CEBU CITY, Philippines — The controversy surrounding the proposed inclusion of the Asian College of Technology International Educational Foundation (ACTIEF) Pit-os campus in the Cebu City scholarship program has taken another turn after the Office of the Ombudsman declined to issue a ruling on the dispute.
The development leaves unresolved a contentious question that has divided the Cebu City Council: Can the city government legally enter into a scholarship agreement with ACTIEF while concerns surrounding the school’s past transactions, accreditation requirements and possible conflict-of-interest issues remain?
The issue traces back to the City Council’s April 2026 decision to reject an agreement that would have allowed ACTIEF’s Pit-os campus to participate in the city’s scholarship program.
The proposed arrangement, authored by Councilor Alvin Arcilla, would have authorized Mayor Nestor Archival to enter into a memorandum of agreement with ACTIEF. Under the proposal, qualified scholars would receive ₱10,000 per semester, while students from northern mountain barangays were also proposed to receive a ₱10,000 annual transportation allowance.
The proposal was narrowly defeated, 8–7, after several councilors raised questions over the school’s documentary compliance, accreditation process and potential conflict-of-interest concerns.
Why ACTIEF remains controversial
The latest dispute cannot be separated from ACTIEF’s long-running history with Cebu City’s scholarship program.
The school previously became the center of a controversy involving former Cebu City councilor and ACT founder Rodrigo “Bebot” Abellanosa, after the Ombudsman found issues involving his participation in the city’s scholarship transactions while he was a public official.
Historical records show that Abellanosa signed a 2010 scholarship agreement involving ACT while serving as a city councilor and later signed another agreement on behalf of ACTIEF in 2011. The controversy eventually resulted in Ombudsman proceedings involving alleged conflict of interest.
The dispute had serious consequences for students. At one point, ACT scholars reported difficulties obtaining transcripts and other academic records amid a dispute over unpaid tuition obligations between the school and the city government. Earlier reports placed the city’s outstanding obligation to ACT at about ₱135 million.
That history is now being cited by councilors opposing the proposed ACTIEF Pit-os arrangement as a reason for demanding greater safeguards before public funds are committed again.
The 2026 vote
The April vote was not simply a rejection of the school.
Supporters argued that the Pit-os campus could provide much-needed access to higher education for students from Cebu City’s mountain barangays, where students may face long and costly trips to schools in the city proper.
Opponents, however, questioned whether the school had satisfied all of the requirements for accreditation under the city’s scholarship program.
The council’s committee on laws and styling reportedly identified gaps involving documentation and the accreditation process, while also raising concerns about possible legal exposure for council members who approved the agreement despite unresolved issues.
Mayor Nestor Archival subsequently said the rejection did not necessarily mean ACTIEF was permanently disqualified. Instead, the school was urged to resubmit its application and complete the necessary documentary requirements.
That distinction is important: the council’s vote effectively killed the proposed agreement at that point, but it did not necessarily close the door on ACTIEF seeking accreditation again.
The controversy widens
The scholarship dispute also triggered another controversy after students were transported to Cebu City Hall during the council deliberations.
Some students reportedly believed they were attending a scholarship orientation but instead found themselves at the session where the ACTIEF accreditation proposal was being debated.
Councilor Mikel Rama subsequently sought a multi-agency investigation, raising questions involving child protection, parental consent and the possible use of students in a political or legislative dispute.
That matter has since moved forward.
The Office of the Ombudsman-Visayas recently endorsed a Cebu City Council resolution to the Department of Education Region 7, directing the agency to conduct a fact-finding investigation into the alleged mobilization of students. The Ombudsman asked DepEd to report its findings.
The investigation is expected to examine whether minors were improperly brought to the City Hall proceedings and whether applicable child-protection and education rules were followed.
A scholarship program caught between access and accountability
The ACTIEF controversy highlights a difficult balancing act for Cebu City.
On one side are students from low-income and geographically isolated communities who need affordable access to college. Supporters of the Pit-os proposal argue that bringing a participating school closer to upland communities could reduce transportation costs and make higher education more accessible.
On the other side are questions about how public scholarship funds should be administered, how participating schools are accredited and what safeguards should apply when government officials or their relatives have ties to institutions seeking public contracts.
The city is also considering broader changes to its scholarship system.
A separate proposal would expand eligibility to certain qualified students from private schools, while also strengthening the evaluation of participating schools by requiring reviews of their permits, licenses, accreditation, academic performance, facilities and faculty qualifications.
Those proposed reforms could ultimately become more significant than the ACTIEF dispute itself.
For now, however, the key question remains unanswered: with the Ombudsman declining to rule on the ACTIEF scholarship deal, will Cebu City simply move on—or will the unresolved legal and accountability questions return when ACTIEF seeks accreditation again?
And with the Ombudsman now also asking DepEd to investigate the student-mobilization controversy, the ACTIEF scholarship saga may be far from over.
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