Camp John Hay developer faces SEC certificate revocation
MANILA, Philippines – Camp John Hay Development Corporation (CJHDevCo), the developer of Camp John Hay in Baguio City, is facing the revocation of its certificate of incorporation due to its failure to submit its financial reports from 2003 to 2011.
The Securities in Exchange Commission (SEC)has issued the warning against CJHDevCo as early as July 2013.
In a letter dated on July 30, 2013, SEC acting director Ferdinand Sales wrote to CJHDevCo Executive Vice President Alfredo Yniguez, "We informed you that this office is constrained to require the submission of your latest due financial statements, not only because we have been receiving complaints from the public, but also due to the fact that you have continuously failed to submit reports for more than 5 continuous years."
Sales further wrote that CJHDevCo's failure to submit its reports for more than 5 years is "sufficient ground to revoke the corporation's certificate of registration as provided under existing laws and regulations on reportorial requirements."
A company with a revoked registration is considered not in operation.
On December 23, 2013, a subsequent SEC order was released to companies with similar issues and they were given until December 2015 to appear before the SEC.
Sales also said that the "submission of reports is obligatory upon all registered corporations" and that the commission "has a continuing interest in the corporation's compliance with statutory requirements of the law."
Apart from the SEC, other government agencies have the right to know the nature of business, financial condition, and operational status of a corporation which is a grantee of a government license, the regulator said.
In 2013, the SEC revoked the registration of over 10,000 companies for not submitting reports which is construed as "non-operation."
The Bases Conversion and Development Authority (BCDA) is the government agency mandated to develop Camp John Hay.
In May 2012, BCDA terminated the lease of CJHDevCo over the 247-hectare Camp John Hay Economic Zone for its failure to perform its obligations and for defaulting on its lease payments despite 3 restructurings.
BCDA and CJHDevCo are now under arbitration. – Rappler.com