MANILA, Philippines – The Securities and Exchange Commission (SEC) has sought a reversal of the Court of Appeals’ (CA) decision that allowed Camp John Hay’s private developer to sell condotel units.
In a statement, the SEC said it filed on June 28 a motion for reconsideration regarding the CA’s ruling that favored Camp John Hay Development Corp. (CJHDevCo) and Camp John Hay Suites Corp. (CJHS).
SEC chairperson Teresita J. Herbosa said they “hope that CA finds merit in the arguments presented by the SEC in its motion for reconsideration.”
“Otherwise, the CA decision, as it stands presently, hamstrings the SEC’s efforts at weeding out investment schemes not registered with the SEC to the detriment of the investing public,” she added.
Last month, the appellate court allowed the private developer of Camp John Hay in Baguio City to proceed with the sale of securities for the operation of The Manor Hotel.
The CA’s Sixth Division granted the petition of CJHDevCo, which permanently enjoined the SEC from implementing its cease-and-desist order against the sale.
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“The case is just one of the latest in the SEC’s continued battle to safeguard the public from falling victim to unlawful business schemes,” the corporate regulator said.
Until CA resolves the motion for reconsideration, the cease order against CJHDevCo and CJHS remain effective, SEC said.
State-run Bases Conversion and Development Authority earlier claimed that the sale of the units of The Manor and The Suites with leaseback or money back arrangements should be regarded as investment contract or sale of securities, which requires prior registration with the SEC.
But CA said the SEC erred in its findings, noting that the sale of the units with leaseback or money-back arrangement does not include investment of money.