Baguio court OKs new bond on John Hay

BAGUIO CITY—The developer of Camp John Hay here has replaced a surety bond so a government company could be prevented from taking over the former American rest and recreation base land.

In a Sept. 19 ruling, a Baguio court acknowledged that Camp John Hay Development Corp. (CJHDevco) had replaced on Sept. 16 its bond of P736.33 million, a court prerequisite for the Aug. 23, 2012, injunction against the Bases Conversion and Development Authority (BCDA) to remain active.

Alfredo Yñiguez III, CJHDevco executive vice president, said the firm had replaced its former bond underwriter, Liberty Insurance Corp.

CJHDevco, owned by businessman Robert John Sobrepeña, has been feuding with the BCDA since 2012 over counterallegations of contractual breaches. Last year, the BCDA terminated CJHDevco’s John Hay lease.

The court directed the BCDA and the developer to undergo arbitration, which would end in 2014.

But in the course of the dispute, the BCDA and CJHDevco also sued each other. In April, the Department of Justice pursued a malversation complaint filed by the BCDA against Sobrepeña and other CJHDevco officials for getting profits from government-controlled hotel rooms at two facilities, The Manor and Forest Lodge. Vincent Cabreza, Inquirer Northern Luzon