BAGUIO CITY, Philippines – Bases Conversion and Development Authority (BCDA) officials met with the Korean ambassador to the Philippines on Monday, March 10 and reaffirmed their commitment to assisting affected stakeholders, including Korean sub-lessees who purchased units in Camp John Hay, a former American rest-and-recreation facility.
“BCDA is fully committed to assisting our Korean lessees in John Hay,” said BCDA chair Hilario Paredes, assuring South Korean Ambassador Lee Sang-hwa on Monday, March 10 that temporary accommodations have been provided, and nearly all have signed new lease contracts.
Paredes met with Lee in New Clark City in Capas, Tarlac to discuss resolutions to the concerns of Korean lessees. The meeting underscored BCDA’s commitment to engaging foreign stakeholders and addressing their concerns in a diplomatic and constructive manner.
Paredes earlier met with Korean lessees in Baguio to discuss their concerns following the Supreme Court ruling on Camp John Hay.
“We fully understand the challenges this situation presents, which is why we want to assure our foreign friends affected by the ruling that we are here to provide the necessary support,” he said. “We are working on permanent solutions to help them continue enjoying John Hay, while ensuring compliance with legal frameworks.”
He emphasized that no foreigner, including Koreans, has been threatened with deportation, reaffirming BCDA’s appreciation for Korea’s investments in Clark, John Hay, and beyond.
The agency emphasized its commitment to assisting those impacted by the ruling, and encouraged affected parties to contact the BCDA Help Desk for further guidance.
Lee expressed his appreciation for the gesture of Paredes and said he will let the Korean community and the government know.
CJHDevCo: BCDA was a party to the 50-Year leases
Meantime, the ongoing legal and public relations battle between BCDA and businessman Robert Sobrepeña’s Camp John Hay Development Corporation (CJHDevCo) intensified the past week, with both parties issuing statements on the validity of 50-year leases at the historic mountain retreat.
CJHDevCo, in a March 6 statement, claimed that BCDA had been aware of and actively participated in structuring and approving 50-year lease agreements for properties within Camp John Hay since the original lease agreement was signed in 1996. BCDA, in response, reaffirmed that the Supreme Court had already ruled with finality on the matter, rejecting CJHDevCo’s claims.
CJHDevCo’s statement alleged that BCDA not only approved but also required a 50-year lease structure from the start. The developer cited various documents, meeting records, and agreements spanning decades, which it said proved BCDA’s involvement.
According to CJHDevCo, then-BCDA vice-chairman Rogelio Singson publicly affirmed in 1996 that the lease was effectively for 50 years, with no need for renegotiation after the first 25 years. The company also pointed to a 2000 Memorandum of Agreement (MOA) in which BCDA allegedly accepted 30 golf shares and 14 condotel units as part of rental payments, units that carried 50-year leasehold rights.
Further, CJHDevCo claimed that a 2003 MOA explicitly authorized the sale of properties with 50-year leases and granted BCDA observer status on CJHDevCo’s board, where BCDA representatives allegedly attended multiple meetings discussing property sales. The company also noted that BCDA itself held 16 Manor units and 10 Forest Lodge units under 50-year lease terms and collected revenues from these properties for years.
“The facts are clear: BCDA knew, approved, and benefited from the 50-year lease model,” CJHDevCo said. “For BCDA to now deny the rights of property owners, whom it encouraged to invest, is an act of betrayal.”
CJHDevCo urged property owners at Camp John Hay to demand that their leasehold rights be upheld, arguing that BCDA could not erase its decades-long involvement in structuring and promoting 50-year leases.
BCDA: Supreme Court has settled the issue
BCDA countered these allegations in a March 10 statement, reiterating that the Supreme Court had already ruled with finality on October 22, 2024, upholding the 2015 arbitral award that rescinded the lease agreement between BCDA and CJHDevCo.
“Any malicious allegations against BCDA are evidently bereft of merit given that all issues involving the matter have been resolved by the Supreme Court with finality,” BCDA stated. “BCDA, as a government instrumentality, strictly adheres to the pronouncements of the highest tribunal.”
BCDA’s response made it clear that the agency considered the matter legally closed and accused CJHDevCo of attempting to discredit the government.
The legal battle over Camp John Hay
Camp John Hay, a 247-hectare former US military base, was leased by BCDA to CJHDevCo in 1996 under a 25-year agreement with an option to renew for another 25 years. However, legal disputes erupted after CJHDevCo stopped paying lease obligations, citing BCDA’s failure to provide promised tax incentives.
By 2012, BCDA moved to terminate the lease due to billions of pesos in unpaid rent, leading to arbitration. The 2015 arbitral ruling found both parties in violation of the contract, ordering CJHDevCo to vacate the property and BCDA to refund P1.42 billion in rental payments.
Despite the ruling, CJHDevCo continued to operate within Camp John Hay, leading to years of legal battles. The Supreme Court’s final ruling in 2024 reinstated the writ of execution, ordering CJHDevCo and all its sub-lessees to vacate the property and return all permanent improvements to BCDA.
While BCDA has signed over 75 new residential and commercial leases since regaining control of the estate, including agreements with some former CJHDevCo sub-lessees, others continue to contest the eviction orders.
With both sides standing firm, CJHDevCo insisting that BCDA recognized 50-year leases and BCDA citing the Supreme Court’s ruling, the legal and public dispute over Camp John Hay is far from over.
As BCDA pushes forward with its redevelopment plans and enforcement of the Supreme Court ruling, property owners and investors remain caught in the middle, uncertain about the final resolution of their claims.
For now, BCDA continues to urge affected parties to reach out for assistance, while CJHDevCo calls on property owners to fight for their leasehold rights. – Rappler.com