Big business’ buying spree of schools welcomed

MANILA, Aug. 25 (PNA) -- Big business has been acquiring large colleges and universities, and this has been gladly received by an educator-turned-lawmaker.

"We definitely welcome the growing investments of business conglomerates in higher institutions of learning. There is no question that our private colleges and universities desperately need fresh capital to modernize and upgrade the quality of instruction that they provide," Cebu Rep. Eduardo Gullas said.

"We have to expand and strengthen state-run colleges and universities for those who cannot afford private college schooling, and at the same time build up private schools for those who have the wherewithal," Gullas said.

"We need the financial resources of big business to help put in check the deterioration of tertiary education in the country," said Gullas, whose family owns the University of the Visayas based in Cebu City.

Gullas made the statement shortly after mall magnate Henry Sy Sr. joined the bandwagon of tycoons who have acquired private universities, by taking control of the National University (NU) in Manila.

SM Investments Corp. president Harley Sy said the Sy family bought a 60 percent stake in the 108-year-old university in June for an undisclosed amount from the heirs of the late Don Mariano Fortunato Jhocson.

The younger Sy said the Sy family intends to transform NU into one of the country’s finest universities.

In February, business leader Ramon R. Del Rosario Jr.'s Philippine Investment-Management Inc. (Phinma) spent P458.4 million to acquire 80 percent of the University of Nueva Caceres based in Naga City, Camarines Sur.

It was the third school acquired by Phinma in as many years. Phinma previously bought 100-percent of Cagayan De Oro College for P310 million, and 80 percent of Cabanatuan City-based Araullo University for P350 million.

Other recent cases of big business buying schools include Alfonso Yuchengco’s acquisition of 83-year-old Mapua Institute of Technology, Lucio Tan’s entry into 80-year-old University of the East and Emilio Yap’s investment in 101-year-old Centro Escolar University.

The poor ratings obtained by top Philippine schools compared to other Asian institutions of higher learning indicate the rapid decline in the quality of tertiary education in the country.

In a previous Asiaweek magazine survey, the University of the Philippines ranked 48th among Asia’s Best Universities, followed by De La Salle University and Ateneo de Manila University, which ranked 71st and 72nd, respectively.

Members of Congress have also expressed alarm over the spread of substandard schools that produce graduates with dismal passing rates in professional eligibility tests. In the last five years, the average passing rate across 33 professional fields requiring licensure tests was only 45 percent, according to the Professional Regulation Commission.

A previous Asian Development Bank study indicated that the Philippines already has too many colleges and universities, not all of which offer good-quality education.