P135M payment for ACT scholars stalled anew

A proposed resolution that would have the Cebu city government deposit a P135 million payment for the Asian College of Technology International Education Foundation (ACTIEF) in court got stalled in the Cebu City Council yesterday.

Councilor Margarita Osmena, who heads the budget and finance committee, said  that passing it would preempt an ongoing review of the proposal by the  City Legal Office.

Councilor Gerardo Carillo said some of his colleagues made the proposal after meeting with   lawyers of the school, who said that  Cebu City Rep. Rodrigo Abellanosa divested his shares and is no longer an owner.

“For two consecutive sessions, the committee has reached a consensus for the city to file an interpleader to the court and deposit the entire amount due to ACT,” Carillo said in a privilege speech yesterday.

The  legal remedy would have one  party deposit what he owes in court  in view of  reservations and conflicts over the obligation.

The party claiming payment would have to prove in court that it is entitled to the amount.

The Cebu City government owes P135 million to ACTIEF for students who enrolled there under scholarship grants of Cebu City at P10,000 per semester..

The school won’t release the Transcript of Records (TOR) of  scholars who graduated last March until the bill is settled by  the Cebu City government.

City officials are hesitant in paying  since the Ombudsman rendered a decision finding Congressman Abellanosa  guilty of a conflict of interest.