Bond needed for takeover ban in John Hay–BCDA | Inquirer News
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Bond needed for takeover ban in John Hay–BCDA

/ 11:03 PM June 06, 2012

BAGUIO CITY—The Bases Conversion and Development Authority (BCDA) said the developer of Camp John Hay cannot hide behind a court-imposed preliminary injunction to delay its eviction until it pays a P736-million bond that will make the ruling enforceable.

The Camp John Hay Development Corp. (CJHDevco) did not honor a May 15 directive issued by Arnel Paciano Casanova, the BCDA president, which ordered it to vacate Camp John Hay after it terminated CJHDevco’s October 1996 lease contract to develop the former American rest and recreation center.

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Ferdinand Santos, CJHDevco president, said a court-brokered agreement to maintain status quo at Camp John Hay and a preliminary injunction issued on April 27 by a local judge protected them from the termination and eviction notice.

Casanova also said no writ of injunction will be issued against BCDA until CJHDevco posts the required bond of P736,328,465.50.

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“Clearly, you have no right to make demands upon us when you have not even complied with the conditions laid down by the trial court,” he said.

In a media forum in San Juan City, Alfredo Yñiguez, CJHDevco executive vice president, said the firm lost at least P11.5 billion because of violations by BCDA of its lease contract.

Yñiguez said CJHDevco started incurring the losses when BCDA failed to grant permits for development in Camp John Hay since 1996.

In the same forum, former Zambales Rep. Rene Diaz said Baguio City is the real loser in the feud between BCDA and CJHDevco.

“I can say that the lost opportunities are a waste,” he said at the San Fernandina forum. “The economy of Baguio is affected,” he said.

Yñiguez said the firm asked Baguio Regional Trial Court Judge Cleto Villacorta III to reduce the performance bond, in a motion for reconsideration it filed recently.

BCDA, however, asked Villacorta to raise the bond to P3.2 billion.

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In a BCDA statement, the agency asked the court to include in the bond an amount equivalent to CJHDevco’s rental arrears as well as P162 million representing one year rent. Vincent Cabreza, Inquirer Northern Luzon, and Niña Calleja in Manila

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TAGS: Baguio City, Bases Conversion and Development Authority, Camp John Hay, Camp John Hay Development Corp., News, Regions
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