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LANDMARK. The Manor, previously managed by CJHDevCo before the BCDA's takeover, remains a key revenue-generating landmark within Camp John Hay.
Mia Magdalena Fokno/Rappler
The case of Camp John Hay now stands as a sobering reminder of how ambitious public-private ventures can unravel leaving behind unanswered questions, legal gray zones, and a community caught in the crossfire
BAGUIO CITY, Philippines – The Department of Justice (DOJ) is coming down hard on the Sobrepeña-led Camp John Hay Development Corporation (CJHDevCo), forming a special task force to investigate and potentially prosecute alleged fraudulent acts and misrepresentation linked to the development and sale of properties within the 247-hectare Camp John Hay Special Economic Zone (JHSEZ) in Baguio City.
In Department Order 242, signed by Justice Secretary Jesus Crispin Remulla on April 11, and obtained by Rappler through a verified source, the DOJ ordered the creation of a special task force composed of state prosecutors and National Bureau of Investigation (NBI) agents to conduct a case build-up against stockholders, directors, officers, and/or employees of CJHDevCo — as well as any other individuals allegedly involved in the long-disputed Camp John Hay transaction.
The order authorizes the team to “effectively secure and interview witnesses” and coordinate with relevant government agencies. The task force will be chaired by DOJ Undersecretary Nicholas Felix Ty, with Senior Assistant State Prosecutor Mary Jane Sytat as vice chair, supported by prosecutors from the Office of the State Prosecutor and NBI lawyers. They have been given 60 days to submit a report.
The DOJ’s move follows decades of tension between CJHDevCo and the Bases Conversion and Development Authority (BCDA), which owns the property. CJHDevCo, led by businessman Robert John Sobrepeña, signed a lease with BCDA in 1996 to redevelop the former American rest and recreation base into an eco-tourism and commercial hub.
CJHDevCo built The Manor, The Forest Lodge, the Camp John Hay Golf Club, and various residential units, but the deal soured when CJHDevCo ceased paying lease obligations in the early 2000s, citing BCDA’s failure to provide tax incentives. Arbitration ensued.
In 2015, an arbitral tribunal ruled that both parties breached their contract. It ordered BCDA to refund CJHDevCo P1.42 billion and CJHDevCo to return the leased area. The Supreme Court affirmed this ruling in October 2024, making it final and executory.
On January 6, 2025, BCDA formally reclaimed the estate, with the Baguio City sheriff enforcing the order. Since then, interim managers have taken over operations of the golf course and hotels. However, controversies persist.
CJHDevCo and some affected investors, including owners of condominiums, country homes, and golf shares, have decried what they describe as abrupt padlocking of homes and revocation of club memberships. On April 4, Sobrepeña wrote a letter to President Ferdinand Marcos Jr. offering to waive CJHDevCo’s P1.42 billion arbitral award in exchange for the government’s recognition of the rights of third-party investors and sub-lessees. The offer remains unanswered.
In the meantime, the Securities and Exchange Commission (SEC) has previously flagged some CJHDevCo arrangements, such as long-term lease-back guarantees, as possible violations of securities laws.
BCDA, for its part, maintains that the Supreme Court has ruled with finality. As of March 2025, it reported that it had signed over 100 new residential leases with property owners inside John Hay, including several Korean nationals who were previously affected by the transition. CJHDevCo, however, claims that hundreds of owners, particularly condominium buyers, have not signed with BCDA and continue to contest their removal.
Adding to the signs of operational uncertainty, the Camp John Hay Golf Club announced that it would postpone its Annual Members’ Meeting, originally scheduled for May 9, 2025, to July 8, 2025. In a letter signed by Corporate Secretary Gilbert Raymund T. Reyes, the club cited the ongoing turnover of facilities to BCDA and the need to comply with SEC documentation requirements.
“The lives of these homeowners, retirees, and investors are in jeopardy because they trusted in the government’s promise,” Sobrepeña wrote in his letter to the President. “Camp John Hay should not become a graveyard for their dreams.”
Whether or not the DOJ probe leads to criminal charges, the case of Camp John Hay now stands as a sobering reminder of how ambitious public-private ventures can unravel leaving behind unanswered questions, legal gray zones, and a community caught in the crossfire. – Rappler.com
