John Hay execs say doors still shut to casino
BAGUIO CITY—No casino project will be entertained inside Camp John Hay even if a restructured lease includes a gaming contract, an official of John Hay Management Corp. (JHMC) said here on Friday.
JHMC, the estate manager of the John Hay Special Economic Zone (JHSEZ), reiterated this policy last week, heeding a pronouncement made in December by President Benigno Aquino III and a set of conditions set by the city government, said Leandro Yangot, JHMC board member.
JHMC is a subsidiary of the Bases Conversion and Development Authority (BCDA).
Yangot said JHMC invoked this policy again after the board decided on March 19 to review the government’s compliance with the city council’s Resolution No. 362 series of 1994, which prescribes 19 conditions for endorsing the privatization of Camp John Hay.
Resolution No. 362-1994 fulfilled the social acceptability requirements for the project’s environmental compliance certification, he said.
Yangot said JHMC directors asked a committee which he heads to conduct a review of the resolution.
Article continues after this advertisementWhile JHMC is duty-bound to comply with the conditions, he said some of the conditions may have become outdated with the developments that have taken place in Camp John Hay.
Article continues after this advertisementCondition 2 of the resolution states: “The BCDA shall ensure that only wholesome, family-oriented entertainment and recreational activities are conducted within the zone. No casino operations shall definitely be allowed under any guise or form.”
However, BCDA approved a 2008 restructured memorandum of agreement (RMOA) with its developer, the Camp John Hay Development Corp. (CJHDevco), which included a casino cooperation agreement.
A copy of the RMOA cites the casino agreement in section ‘G’ of the renegotiated lease. It states: “Within the context of the One Stop Action Center (Osac) as stipulated under Article IV, Section 3 of the RMOA entered into by the parties, [BCDA] shall give all approvals and sign all documents required for [CJHDevco] and its sublocator or concessionaire to secure an exclusive license from Pagcor (Philippine Amusement and Gaming Corp.) to operate a casino and other gaming facilities within the leased property.”
In December 2011, CJHDevco rescinded the RMOA, saying the government failed to fulfill its obligations. It also cited the alleged failure of the Osac to provide the developer all of its development permits.
Yangot said Camp John Hay officials under the Aquino administration never honored the casino provision because BCDA and JHMC were bound by the 19 conditions set by the city government.
The Supreme Court ruled in 2003 that the Camp John Hay lease was constitutional, but it also nullified the tax benefits enjoyed by JHSEZ because these incentives needed congressional approval.
The 2008 RMOA and previous restructuring agreements between BCDA and CJHDevco arose when the latter lost its benefits because of the court decision.
In 2007, Congress restored the JHSEZ’s incentives through Republic Act No. 9400 (An act amending Republic Act No. 7227, the BCDA Act of 1992). Vincent Cabreza, Inquirer Northern Luzon
