John Hay developers accuse BCDA of using 'dirty tactics'

MANILA, Philippines - Developers of Camp John Hay Special Economic Zone in Baguio City accused the Bases Conversion Development Authority (BCDA) yesterday of resorting to dirty tactics in its bid to take over their properties.

In a statement, the Sobrepeña-led Camp John Hay Development Corp. decried moves of BCDA to “crucify” them in the media by claiming they sought court reliefs only to escape financial obligations.

The firm said it would be best for BCDA to just wait for the decision of the court before acting on its planned takeover of the former US rest and recreation facility.

“The way things are, CJHDevCo is deliberately being set up by BCDA to fail so that it could easily justify its planned takeover,” CJHDevCO chief operating officer Alfredo Yniguez said.

He explained that the company had no choice but to bring the issue for arbitration by the Philippine Dispute Resolution Center in December and later to seek protection from the Baguio Regional Trial Court to avert a BCDA takeover attempt.

“We simply have no choice but to resort to the protection of the court,” he said in explaining the company’s decision to seek a permanent restraining order against the planned BCDA takeover.

CJHDevCo, which has poured in close to P3 billion in projects since it won the bid to redevelop John Hay in 1996, has been locked in a dispute with the BCDA over its decision to suspend lease payments as a result of a 2003 Supreme Court decision that took away the area’s special economic zone benefits that, in turn, affected the company’s development plans.

According to Yniguez, the firm, which is behind the Camp John Hay Manor Hotel, the Camp John Hay Suites Hotel and the Camp John Hay Golf Club, had actually a greed to comply with its obligations under a debt structuring arrangement with BCDA on the condition that the state-owned firm would set up a One-Stop Action Center to facilitate the issuance of permits and other requirements within 30 days.

“We are being required to comply fully to a financial obligation which compliance by us would only be rendered doable or possible if BCDA does not breach its obligations,” he said, adding that CJHDevCo had to suspend its lease payments because BCDA reneged on its own obligations by failing to act on their request for permits within the agreed period.

Yniguez also took exception to BCDA claims that it has only been CJHDevCo that has been complaining about the issuance of permits and that there have been no such issues from other locators such as Ayala Land Incorporated, the Asian Institute of Management and the Intercontinental Hotel Groups.

“How can the Intercon Hotel Group and AIM file complaints against BCDA when these two entities are operated by BCDA itself?” Yniguez asked. “Ayala Land will also not complain because unlike CJHDevCo, it is able to secure its permits from BCDA within 30 days as claimed by BCDA chairman Felicito Payumo himself.”

“How come mere sub-locators like Ayala Land, get their permits on time from BCDA, while the principal locator, CJHDEVCO, is subjected to late issuance of permits?” Yniguez also asked.