House panel to try settling dispute between BCDA and CJHDevco

The House committee on bases conversion is sending out a subpoena on the books of Camp John Hay Development Corp. to shed light on the dispute between the Sobrepeña-led company and government’s Bases Conversion Development Authority.   BCDA claimed in a statement Thursday that the committee, chaired by Kalinga Rep. Manuel Agyao, gave the motion of Ilocos Sur Rep. Eric Singson the thumbs up during Wednesday’s hearing to subpoena the financial records of CJHDevco for an independent audit.   CJHDevco owes government P3 billion in rentals for a leased portion in Baguio City’s John Hay Special Economic Zone (JHSEZ ), according to BCDA president and CEO Arnel Paciano Casanova.   The Sobrepeña company, BCDA claimed, has not filed its financial statements with the Securities and Exchange Commission (SEC) since 2008.   Fil-Estate Corp., chaired by Robert John Sobrepena, manages CJHDevco.   “We welcomed the outcome of yesterday,’s congressional hearing, because it gave us the opportunity to explain out side,” Alfredo Yñiguez, CJHDevco executive vice president and chief operating officer, said Thursday in an interview with GMA News Online.   During Wednesday’s committee hearing, “We were able to solicit the support of congress regarding our problems with BCDA,” said Yñiguez.   CJHDevco claimed it has lost money over the years since it was not able to operate its 32-hectare property leased within the JHSEZ, saying it was one of the reasons why it did not pay rent on land.   Since 1996, when CJHDevco won the bid for the Camp John Hay property, Yñiguez said the company was not able to develop and operate on its leased land.   Business opportunities were also CJHDevco has claimed losses in business opportunities due to the Supreme Court ruling nullifying tax incentives in the JHSEZ in 2003. CJHDevco also cited as reason for non-payment, the delay in the processing of their permits by the One-Stop Action Center.   “Hindi nila binigay ‘yung maga pangako nila,” Yñiguez said, referring to BCDA and its subsidiary John Hay Management Corp. “We don’t have a permit to operate… So how could we generate revenues?”   “We lost a lot of money during those years, he added. Technical working group   Still, BCDA’s Casanova alleged that CJHDevco has been declaring dividends while defaulting on its obligations to government.   The city government will receive P750 million once BCDA — which governs JHSEZ — is able to collect from CJHDevco, according to the BCDA statement.   CJHDevco supposedly "places the government and the city of Baguio in a very disadvantageous position," according to the BCDA statement, citing Singson.   “They have not disclosed their books to us,” said Casanova.   “At the heart of this is transparency. We want a private sector partner, whom we can trust, and who is transparent to the public, the BCDA official added, saying, “CJHDevco has been claiming losses without presenting proof and without stating the billions of revenues it generated as well.”   But Yñiguez told GMA News Online, “We are prepared to show our books… We have our records, which we have not shown to them because of the problem between us and the BCDA.”   The House committee on bases conversion on Wednesday created a technical working group to mediate between BCDA and CJHDevco, headed by Baguio City Rep. Bernardo Vergara.   The group will address the concerns of both parties, as well as issues a subpoena on financial documents of CJHDevco and its affiliated companies to shed light on their business practices.   Permits were not issued to CJHDevco as a result of their own neglect, Casanova noted, saying, “They have not filed their income tax return and submitted financial statements to the Securities and Exchange Commission since 2008.”   “As a government agency, it is our policy to help enforce government laws. We require submission of income tax returns,” he added. — VS/GMA, GMA News