CJHDevco to BCDA : What P2.4-B debt?


A simple accounting failure to reconcile or the sheer incompleteness of an implementing unit and its failure to launch?

American Idol host Ryan Seacrest loves to remind the show’s massive audience and fans thus: ”Cast your votes only after the end of the show.”

The same thing is advised on the curious  “contest” between the Camp John Hay Development Corp. and the Bases Conversion Development Authority: Read on and decide later. 

CJHDevco sought Ped Xing’s help in clearing public misconceptions that may have been spawned by allegations that it is in arrears to the tune of P2.4 billion in rent to the BCDA.

In a statement, CJHDevco said it has, in fact, been setting aside the ‘pro-rata’ rental payments to BCDA in an escrow account based on what BCDA has delivered for development.

CJHDevco chided BCDA Planning and Business Development Group vice president Dean Santiago for claiming that “CJHDevco has been using alibis to justify non-payment or delayed payment,” referring to the Authority’s alleged failure to “operationalize” the One- Stop Action Center  for economic zone locators and the city government’s stringent requirements in the processing of business permits and building permits.

“The One Stop Action Center, which was envisioned in the Restructured Memorandum of Agreement signed in July 2008 is, in fact, non-operational and never was,” said Alfredo R. Yñiguez III, CJHDevco executive vice president and chief operating officer. “CJHDevco has documents to show that John Hay Management Corp.’s   OSAC, the implementing arm of BCDA, remains to be incomplete and far from being fully operational as mandated in Section 3, Article IV of the July 2008 RMOA.”

Yñiguez referred to Section I of Article V of the July 2008 RMOA, which explicitly provides that in order to facilitate the implementation of the Project, BCDA through it’s implementing arm, JHMC, shall maintain the operation of the OSAC with full authority to process and issue all the business, building, and other developmental permits, certificates, and licenses, local and national, from all government agencies necessary to facilitate construction and commercial operation in Camp John Hay for the implementation of the Revised Master Development Plan and the Project which are applicable inside the JHSEZ.

To date, JHMC’s OSAC does not have the full authority to process and issue all the business, building, and other developmental permits, certificates, licenses, local and national, from all government agencies to facilitate construction and commercial operations in CJH.

As a result, CJHDevco incurred significant losses and lost business opportunities since it was not able to launch critical projects as scheduled since the signing of the July 2008 RMOA.

BCDA should be aware of the foregoing facts as CJHDevco has repeatedly conveyed to them its concerns on the “operationalization” of the OSAC through several letters.

CJHDevco pointed out that while some of its locators have been issued their Registration and Permits to Operate, many, if not all, of these were issued way beyond the 30-day turn-around period, mostly after months of waiting.

It claimed that it was pressured to close down locators that have not obtained permits even after these have already been obtained. BCDA was also furnished copies of the Notices of Violation that CJH locators received from the City Government of Baguio.

To date, any tree-cutting application is still forwarded to the Department of Environment and Natural Resources for approval, and JHMC remains to be a mere endorsing entity without full authority to issue environmental permits directly.

CJHDevco further stated that all the foregoing violations are indicative of the incompleteness of the OSAC, proving that BCDA and JHMC failed to implement the OSAC provisions of the July 2008 RMOA.

“This hampered the operation of locators in the John Hay Special Economic Zone, a clear violation of BCDA’s obligation to CJHDevco under the July 2008 RMOA,” Yniguez said.

Still, CJHDevco has not closed options for reconciliation and the settlement of issues with BCDA which, ironically, is not keen on the idea.

In fact, CJHDevco has called for the convening of a joint committee to tackle the outstanding disputes, to which the BCDA has reportedly refused to respond.

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