CJHDevco fails to meet payment deadline

MANILA, Philippines -  The Sobrepeña-owned Camp John Hay Development Corp. (CJHDevco) has failed to meet the May 31, 2011 deadline to pay its current lease rentals amounting to P272 million.

Bases Conversion and Development Authority (BCDA) vice president for Business Development and Operations Dean Santiago said the amount of P272 million represents CJHDevco’s rentals from December 2009 to March 31, 2011 based on the Restructured Memorandum of Agreement (RMOA) forged last July 1, 2008.

Santiago said that by end of June 2011, CJHDevco’s arrears shall have increased to P381.8 million, broken down into P309.68 million of rentals from December 2009 up to June 2011 and P72.18 million in interest on past due obligations.

CJHDevCo has acknowledged its indebtedness to the BCDA when it signed the Restructuring Memorandum of Agreement (RMOA) in 2008 for the lease of 247 hectares in the John Hay Special Economic Zone (JHSEZ) in Baguio City.

Under Section 3 of the 2008 RMOA which provides, to wit: “LESSEE hereby acknowledges its obligations under the 19 October 1996 Lease Agreement, the 14 July 2000 MOA and the 18 July 2003 MOA for the years 1999 to 30 June 2008 amounting to Pesos: Two Billion Six Hundred Eighty Six Million Four Hundred Eighty One Thousand Six Hundred Forty Four (P2,686,481,644) inclusive of interest....”

“This belies the recent statement of CJHDevco denying their arrears to BCDA. It is very clear in the RMOA signed in 2008 that they acknowledged their arrears,” said Mr. Santiago.