THE Bases Conversion and Development Authority (BCDA) will be giving a partial payment of P54 million from its P600 million debt to the city, the mayor said.
Mayor Reinaldo Bautista Jr. and some members of the local finance committee earlier met BCDA president Narciso Abaya and relayed to him the City Council's rejection of the BCDA offer of paying the debt with golf shares and cottages.
As part of the third restructuring agreement with the developer of Camp John Hay, the BCDA earlier informed the city officials instead of bonds, it will be paying "in kind." These include golf shares and a log cabin.
Bautista quoted the retired general to have reportedly accepted the city officials' decision. The mayor said Abaya is said to have committed to remit an initial P54 million.
Pressed why the BCDA would not pay all of its obligations, the mayor said he was told discrepancy between the computation of the City Treasurer's Office (CTO) and the BCDA is one of the major reasons why it could not fully pay its obligations to the city at this time.
The mayor said he has asked for the immediate remittance of the partial debt payment to the Government Service Insurance System (GSIS).
The amount will cover the city's amortization for the purchase of the Baguio Convention Center (BCC).
The GSIS has, in the past threatened to retake the BCC because of Baguio's failure to pay the annual amortization of the property.
Baguio City Government, meanwhile, blamed the BCDA for not remitting the city's shares of the Camp John Hay rental, which was supposed to be used for the purchase of the facility.
The mayor also said there are "procedural issues", which stalled the payment of the full amount as computed by the CTO.