STI-Benitez row worsens

MANILA, Philippines - The squabble between the Tanco-led STI Holdings Inc. and the Benitez family continues to get worse.

 In the latest edition of the two parties’ heated exchange, STI now claims that the Benitez Group mismanaged Philippine Women’s University (PWU) pushing the institution to its near bankruptcy state.

 In a statement, STI said the Benitez Group is responsible for the deterioration and near bankruptcy of PWU, and is “trying to stir public emotions to mask its refusal to pay what it owes STI Holdings.”

 Monico V. Jacob, STI president, said It was also the PWU board under the Benitez Group that approved the so-called “commercialization” of Jose Abad Santos Memorial School (JASMS) in Quezon City back in mid-1990s, receiving P250 million from Jardine Land Inc. and Northpine One Residences Inc.

“Up until last week when we cited them in default, it was the Benitez Group that called all the shots in PWU. We were a minority and only decided to accept their prepared resignations as provided in our agreements when it became clear we would not be paid,” Jacob said.

Jacob said the Benitez Group wanted to rescind their agreements with STI early this month without offering any way of paying STI.

STI said it was supposed to get paid through shares of stocks.

STI claimed that it bailed out PWU from foreclosure in 2011 and lent more funds to fix the school premises which were falling apart, and put in place support systems in accounting and finance, among other things, that were virtually non-existent.

The Benitez family, in its defense, earlier said it is contesting a default notice issued by STI and plans to take legal action to fight what it described as the education firm’s ‘baseless’ claims and ‘illegal’ takeover.

“They got P250 million for JASMS and did not deliver. They got more than P400 million from STI and now want out of the agreement without paying. The students pay and do not get the campus and education they paid for,” Jacob said.

“Legacy should make one proud and we question what the Benitez Group has achieved towards this end,” he said.

The Benitez Group has also denied they resigned from the board and alleged it was STI that was trying to commercialize its Quezon City campus.

“To show who is telling the truth, we released their resignation letters. On the JASMS issue, we released the board minutes they signed showing it was the Benitez board that was leading the charge,” he added.