SEC investigates John Hay Corp

Published June 10, 2012 9:02pm

THE Securities and Exchange Commission is investigating the Camp John Hay Development Corp. and its subsidiary, Camp John Hay Suites Corp. as both are allegedly, and among a multitude of things, “engaged in selling securities without the proper registration issued by this Commission in violation of the SCR (Securities Regulatory Code).”

A cease and desist order the SEC issued June 7 compelled the companies to immediately stop the supposed illegal sale of units in the condotels The Manor and the John Hay Suites in Baguio City. The SEC issued the order because the Commission found that the companies did not have the required license to engage in such business activity.

The seven-page cease and desist order was signed by SEC Chairperson Teresita Herbosa and Comissioners Ma. Juanita E. Cueto, Manuel Huberto Gaite, Raul Palabrica, and Eladio Jala. It was issued upon recommendation of the SEC’s Enforcement and Prosecution Department which conducted the investigation.

The inquiry was originally launched because of mounting complaints that condotel units and golf shares were not delivered even when they were fully paid for.

The Housing and Land Use Regulatory Board also issued an order prohibiting CJHDevco from selling units at the John Hay Suites because it does not hold any permit to sell.

Furthermore, according to findings of the Bureau of Fire Protection, the John Hay Suites has fire and safety violations.

Also according to the Bases Conversion and Development Authority, owner of the John Hay property, CJHDevco has refused to pay its lease, which has now ballooned to more than P3 billion in arrears. Thusly, the BCDA has terminated the company’s lease.

BCDA President and CEO Arnel Casanova said that the BCDA is “duty bound to protect all investors and stakeholders from all kinds of shenanigans being perpetrated by unscrupulous parties within John Hay.”

The BCDA also said that CJHDevco is profiting at the expense of the government and the public, and have even put public safety at risk because of their refusal to comply with government regulations.

Casanova said the cease and desist order is a wake-up call for John Hay locators, investors and sub-lessees to register their respective business interests with the BCDA to ensure that everything is aboveboard. — DVM/ELR, GMA News

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