John Hay developer files graft raps vs BCDA execs

MANILA, Philippines - Former Solicitor General Frank Chavez filed graft and corruption charges yesterday against the chief executive officer and eight other officials of the Bases Conversion and Development Authority (BCDA) before the Office of the Ombudsman for alleged failure to fulfill their obligations to a property developer.

Chavez filed the complaint as counsel for Camp John Hay Development Corp. (CJHDevCo), represented by its vice president for litigation, Manuel Ubarra Jr.

Among those charged were BCDA chief executive officer Arnel Casanova, board chairman Felicito Payumo, and board directors Zorayda Amelia Alonzo, Teresita Desierto, Ma. Aurora Geotina-Garcia, Ferdinand Golez, Elmar Gomez, and Maximo Sangil.

CJHDevCo is also accusing the respondents of violating Republic Act 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees and Presidential Decree 807, also known as the Civil Service Decree of the Philippines.

The charges stemmed from BCDA’s alleged failure to comply with its obligations under a 2008 restructuring memorandum of agreement (RMOA), which supplements a 1996 lease agreement between the two parties, thus supposedly causing undue injury to CJHDevCo.

The lease contract covered 46,996.70 hectares of property within the John Hay Special Economic Zone under the administration of the BCDA.

According to the agreement, CJHDevCo was under obligation to develop the leased property into a wholesome family-oriented public tourism complex, multi-purpose forest watershed, and human resource development center.

The lease agreement had a term of 25 years, renewable for another 25 years, effective upon its signing, which means that since it was signed on Oct. 19, 1996, it remains effective until Oct. 19, 2021.

The 2008 RMOA sought to remedy problems of serious and long delays due to the supposed failure of the BCDA to issue necessary permits, clearances and licenses on time.

CJHDevCo said BCDA obligated itself to maintain the operation of a One-Stop Action Center with full authority to process and issue all the business, building and other developmental permits, certificates and licenses from all government agencies necessary to facilitate its construction and commercial operations at Camp John Hay, but that it supposedly failed miserably.

CHJDevCo said more than three years and 10 months have already elapsed since the RMOA took effect and that it has repeatedly requested the BCDA to perform its obligations, but the state-run firm just ignored this.

In a letter dated Dec. 6, 2011, Casanova, instead of addressing the matter, supposedly stated that CJHDevCo must immediately settle the amount of P581,504,549, supposedly representing its “arrears in current lease rentals, principal and interest on past due obligations and all applicable interest and surcharges.”

CJHDevCo said Casanova filed a complaint before the Department of Justice charging its officers with estafa, supposedly arising out of a double sale by CJHDevCo of a log home at Camp John Hay to the BCDA and another individual.

CJHDevCo, however, denied that a double sale took place.

“They see the potential and they may want to run the business themselves to our prejudice and despite unfulfilled previous obligations on their part. That is the only logical explanation to what is otherwise an illogical act,” Chavez said.