Tribunal tells gov’t: Pay P1.5B to John Hay firm

An arbitration tribunal on Thursday ordered the Bases Conversion Development Authority (BCDA) to pay P1.5 billion to the Camp John Hay Development Corp. (CJHDevCo) representing rent remitted by the company to the government agency since 1998.

The Philippine Dispute Resolution Center Inc. (PDRCI) also ruled that BCDA was not entitled to the P3.3 billion alleged unpaid rentals to BCDA.

CJHDevCo, in a statement, claimed that the decision was a “confirmation of [the company’s] claims.”

The PDRCI decision also calls for the return to BCDA of Camp John Hay’s undeveloped portions, which were mostly forested area and covered by a log ban, as stated in the a memorandum issued by BCDA subsidiary, John Hay Management Corp.

CJHDevCo assured that buyers in good faith of improvements within Camp John Hay were expected to be protected and honored as buyers in good faith.

CJHDevCo filed in January 2012 the arbitration case seeking to confirm the validity of its decision to rescind its 2008 “Restructuring Memorandum of Agreement with BCDA due to the government agency’s alleged “failures and breaches,” including the agency’s noncompliance with its obligation to immediately set up the so-called “One-Stop Action Center,”, a mechanism that was supposed to facilitate development of the John Hay Special Economic Zone.

In its 42-page complaint, CJHDevCo, through lawyer Gilbert Raymund Reyes, asked the PDRCI that in the event that amendment of the memorandum of agreement was no longer possible, the tribunal should deem as “rescinded” the original lease agreement between the CJHDevCo and BCD.

CHDevCo also asked the BCDA to pay damages amounting to P14.4 billion and the cost of the suit in the amount of P15 million.

The complaint for arbitration came after CJHDevCo notified the BCDA that it has rescinded the agreement due to the latter’s continued failure to fulfill its contract. With a report from Vincent Cabreza, Inquirer Northern Luzon