City stands pat on P652M Camp John Hay debt

THE CITY Legal Office (CLO) has issued another demand letter to the Bases Conversion and Development Authority (BCDA) to settle its obligations to Baguio.

The amount demanded represents the unpaid lease for Camp John Hay, which has ballooned to P652,631,254.50 as of December 2009.

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The amount as computed by the City Treasurer's Office did not include fines and penalties yet.

The computation is based on the 1996 lease agreement signed between the BCDA, Fil-Estate Management Incorporated, Penta Capital Investment Corporation and the CSM Development Corporation.

Although the BCDA claims it should pay lower than what is computed by the treasurer's office citing a restructuring agreement it entered with CJH's developer, CLO officer-in-charge Melchor Carlos Rabanes said the amendment does not bind the city government.

Being the party in interest, Rabanes said Baguio's concurrence to the agreement should have been sought by the BCDA.

The BCDA and the developer, however, did not include Baguio when it amended the terms of payment. Rabanes maintained the amount computed by the city is what should be paid.

BCDA was given 30 days from receipt of the letter to settle its obligation.

The CLO warned if BCDA fails to settle its obligations, the city would have to resort to the courts to force its claim and protect its interest.

Issuance of the demand to pay is anchored on two resolutions, which ordered the CLO to issue a demand letter to the BCDA with the corresponding current computation of how much it owes Baguio.