Deal on city scholars set

T.O.R. MAY BE RELEASED SOON

The Cebu City Council has authorized Mayor Tomas Osmeña to enter into a compromise agreement with Asian College of Technology (ACT) and/or the Asian College of Technology International Education Foundation (ACTIEF) so that the school can release the transcript of records of city scholars that have graduated there even before the city pays its debt fully to ACT.

The city owes ACT P186.34 million representing the tuition fees of its scholars for the second semesters of school years 2014-2015 and 20152016 and the first semester of 2016-2017.

Councilor Joy Augustus Young, deputy mayor for education matters, said several scholars of the city government could not claim their TOR because their tuition has not been paid for.

At least 2,600 scholars were affected by the situation although some of them have reportedly claimed their transcripts with Osmeña's help.

After several discussions, the city and the school finally agreed to compromise.

“As a result of series of amicable discussions and negotiations, the parties have agreed to enter into a compromised agreement. The draft compromise agreement has been reviewed by the City Attorney,” reads a portion of the resolution Young authored.

PROCESS

The city and the school will file before the Regional Trial Court a joint motion for the approval of the agreement within five days after they sign the deal.

The court will then hear the proposed compromise on November 15.

If the court grants the deal, the city will pay ACT the settlement amount within 30 days from receipt of the court order.

ACT, for its part, will secure a bond for the settlement amount for a year within 30 days from receipt of the court order.

“The first party (city) recognizes all its financial obligations arising from the MOA. The second party (ACT/ ACTIEF) undertakes to release the TORs of all its Cebu City scholar graduates even prior to the full payment of the first party,” reads a portion of the proposed agreement.

CLOSURE

Both the city and the school agree that a compromise agreement will settle the case the city has filed against ACT.

The city earlier filed a petition for declaratory relief against the school so that the court could clarify if the city can pay the school, considering that its founder, former Cebu City South District Rep. Rodrigo Abellanosa, was found guilty of grave misconduct for conflict of interest for participating in accrediting schools for the city's scholarship program.

Earlier this year, however, the Sandiganbayan cleared Abellanosa of charges.

“This compromise agreement shall bar any claim, present, future or contingent, that each party, may have against the other on any, demands matter arising from the claims, counterclaims or causes of action subject of, or arising from, or by reason of the filing of the case,” reads the proposed compromise agreement.

ABSTENTION

When the council approved Young's resolution last Tuesday, seven opposition councilors abstained from voting.

These include Councilors Jose Daluz III, Raymond Alvin Garcia, Jocelyn Pesquera, Phillip Zafra, Pastor Alcover, Jr., Eduardo Rama, and Joel Garganera.

All eight administration councilors, however, voted to pass it.

The City Legal Office is supporting the proposed agreement subject to compliance to rules and regulations of the Commission on Audit (COA).

Young said the city and the school have agreed that the payment will not earn any interest.

Garcia pointed out that the agreement should specify which entity the city is entering into an agreement with - the ACT or ACTIEF.

He said the foundation's Board of Trustees has not issued a certification on the proposed compromised agreement.

“ACT which is the corporation is different and distinct from the foundation so which entity is the city entering the agreement with?” he asked.

Young said he will ask the school to provide a certification from the board but under the memorandum of agreement signed in previous years, the foundation is the payee.