [when we tried to mend fences with BCDA]. We asked to pay rental pro rata (or proportioned against) on what we were able to develop [because we were granted] permits. The second thing we asked is that government restore the 11 years we lost due to its contractual breaches,” he said.

A statement from CJHDevco attributed information about the takeover from a source in the BCDA that it would not identify.

“The BCDA is closely coordinating with the Office of the Government Corporate Counsel (if a government takeover of Camp John Hay) is legally justifiable,” the statement quoted the BCDA insider as saying.  Vincent Cabreza, Inquirer Northern Luzon