Palace: BCDA-Camp John Hay dispute now in court

The luxurious Manor at Camp John Hay. INQUIRER file photo

The Bases Conversion and Development Authority (BCDA) is complying with the law in all its actions against Camp John Hay Development Corp. (CJHDC), the developer of the former US facility in Baguio City with which the state-run agency is having a long running dispute, Malacañang said yesterday.

In a statement e-mailed to the Inquirer, Presidential Communications Secretary Herminio Coloma Jr. said the BCDA “acted in compliance with law when it filed for judicial confirmation before the Regional Trial Court (RTC) of Baguio City, regarding the arbitral award issued against Camp John Hay Development Corp. by the Philippine Dispute Resolution Center Inc. (PDRCI).”

Coloma pointed out, however, that the RTC’s decision, which was favorable to the government side, was taken to the higher courts by CJHDC, resulting in the protracted legal battle.

“Camp John Hay elevated the matter before the Court of Appeals (CA), which reversed the RTC ruling,” he said. “Thus, the BCDA questioned the CA ruling before the Supreme Court, which is still pending resolution.”

Various locators and investors in Camp John Hay—which was privatized in the late 1990s—have been in limbo because of the dispute, with both the BCDA and the Robert Sobrepeña-owned CJHDC alleging bad faith in the other party.

Both sides claim that the other party failed to deliver on their contractual obligations. The BCDA claims CJHDC has not been paying the government the annual rental fees for the property, while the private firm claims that the government has failed to turnover to it the entire property, which would have allowed it to earn the money needed to meet its financial obligations.