Council allows Osmeña to settle case with ACT
The Cebu City Government is set to enter into a compromise agreement with Asian College of Technology International Education (ACTIEF) to settle the case that the City had filed against the school to determine if it would be legal to pay what it owed in scholars’ tuition.
With seven abstentions, the City Council authorized Mayor Tomas Osmeña to sign the compromise with ACTIEF to put an end to the case.
The previous administration withheld the payment pending a petition for declaratory relief that the City filed against ACTIEF in court to determine if the law would allow it to pay the school. This, after the anti-graft office found Rep. Rodrigo Abellanosa (Cebu City, south), then a city councilor, liable for conflict of interest.
Abellanosa was the trustee and president of ACTIEF when the school entered into an agreement with the City for the scholarship in 2011.
Under the agreement, ACTIEF will accept from the City P56 million, which represents the tuition of the first and second semesters of academic year 2014-2015 as full settlement of the claims, demands and causes of action of the City.
ACTIEF initially billed the City P136.9 million, which represents the payment for first and second semesters of academic year 2013- 2014 and 2014-2015.
A separate billing was also sent to the City, which represents the first and second semesters of academic year 2015-2016 amounting to P23.2 million.
In return, ACTIEF will release the pending credentials of city scholars who graduated from their school.
Both parties will also agree to dismiss the present case once the compromise agreement will be signed and submitted to court.
“This compromise agreement is executed by the parties hereto for the purpose of compromising and ending the case, and of putting a bar to any other future claims, demands or suits based upon, arising from, or in connection with the case and the subject matters thereof,” read portion of the agreement.
During the council’s session last Tuesday, Team Rama Councilors Raymond Garcia, Jocelyn Pesquera, Joel Garganera, Eduardo Rama Jr., Pastor Alcover Jr., Phillip Zafra and Joey Daluz III abstained from voting on the resolution authorizing Osmeña to sign the agreement.