The luxurious Manor at Camp John Hay. INQUIRER file photo
MANILA, Philippines—The Department of Justice dismissed 50 of 52 cases of malversation of public funds filed by the Bases Conversion and Development Authority (BCDA) president Arnel Casanova against the 12 executives and officers of Camp John Hay Development Corporation (CJHDevCo), the developer of the former rest-and-recreation base for the American soldiers, and CJH Hotel for insufficiency of evidence.
In a resolution by Prosecution Attorney Omar Cris Casimiro which was approved by Senior State Prosecutor Richard Fadullon, the DOJ said there is not enough evidence on the complaint filed by Casanova against CJHDevCo directors William Russell Sobrepena, Atty. Enrique A. Sobrepena, Jr., Rafael Perez de Tagle Jr., Amb. Raul Goco, Atty. Silvestre Bello III, Noel Carino, Bobby Cafe, Dennis Ignacio and officers Gulshan Bedi and Atty. Manuel Ubarra Jr. and CJH Hotel officers Ramon Cabrera and Heinrich Maulbecker.
Casanova alleged that CJHDevCo directors and officers withheld income based on a leaseback agreement that BCDA has with CJHDevCo for 26 hotel rooms at CJHDevCo-run hotels The Manor and The Suites (now renamed Forest Lodge). Casanova demanded an immediate turnover of the subject hotel rooms from CJHDevCo.
But the DoJ said the allegation lacks merit and affirmed the Leaseback Agreement signed by BCDA in favor of the John Hay developer.
“Since the existence of valid Leaseback Agreement was admitted by both parties, its provisions should be properly observed. The same is likewise true as regards the charge of Failure to Make Delivery of Public Property punishable under Article 221 of the Revised Penal Code. Although BCDA already demanded the immediate turnover of the 26 subject hotel room units, CJHDevCo’s refusal to do so was justified pursuant to Section 6 of the Leaseback Agreement,” the DoJ resolution stated.
It further pointed that with regard to BCDA’s rental income in The CJH Suites Hotel, the inquiry of the undersigned is limited to evidence submitted by the parties and the careful examination of the same would reveal that CJHDevCo was indeed suffering from a loss in the operations of the said hotel. Thus, there is no malversation in the said rental income.”
Ironically, it was the refusal of BCDA itself to issue permits to the CJH Suites that caused it to suffer losses. So the refusal seems calibrated to allow BCDA to file fabricated charges against CJHDevCo and its officers, the DOJ prosecutor noted.