Baguio council seeks report on P225-M Camp John Hay claim vs BCDA

BAGUIO CITY, Philippines — The city council is seeking a detailed accounting of Camp John Hay‘s business tax collections and the city’s estimated P225-million claim for unpaid rentals and revenue shares from the property.

In a statement Sunday (Nov. 1), the city council discussed the matter during its recent regular session, when Councilor Leandro Yangot Jr. asked City Treasurer Alex Cabarrubias why revenues from Camp John Hay locators were not separately reflected in the city’s revenue presentation.

Cabarrubias explained that business taxes paid by Camp John Hay locators were already included in the city’s overall business tax collections. He agreed to extract the figures and submit a separate report to the council.

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The discussion also covered the city’s pending claim of approximately P225 million in unpaid rentals dating back to 2014.

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Cabarrubias clarified that the amount was separate from the P1.4-billion figure involving former developer Camp John Hay Development Corporation (CJHDevCo).

City Accountant Fredda Jimenez said the city had insufficient basis to recognize the P225-million claim as a receivable but could disclose it in the notes to its financial statements. She also agreed to provide supporting reports to the council.

READ: Baguio asks for full audit of John Hay structures, profits

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Cabarrubias further reported that collections from businesses in special economic zones had reached around P213 million as of Sept. 30, 2026, based on their income tax returns.

Vice Mayor Faustino Olowan also asked whether Camp John Hay locators had started paying business permit fees following the Supreme Court decision involving the property. Cabarrubias confirmed that the city resumed collecting payments from locators last year.

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He said some businesses had requested until December to settle their business taxes because of the amounts involved, with written agreements allowing them additional time to pay. The City Treasurer’s Office had also issued demand letters following the Supreme Court decision.

Councilor Jose Molintas raised concerns over locators that had left Camp John Hay without settling their obligations. He said the council would invite representatives of the John Hay Management Corporation (JHMC) and the Bases Conversion and Development Authority (BCDA) to a future session to discuss the matter.

The P225-million claim forms part of the city’s longstanding demand for compliance with Conditionalities 9 and 10 of City Council Resolution 362-1994, which provide for the city’s share from gross income and lease rentals generated within the John Hay Special Economic Zone.

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In November 2025, Mayor Benjamin Magalong said the City Legal Office was preparing a complaint against BCDA over the alleged non-implementation of the 19 conditionalities imposed by the city in 1994. /cb