‘John Hay owes nothing to Baguio City government’

BAGUIO CITY — The John Hay Management Corp. (JHMC), a subsidiary of the Bases Conversion and Development Authority (BCDA), insisted that it does not owe anything to the Baguio City government, which is demanding some P700 million in supposed unpaid rentals.

"We owe the city government nothing," said lawyer Lyssa Pagano-Calde, chief operating officer of the JHMC, which is managing the former US rest and recreation facility here.

Mayor Braulio Yaranon has asked the JHMC to pay some P700 million representing the city’s unpaid 25 percent share of rentals from 1996 to the present.

Pagano-Calde, however, said the JHMC can only give the city government what it has collected, amounting to P825 million, less the P250-million advance payment in 1996 which is held in trust.

Of the amount, she said the city government is entitled to only P143.75 million, of which P15.130 million is un-remitted but has been earmarked for the rehabilitation of the Baguio Convention Center as provided for in the memorandum of agreement between the BCDA and the city government.

On the city’s 25 percent share from lease rentals, Pagano-Calde said, ‘"It should be emphasized that this amount is computed based on actual lease payments since the BCDA cannot be compelled to source funds from other conversion programs as these are earmarked primarily for the Armed Forces modernization and the respective local government units where the former military bases are located."

She said the BCDA would pay only if it can collect from the developer, Camp John Hay Development Corp. (CJHDevCo), which she said has been remiss on its payments.

Since paying in full for 1997, she said CJHDevCo has only given partial payments in the succeeding years.

The city’s share has normally come in the form of priority projects. The last disbursement, amounting to P50 million, went as partial payment for the acquisition of the Baguio Convention Center in 2003.

The JHMC assured the Government Service Insurance System, which owns the center, that it would pay the P200-million balance in its future collection.

The JHMC has earmarked the remaining P15.13 million for the rehabilitation of the 28-year-old facility.

Yaranon, however, refused to recognize the tripartite agreement among the BCDA, GSIS and the previous city administration.

He said he would rather collect from the BCDA than get the convention center that was built purposely for the staging of the World Chess Championship between former world champion Anatoly Karpov and Viktor Korchnoi.

"The mayor should act now so we can have full ownership of the (convention center)," said councilor Elmer Datuin, who has been critical of the Yaranon administration.

Under the memorandum of agreement, the city government is entitled to a P50-million soft loan from the GSIS for the center’s full rehabilitation.

Councilor Perlita Chan-Rondez has urged the JHMC to take over John Hay due to the failure of the CJHDevCo to remit payments.

"The BCDA should take over John Hay now," she said.