CHED steps into PSBA-QC board war, says college can't be shut midyear

The Commission on Higher Education (CHED) told the Philippine School of Business Administration - Quezon City that outright closure of the school cannot be done in the middle of the academic year.

The regulator's reminder was made public in an open forum held at the college campus Monday morning even as some stockholders are trying to shut down the school on October 18 and take control from incumbent officials.

CHED director for the National Capital Region, Dr. Catherine Castaneda, in a letter to PSBA-QC dean Raul Addatu, said, "(A) higher education institution may for (valid) cause voluntarily initiate outright closure of all its degree programs at the end of an academic year provided that the conditions for voluntary closure are complied with."

Castaneda quoted in her letter dated Sept. 26, Section 62 of the Manual of Regulations for Private Higher Education Institutions.

Open forum

PSBA-QC officials made public Castaneda's letter during the open forum held at the business school's campus along Aurora Boulevard in Quezon City.

The open forum ensued as Dr. Juan D. Lim and Dr. Jose F. Peralta caused the publication of a Notice of Closure in broadsheets, causing worry among the school's some 4,000 students and their parents, as well as faculty and non-teaching staff.

The notice said the school will be shut down on October 18, "due to serious business losses that have been sustained for the past eight (8) years, including the recently concluded fiscal year ending on 31 May 2013, and to the fact that the School is being operated by Atty. Benjamin P. Paulino, without an independent permit from the CHED, and without authority from PSBA Inc. - QC, who is the grantee of recognition by CHED."

The notice also said the board of directors will terminate the employment of:

- All Academic personnel, effective at the close of business on 8 November 2013; and
- All Non-Academic personnel, effective at the close of business on 29 November 2013.

Some college officials, led by the current president lawyer Benjamin Paulino and Dean Addatu, said they intend to keep PSBA-QC open even beyond the current school year.

Tight finances

But Paulino must contend with the steps the other  stockholders have taken in recent weeks, including a board resolution ousting him as president and removing him as an official signatory of checks and other financial documents.

Paulino admitted in the open forum that he is now unable to access the school's funds deposited with the United Coconut Planters Bank (Cocobank) because his opponents on the board, Lim and Peralta, furnished Cocobank a copy of a resolution removing him from his post.

Paulino said they will recognize school fee payments deposited into the school's Cocobank account, but he said they have no access right now to those funds.

He then asked students and parents to make their payments to his authorized personnel, so the incumbent officials will have funds they need to keep the school open.

Legal battles

Paulino said faculty, students, and parents may undertake their separate legal actions so that the college could stay open.

Outgoing PSBA-QC student council president Gamaliel Sampedro said his council and the newly-elected incoming council have decided to hire their own lawyer to stop Lim and Peralta from closing their college.

Pino said a court injunction would be the course of action needed.

With the CHED guidance from Director Castaneda, Paulino and his supporters would have at least until the end of the current school year to either stave off further or thwart the legal maneuvers of Peralta and Lim.

The legal skirmishes between the Paulino and Lim camps have been going on for years and in recent months have involved at least nine civil and criminal cases, according to Evans Pino, PSBA-QC director for national service training.

Classes to resume November 6

In the meantime, Dean Addatu said the operations of the college will continue. He also cited the results of a recent CHED inspection visit, which he said resulted in a favorable assessments of the college's academic offerings. Addatu said the CHED urged PSBA-QC to pursue higher accreditation levels.

Pino said classes in the second semester are scheduled to start on November 6. He added that regular schedules will be on Tuesdays to Fridays while Mondays and Saturdays will be slots usually for the working students who have only one or two days to spare for going to school.

During the open forum, Paulino said his camp is in talks in Hong Kong with a foundation for possible support in case Peralta's group is no longer interested in maintaining their stake in PSBA-QC.

Paulino repeatedly referred to Peralta and Lim as "minority directors". He recalled that originally, the five incorporators of PSBA-QC had 1,000 shares each and then later, after a 200 percent stock dividend was declared, those shares increased to 3,000 shares.

However, Paulino also said there is another shareholder in PSBA-QC and that is PSBA - Manila as a corporation. Paulino said PSBA - Manila has 97 percent of the outsanding shares of stock of PSBA-QC and the proxy for which Paulino said Lim is exercising as board chairman.

Paulino added that that proxy is not for Lim to exercise all on his own because PSBA - Manila has other shareholders aside from Lim.

Campus community views

During the open forum, one gentleman who claimed to be a father of an enrolled student and declined to be identified, said he is now worried about the employment prospects of his son when he graduates from PSBA-QC.  He said the ongoing conflict between members of the board of directors is affecting the college's "reputation" that will come with his son's diploma and credentials.

He narrated how his son came all the way from Mindanao and chose PSBA-QC over other colleges because of its specialization in business education  He lamented how the value of his and his con's sacrifices may have been eroded.

Students inquired about the school's finances and to their queries, Paulino and Pino said the blame is upon the opposite camp who, they claim, have neglected to fund the improvement of facilities and now have barred the school's administrators from accessing the funds deposited with Cocobank.

Faculty members asked Paulino about when the administration will respond in kind to the Notice of Closure the other camp has published. Speaking for the officials present, Pino said that response would come within the week after considering the inputs they received through the open forum.  -- KBK/ELR, GMA News