BCDA asks court to increase bond to effect injunction
Posted: May 24, 2012 | Category: Freeport And Ecozones
The state-owned Bases Conversion and Development Authority (BCDA) asked the Regional Trial Court in Baguio to increase the amount of bond to be posted by the Camp John Hay Development Corporation (CJHDevco) to cover for the total obligations of the Sobrepena-led lessee to government.
Judge Cleto Villacorta III earlier ruled that CJHDevco should post a bond worth P736 million before the writ of preliminary injunction can take effect. CJHDevco’s total arrears to BCDA, however, stands at P3.077 billion.
In a hearing held Thursday, May 24, BCDA lawyers moved that the bond be increased to P3.2 billion.
The amount includes CJHDevco’s rental arrears to government, plus P162M as one-year rent payment for the duration of the injunction case.
“The probable damages that the injunction will cause to government will be covered by the bond. This will ensure that the government justly gets what is due it,” said BCDA President Arnel Paciano D. Casanova, adding that the posting of the bond with that amount will show that CJHDevco is acting in good faith as it claims.
CJHDevco filed the injunction case after it unilaterally rescinded the Restructuring Memorandum of Agreement with BCDA. The rescission was seen as CJHDevco’s obvious ploy to evade paying the billions of pesos it owes the public.
“Justice has to be served in John Hay if the injunction is to take effect. Let government’s interest be covered by that bond and let CJHDevco show good faith by at least putting up the bond prescribed by the court,” Atty. Casanova added.
The Court set the oral arguments for the motion on June 8, 2012.