Benitezes urge STI to reconsider PWU foreclosure

MANILA, Philippines - The Benitez family, the majority owner of the 96-year-old Philippine Women’s University (PWU), has cried foul over the move of Eusebio Tanco-led STI Holdings to foreclose campuses in Manila, Quezon City and Davao.

In a statement, the Benitez Group appealed yesterday to Tanco’s camp to reconsider its petitions to foreclose the PWU campuses.

“The foreclosure petitions reveal STI Holdings’ blatant disregard for the school, the staff, and the students, who will be the most affected by this move. We call on STI Holdings and Mr. Eusebio Tanco to seriously consider their legal actions and take into account the welfare of the employees and the students of PWU and JASMS (Jose Abad Santos Memorial School),” PWU media director Lydia Benitez-Brown said.

STI filed separate foreclosure petitions against PWU properties, particularly the Taft and Indiana campuses in Manila, the JASMS Quezon City campus, and a property in Davao under Unlad Resources Development Corp., the corporate arm of the Benitez family.

Brown said the foreclosure move against the PWU and JASMS campuses would hurt the schools and their enrollment.

“Since the problems with STI began, we have seen a slight decrease in enrollment. However, the moves to foreclose on the school campuses rather than find an amicable resolution to the problem are clearly inimical to the interest of the school,” she said.

Brown claimed STI Holdings is putting “business ahead of education.”

“This foreclosure issue merely highlights the concerns we had last year, concerns shared by the PWU-JASMS community, that the not-for-profit character of PWU and JASMS would be in conflict with STI,” she said.

“Nowhere is that more evident than now, with this foreclosure issue foisted over our heads. The welfare of the employees and students of PWU and JASMS were clearly the last thing on STI’s mind, and the future of the schools evidently a non-consideration as far as Mr. Tanco is concerned,” Brown added.

STI’s move to foreclose the PWU properties stemmed from the latter’s alleged failure to pay almost P1 billion in accumulated loans, interest and expenses.

STI had acquired PWU’s loan with BDO worth P223 million in 2011, and loaned another P198 million to Unlad.

Tanco’s group already declared the Benitezes in default on their obligations under the cooperation deal and threatened to take over the university should they fail to pay the accumulated amount of P928 million.

The Benitez family earlier proposed a P550-million settlement to end the dispute, an amount which it called as “fair and just.”

The Benitez Group, however, said STI rejected the offer and responded by filing for the foreclosure of school properties.