John Hay firm says BCDA refused payment offer

BAGUIO CITY—The developer of Camp John Hay said it tried to settle its debt feud with the Bases Conversion and Development Authority (BCDA) in August last year, only to be rejected by the agency administering this former American rest and recreation center.

Alfredo Yñiguez III, Camp John Hay Development Corp. (CJHDevco) executive vice president and chief executive officer, on Tuesday said the firm’s officials were humiliated when the BCDA refused to hear their offer for a joint-venture deal that would have given the government P8.5 billion from an extended contract.

It was the same offer CJHDevco submitted to the agency during talks from Aug. 17 to Oct. 7 last year, he said.

The BCDA, he said, sent CJHDevco a demand letter requiring payment of arrears, which had ballooned to P3.2 billion.

The firm said it tried to present an offer that would translate into a total of P8 billion in rent payments but its officials were not even allowed to make a presentation.

Debt feud

At the end of 2011, CJHDEvco decided to rescind its restructured lease agreement and pursue arbitration over the government’s supposed failure to fulfill its contractual obligations. The debt feud had since been elevated to the courts.

CJHDevco began the year by seeking and obtaining a restraining order against the BCDA, and filed lawsuits in June and July for libel, perjury, graft and criminal neglect over  the BCDA actions.

The BCDA filed fraud charges against CJHDevco for settling part of its debts using a luxury home that had allegedly been bought by a previous buyer. On May 15, the agency’s board of directors terminated the lease contract.

Yñiguez said that was the same day the company’s officers went to the BCDA office in Metro Manila to discuss their joint-venture proposal on the invitation of BCDA Chair Felicito Payumo.

“But we were not even let in. We learned later that they had terminated the contract [which was served to CJHDevco here on May 16],” Yñiguez said.

Misleading

Arnel Casanova, BCDA president, said CJHDevco has revived talks about the company’s joint-venture offer to mislead the public.

In a statement, CJHDevco blamed Casanova for allegedly blocking its settlement initiative.

Quoting Manuel Ubarra Jr., CJHDevco vice president for litigation, the statement cited a BCDA board member, who claimed that “Casanova (had) opposed Payumo (who invited the firm to the meeting) and blocked CJHDevco officials from even entering the BCDA board meeting.”

Yñiguez, in the statement, said company officials offered the joint-venture proposal in good faith.

“In effect, Casanova rejected P5.4 billion of payments to

BCDA without reason. It’s a shame for the government,” Yñiguez said.

“It was also Casanova who had refused to meet CJHDevco in the arbitration hearings and would communicate to CJHDevco through a media shame campaign instead,” the statement said.

“It was very frustrating,” the statement quoted Yñiguez as saying.

“We went there upon invitation of the chairman of BCDA, but could not even enter the BCDA board room to present an improved proposal in good faith because of the opposition of Casanova,” the statement said.

It said the firm learned about the BCDA rejecting its improved proposal through news reports quoting the BCDA. Vincent Cabreza, Inquirer Northern Luzon