BCDA welcomes suit vs. Camp John Hay hotel operator

MANILA, Philippines - The Bases Conversion and Development Authority (BCDA) on Thursday  lauded the Department of Justice for recommending the filing of malversation charges against executives of the Camp John Hay Development Corporation (CJHDevCo).

The charges stemmed from the alleged refusal of the CJHDevCo to account for the 26 BCDA-owned hotel units located in Camp John Hay Manor and Camp John Hay Suites in Baguio City and retaining the earnings generated from its operations.

“This is a victory for the country under the President’s leadership and his Daang Matuwid policy. We welcome the decision of the DOJ which is the first step in getting back and recovering what is rightfully government property and revenues,” BCDA president Arnel Paciano Casanova told reporters in Taguig City.

Casanova said the charges were filed Thursday by the DOJ in Baguio City.

In its resolution dated April 1, the DOJ said the delayed remittance of the rental income of BCDA by the respondents in the case did not extinguish their criminal liability for malversation of public funds.

“Again it should be noted that the respondents did not provide any sufficient explanation for the said remittance. Thus they are presumed to have malversed the rents due to BCDA for the period mentioned above under leaseback agreement,” the DOJ resolution read.

Named respondents in the case are CJHDevCo chairman and chief-executive-officer Robert John Sobrepeña, Ferdinand Santos, Alfredo Yniguez and Emily Roces-Falco.

Casanova said the filing of the charges against the executives of the CJHDevCo is a welcome news for all law-abiding businesses.

“We want to make unscrupulous businesses accountable for their actions. The era of using political connections for business gain is over. This ushers an era of ethical business based on a level playing field that will open opportunities for businesses that practice good governance and transparency,” Casanova added.

Last August 15, the BCDA filed before the DOJ a complaint for 52 counts of malversation against the board of directors and officials of the CJHDevCo and its subsidiary, Camp John Hay Hotel Corporation (CJH Hotels).

In its 22-page complaint, the BCDA stated that the CJHDevCo directors and officers, despite the lawful demand of the BCDA, have refused to return the said public properties to the government. The properties include 16 units of the CJH Manor Hotel and 10 units of the CJH Suites Hotel, which have a total value of P121 million.

According to the BCDA, the hotel units were payments in kind or “dacion en pago” made to the BCDA in 2008 as partial settlement of CJHDevCo’s unpaid rental obligations.

The BCDA said in its complaint that CJHDevCo continues to earn from these units but has refused to provide the liquidation of public funds or the revenues that it had earned from the use and lease of the 26 hotel units.

Aside from the 26 units, CJHDevCo also owes the BCDA over P3 billion in lease payments in the John Hay Special Economic Zone (JHSEZ).