BAGUIO CITY – Mayor Mauricio G. Domogan lashed out at some officials of the State-owned Bases Conversion and Development Authority (BCDA) for fingerpointing after the government virtually lost in the arbitration case between the government-owned and controlled corporation and the Camp John Hay Development Corporation (CJHDevCo) in relation to the mutual restitution of the lease agreement and other revised agreements covering the 247-hectare John Hay Special Economic Zone (JHSEZ).
Domogan said it is unfair for BCDA president and chief executive officer Arnel Paciano Casanova and John Hay Management Corporation (JHMC) chairman Silvestre Afable, Jr. to lay blame on city officials for their blatant lapses that caused the various breaches committed by BCDA on the original and revised agreements covering the former American military base that eventually resulted in the arbitration case.
He pointed out it is very clear in the 280-page decision of the Makati-based Philippine Dispute Resolution Center, Inc. (PDRCI) that BCDA committed serious breaches in the various agreements that delayed the supposed development of the economic zone into a world-class tourism destination.
“We are wondering why BCDA officials continue to blame the city government for their obvious mistakes in handling the John Hay deal that resulted to breaches when in fact, we offered them a helping hand to amicably settle the issue but it was BCDA who eventually turned their backs from pursuing the settlement of the dispute,” Domogan stressed.
In August 2011, CJHDevCo chairman Robert John Sobrepeña wrote BCDA offering a payment scheme for the P3.4 billion accumulated lease rentals billed the developer, assuring the outright payment of P500 million upon the signing of the agreement and that the balance will be spread in a period of one year and that the same proposal was reiterated in Spetember 2011.
However, BCDA refused to agree with the offer that subsequently resulted to a deadlock until the eventual filing of the arbitration case with the PDRCI.
When former Rep. Bernardo M. Vergara and Domogan tried to seek congressional intervention over the brewing dispute, BCDA executives refused to appear that forced Vergara to give up in pursuing the supposed settlement that will be brokered by the House committee on bases conversion and development.
Domogan accused BCDA officials of trying to look for justifications and people to blame with their lapses in judgement in holding the issue that led to huge losses on the part of the government, particularly the P1.42 billion requirement which must be first paid by BCDA to the CJHDevCo before the latter will turn over the leased premises to the government and the P3.4 billion being claimed by BCDA as unpaid lease rentals that was declared by the arbitration tribunal as invalid for collection.
The local chief executive slammed BCDA officials for questioning the validity of the 19 conditions imposed by the city government for the development of the former American military base pursuant to Resolution No. 364, series of 1994, saying that the 19 conditions were a product of numerous consultations with the people of Baguio who are considered to be stakeholders who must be consulted prior to the introduction of development projects within the camp.
He cited it is also unfortunate that BCDA officials continue to insinuate that city officials are favouring the developer that is why they refuse to help the State-owned corporation collect the accumulated rentals from CJHDevCo, saying that he wants BCDA officials to issue their public statements relative to his involvement to the developer and he will initiate the filing of libel suits against them.
According to him, the city government is not a party to the lease and revised agreements signed between BCDA and the developer but city officials were able to extend to both parties the assistance they need in order to pursue the development of the American military base.
Domogan said the city government will continue to assert its right over the unremitted shares of the city from the lease rentals paid by locators in some portions of John Hay that were not covered by the agreements but were leased out to private developers by BCDA over the past several years.
Under the 19 conditions imposed by the city for the development of John Hay, the city government is entitled to have a share of 25 percent from the lease rentals to be paid by the developer and locators within the special economic zone and other portions of the former American military base.
By Dexter A. See
