BCDA files malversation raps vs execs of John Hay firms

MANILA, Philippines - The state-owned Bases Conversion and Development Authority (BCDA) filed yesterday before the Department of Justice (DOJ) 52 counts of malversation against the board of directors and officials of the Camp John Hay Development Corp. (CJHDevCo) and its subsidiary, Camp John Hay Hotel Corp. (CJH Hotels).

The case stemmed over the latter’s alleged refusal to return 26 BCDA-owned hotel units located in Camp John Hay Manor and Camp John Hay Suites in Baguio City, as well as failure to give BCDA an accounting of the revenues earned by CJHDevCo and CJH Hotels from the operations of the 26 rooms.

According to the 22-page complaint, the CJHDevCo directors and officers, even after the lawful demand of the BCDA, allegedly refused to return the public properties to the government.

These properties comprise 16 units of the CJH Manor and 10 units of the CJH Suites Hotel with a total value of P121 million.

The complaint further alleged that CJHDevCo continues to earn from these units but refused to provide the liquidation of public funds – revenues that it earned from the use and lease of the 26 units.

Prior to the filing the complaint, BCDA president Arnel Paciano Casanova demanded the return of these hotel units to the government, alleging that CJHDevCo has been “holding, managing, and operating (the BCDA) units from 2008 to the present and has been profiting from these without giving (the BCDA) a proper accounting and remittances.”

CJHDevCo has been the lessee of the BCDA-administered Camp John Hay for a period of 25 years, renewable for another 25 years, starting on Oct. 19, 1996.  

In 2008, CJHDevCo gave the title of the 26 hotel rooms to the government as partial payment of its unpaid lease rentals supposedly amounting to P2.6 billion. 

For its part, BCDA never signed the leaseback agreement over the units as the term of the leaseback exceeded the term of CJHDevCo’s lease over Camp John Hay, which is only for 25 years from Oct. 19, 1996, and renewable for another 25 years.