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The PWU Virtual Learning Environment System (VLES) was developed for students and faculty alike for them to experience various non-traditional modes of educational delivery. This controversy actually got me remembering about my former female colleague back when both of us were still working our way through college as service crews of one of the very popular fast-food chains in the country. It was very evident that she was determined to finish college since it was quite difficult for women to be working students.
I remembered the time when she mentioned her appreciation towards PWU's registrar and administration who gave her many opportunities to make-up for her incomplete and failing grades. Thus, this controversy involving her school has some sort of personal effect on me and I'm sure that some of my readers are also interested to know how I weigh in on this controversial issue. Under the Joint Venture Agreement, the entire net (after debt) value of PWU was appraised at P1.12 billion, and Tanco's 40% came up to P448m. Let me now end this lengthy sharing of my research by knocking on everyone's heart, especially the alumni of PWU and JASMS, and requesting for all your support towards the unfairly treated underdog of this incident.
Ross is the Pambansang Blogcaster ng Pilipinas - An Information and Communication Technology (ICT) Professional by profession and a Social Media Evangelist by heart. He blogs as an advocacy to help the country in making itself known as a prime tourist destination to prove that it is really more fun in the Philippines. The system is constantly evolving to make courses offered by the University accessible in the Internet anytime and anywhere.
There were quite a number of unverified rumors spreading online and it was sort of difficult to verify the veracity of the accusations coming from questionable sources. She was a student at PWU, and I remember that so vividly because she would often report to work still wearing her school uniform bearing the school logo before she would change to our service crew outfits. It was hard enough for men to squeeze in some study time in our work schedule, what more for women who are more fragile. Eusebio Tanco, owner of STI, offered to help PWU in 2011 by coming in as an investor and offering P450m for a 40% stake in Unlad Resources Development Corp., a Benitez family holding company that owned some of the land and assets of PWU.


PWU assets would be exchanged for shares in Unlad under a tax-free property-for-share swap that was allowed under the Tax Reform Act of 1997, after which Tanco would get paid for the money he advanced, with shares that PWU would get in Unlad under the tax-free swap.
Tanco was given 6 out of 14 seats (the Benitez family retained 8 seats) and participated in the management of Finance, HR, and Marketing, while the Benitez family managed academics, in order to maintain the strong educational tradition they had begun when the school was founded in 1919.
Tanco promised that under his management, enrollment would rise from 4,000 to 10,000, but I guess promises were really made to be broken since within the three years of the joint venture, after high marketing expenditures of over P23m, enrollment did not significantly improve, increasing by an average of 300 students per year. Tanco's lawyers and financial managers were unable to help Unlad get the BIR to approve the tax-free swap. Tanco communicated that it was a done deal, even if he did not consult previously with the JASMS community (alumni, parents, and faculty).
We all know who's obviously the bad guy of the story, and it would be a waste to let the schools fall in the hands of those with questionable intentions.
It has successfully collaborated with all forms of media namely print, radio and television making it the most diverse multimedia organization. Unlike today when you can simply research online for some information, back in our days we would have to spend a considerable amount of time in the school library looking for those very elusive books containing the information we need. The P450m investment was used to pay off the bank debt of P223m, buy back JASMS land from Jardine (P170m), and lend PWU working capital. During this time, tension mounted as the Benitez struggled with Tanco managers to maintain quality educational programs. The parents and teachers were extremely upset as the development would put their young children at risk (about 20% are special-needs kids). He launched an ongoing media offensive against the Benitez family, timed for the Christmas holidays when the courts are closed. Benitez' leadership, the school's accreditation levels are being improved and the school of music has been designated as a Center of Excellence.
As the deal was a joint venture, Tanco signed a document which waived interest on his loans to PWU, which I have seen with my own eyes.


While Tanco paid for the PWU loan of P230m, he put in only P20m into capital expenditures, using the other P170m, which should have gone into additional capital expenditures, to buy a 3,500 sqm portion of the previously foreclosed land beside the JASMS campus. Conrad Benitez wrote the Boards of Unlad and PWU saying that he felt it was not possible to effect the Joint Venture, as it was premised on a tax-free swap that was not viable without the prohibitive tax burden. He served PWU a notice of default after learning of the plans to end the joint venture, but the notice did not follow proper legal procedure and was thus not valid. He suggested instead that the parties look for ways to terminate the relationship amicably so that obligations made could be settled reasonably, and they could go their separate ways.
He then called a PWU board meeting that was not attended by enough directors to make it a valid meeting, declared the Benitez directors to have resigned, and appointed his own representatives to the board in place of the Benitez directors. Tanco signed amendments to the original agreements suspending interest and penalties on his loans, therefore his demand for P925m (including P125m in legal fees) is unfounded and without merit. PWU is committed to making good on its debt, but the amount of the demand is unreasonable and not commensurate to the amount borrowed. This provoked protests from PWU and JASMS students, faculty, and alumni who have openly voiced their support of PWU-JASMS, its chairwoman, and its president. According to this Manila Bulletin article, the PWU Alumni Association, JASMS Parents Association, faculty officers and staff, and the PWU student organizations all pledged support for the Benitez family.
It is our view that such an unconscionable act by the STI Group would be inimical to our interests as stakeholders and the public interest as well,” said the PWU-JASMS Community in its statement.



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