BCDA agrees arbitration right path in John Hay

BAGUIO CITY—The Bases Conversion and Development Authority (BCDA) has submitted to arbitration to settle its dispute with the developer of Camp John Hay over what the  BCDA said was the developer’s P3-billion debt.

Lawyer Arnel Paciano Casanova, BCDA president, said on Friday that the agency’s board of directors has nominated a panel of negotiators to the Philippine Dispute Resolution Center (PDRC) and is waiting for the arbitration agency to schedule talks.

Casanova led a public consultation here on the segregation of 14 villages from Camp John Hay.

A source from  John Hay Management Corp., a BCDA-owned firm, said the initial meeting had been set on Oct. 26 but it had to be reset because the date fell on a holiday.

The Camp John Hay Development Corp. (CJHDevco) had elevated the dispute before the PDRC at the start of the year, after it rescinded its contract to develop Camp John Hay in December 2011 over alleged contractual breaches by the government.

The feud escalated into an exchange of lawsuits brought to a Baguio court that compelled both parties to undergo arbitration.

Baguio Judge Cecilia Corazon Archog ruled on July 13 that “the volleyball of accusations [traded by the BCDA and CJHDevco] is a matter that can be best threshed [out] by arbitration,” which is prescribed by a clause addressing contractual disagreements in the 1996 John Hay lease agreement.

Archog is the fourth judge to handle the dispute between CJHDevco and the BCDA this year. Among the issues she addressed was the bond required from the developer for the

April 27 preliminary injunction issued by another Baguio judge.

The injunction prevented the  BCDA or any other government agency from forcibly confiscating CJHDevco assets or taking over Camp John Hay.

On Saturday, Alfredo Yñiguez, CJHDevco executive vice president and chief operating officer, said the company followed the rules that cover the bond.

One of the cases filed by CJHDevco against the BCDA  was alleged criminal neglect on the part of the government agency.

Another case filed by CJHDevco against the BCDA was the one filed by the firm on June 16 alleging perjury against BCDA officials. Vincent Cabreza, Inquirer Northern Luzon