BCDA challenged: Account for City’s share-A A +A
By JM Agreda
Sunday, March 2, 2014
CAMP John Hay Development Corporation (CJHDevCo) challenged on Sunday the Bases Conversion and Development Authority (BCDA) to account to the City all rental payments made by the firm for the lease of the former US recreation camp.
CJHDevCo’s executive vice president and chief operating officer Alfredo Yñiguez made this statement when asked for comment regarding the Special Committee hearing in the House of Representatives initiated by Baguio City Representative Nicasio Aliping Jr., who justified the hearing to help the City of Baguio collect its 25 percent share of the rentals from CJHDevCo over Camp John Hay.
“Our lease contract with BCDA states that the 25 percent share of the City of Baguio is to be collected by the City of Baguio directly from BCDA since CJHDevCo pays the full rent directly to BCDA. The CJHDevCo has already remitted rental payments directly to BCDA in the total amount of over P1.4 billion," Yñiguez said.
“The City of Baguio should ask BCDA to account to the City the rental payments made by CJHDevCo so that the City can properly collect from BCDA its 25 percent share of the rentals paid,” added Yñiguez.
“Thus, instead of the Special Committee requiring CJHDevCo to submit its financials, the committee should instead ask BCDA to submit its financials since the financials of BCDA will show that rental payments from CJHDevCo were remitted to and accepted by BCDA,” the CJHDevCo executive said.
He added that the obligation to remit the City’s 25 percent share of the rentals resides with BCDA, not with CJHDevCo.
“For this reason, it is for the City of Baguio to require an accounting from BCDA of all rental payments received by BCDA during these past years so that the City can determine with certainty how much their 25 percent share of the rentals should amount to and should have been remitted to the City by BCDA,” he stressed.
Yñiguez, however, refused to comment on statements made by BCDA president Arnel Casanova explaining the claims of BCDA are subject of ongoing arbitration.
“Lest I be made guilty of contempt for divulging information material to the ongoing arbitration with BCDA, allow me to just make it clear that the claims of BCDA for alleged unpaid rentals is subject of the arbitration which CJHDevCo initiated since our computations show that based on the actual lease area delivered to CJHDevCo for development, CJHDevCo is actually overpaid,” he said.
“To date, BCDA has only delivered approximately 23 percent of the guaranteed 18 hectares developable land in the camp. CJHDevCo, however, has already paid rentals not only over the 23 percent developable land delivered by BCDA but CJHDevCo has paid rentals over thrice more than the area delivered by BCDA. So we do not owe BCDA,” Yñiguez said.
“The breach of BCDA to deliver the guaranteed developable areas has resulted in this impasse about any alleged unpaid rentals which is now the subject of arbitration,” he added.
CJHDevCo said it is hopeful that final outcome of ongoing arbitration may be decided before mid-year 2014.
Meantime, Yñiguez proposed for the House to instead examine the financials of BCDA so the City of Baguio can immediately seek satisfaction of its claim to the City’ share in rental payments made by CJHDevCo.
Published in the Sun.Star Baguio newspaper on March 03, 2014.