Rama Eyes Escrow for P135-M Obligation to School

Cebu City Mayor Michael Rama has said he is considering putting in escrow the estimated Php135 million the city government owes a school under its scholarship program.

Rama said the city government is willing to pay for the obligation under its scholarship, but they have to wait until the court determines the legitimacy of the payment to the Asian College of Technology International Education Foundation (ACTIEF).

ACTIEF was formerly known as the Asian College of Technology (ACT).

“I am entertaining to place the money in escrow. We are in good faith and we have always been ready for the payment,” Rama said.

Cebu City Attorney Jerone Castillo said that under excrow, the money is deposited in the bank until the city receives instructions from the court on whether or not to release the money.

The city brought the issue on the payment before the court after the Office of the Ombudsman found Cebu City south district Representative Rodrigo Abellanosa guilty of grave misconduct and conflict of interest for sitting both as trustee-president of the school and as a city councilor at the time the scholarship program was implemented.

The Ombudsman also ordered Abellanosa’s dismissal as congressman.

He also signed the school’s accreditation for the scholarship program.

The estimated Php135 million the city owes ACT represents the tuition fee for the scholars, including the Php26 million paid for in December for the second semester of last school year.

Abellanosa has appealed the Ombudsman decision, saying it is the House of Representatives and not the anti-graft office that has jurisdiction over the issue. (PNA) LGI/EB/EDS