BAGUIO CITY, Philippines – The Department of Justice has dismissed the malversation of public funds charges filed by the government against the executives of the Camp John Hay Development Corp. (CJHDevCo) for lack of evidence.
Prosecution lawyer Omar Cris Casimiro dismissed 50 of the 52 malversation complaints filed against CJHDevCo directors William Russell Sobrepeña, Enrique Sobrepeña Jr., Rafael Perez de Tagle Jr., Gulshan Bedi, Raul Goco, Silvestre Bello III, Bobby Cafe, Dennis Ignacio, Manuel Ubarra Jr., and CJH Leisure Inc. officers Noel Cariño, Ramon Cabrera and Heinrich Maulbecker.
The decision was approved by Senior Deputy State Prosecutor Richard Fadullon.
Earlier, Bases Conversion Development Authority (BCDA) president Arnel Casanova charged the CJHDevCo directors and officers for allegedly withholding income based on a leaseback agreement the BCDA entered into with the CJHDevCo for the operation of 26 hotel rooms at The Manor and The Suites, now renamed Forest Lodge.
Casanova demanded immediate turnover of the operation of hotel rooms from CJH DevCo.
The DOJ upheld the legality of the leaseback agreement in favor of the John Hay Developer, prohibiting a turnover of the management of he hotel rooms to BCDA until after the lapse of the 15-year lease period.
The DOJ said that while a case for malversation of public funds is possible due to the public nature of the property, the CJHDevCo could not be held liable for the charges as it suffered losses in the operations of the hotels.