BCDA execs, editors cleared of libel charges over John Hay notice

BAGUIO CITY, Philippines - Directors  of  the  Bases Conversion and Development Authority (BCDA) and editors of a national daily have been cleared of the libel charges filed by Camp John Hay Development Corporation (CJHDevCo) in connection with a BCDA-published notice on CJHDevCo’s questionable business practices at the BCDA–administered John Hay Special Economic Zone.

Also included  in the BCDA-published notice was the estafa case BCDA filed against CJHDevCo. 

BCDA  President and Chief Executive Officer Arnel Paciano Casanova hailed the dismissal of the libel charges and said the BCDA board of directors will always work for the interest and protection of the government and the public.

“We stand by the rule of law and, with the same determination and vigor, we will continue to rid the ‘culture of impunity’ in the government-owned property John Hay Special Economic Zone,” Casanova said.

In his 17-page  resolution, Acting City Prosecutor for Baguio City Elmer Surot ruled that the published notice hardly qualified as defamatory, “much more malicious." He said the notice was made in furtherance of the public trust reposed upon BCDA directors and was supported by public records. 

The BCDA executives cleared of the charges were BCDA Board of Directors Felicito C. Payumo, Arnel Paciano Casanova, Zorayda C. Alonzo, Teresita A. Desierto, Ma. Aurora Geotina-Garcia, Ferdinand S. Golez, Elmar Gomez and Maximo L. Sangil.

Also cleared were Philippine Daily Inquirer Vice-President for Advertising Felipe Olarte, PDI Business Editor Raul Marcelo and PDI Assistant Business Editor Corrie Narisma.

The city prosecutor found  nothing defamatory about the published material as it was fair and true reports of facts, that indeed BCDA filed an estafa complaint against CJHDevCo for having previously sold a property eventually used as payment to government.

The ruling further stated  that it was a fact that the HLURB

issued a notice of violation against CJHDevco last March 14, 2012, that CJHDevCo paid its shareholders dividends in the years it claimed losses and asked to defer rental payments to government; and that there are recorded complaints of business malpractice of CJHDevCo within Camp John Hay. 

“A close reading of the articles clearly showed that respondents were just stating a fair and true report of (the facts),” stated the resolution.

The  resolution further noted that the statements made by the BCDA directors were made to protect the corporation and the investing public.

The prosecutor agreed that as a government agency, BCDA is justified to make such statements. Such call is an exception to the presumption that every  defamatory imputation  is  deemed malicious since it is “a fair and true report  made  in good faith without any comments or remarks … of [an] act performed by public officers in the exercise of their functions.”

Since the notice contained statements based on public records and communications, this can hardly be considered to have been made under reckless disregard of whether they are false or not, said Surot.

Last April 10, BCDA published a “Notice to all owners, lessees and  buyers  in Camp John Hay." The Notice was made to inform the public of the pending estafa case which  BCDA  filed  against CJHDevCo and of the questionable business practices within Camp  John Hay. 

The published material disclosed that CJHDevCo paid its shareholders P928 million in the same year it refused to pay lease rentals to government allegedly because it is suffering business losses.

Also contained in the publication was a report that the HLURB issued a notice of violation to CJHDevco for selling lots within Camp John Hay without the necessary HLURB permits.

To date, the CJHDevCo has continuously refused to pay the government its  lease  rentals  for  occupying and operating Camp John Hay. Its rental delinquencies now total more than P3 billion.