AT LEAST three priests who were holding sensitive positions at the University of Santo Tomas were sacked last Tuesday for alleged mismanagement and irregularities.  Relieved were Edmund Nantes, prior provincial of the Philippine Dominican Province and also UST's vice chancellor.  Rector Ernesto Arceo, O.P. and Vice Rector Juan Ponce, O.P. were also asked to resign.  Carlos Aspiroz Costa, O.P., the Master of the Order of Preachers, accepted the resignation of the three priests.

   Aspiroz was in Manila for a canonical visit, but sources in the university said the grand chancellors's visit was maintly to stop the expansion of the UST hospital.

   "The master of the order arrived in Manila to relieve the officials," the source said.

   But in a circular issued last Sept. 11, the university said the three priests' resignation would allow the appointment of new managers.

   "The Master believes that a new leadership team will be better able to create the consensus necessary for future developments at the University and Hospital, especially as UST begins preparations for its 400th anniversary in 2001," said university Secretary General Isidro Abano, O.P., in a circular that was also read during the meeting of deans, regents and department heads.

   The same source told reporters that some priests were among the investors in the UST hospital, and that their investments came to more than P1 million.

   "This bothers the Holy See," the source said.

   It also appeared that the school was seeking a syndicated loan with the Land Bank of the Philippines to expand the hospital, which would cost  P3 billion.  The expansion program includes the construction of a 19-story tower to house doctors' clinics and other medical facilities, since thy wanted the hospital to be fully separated from the university.

   Aside from the alleged irregularities, the hierarchy of the Dominican Order was reportedly unhappy with the way the university was being managed after it failed to secure the global certification recognizing its compliance with the high standards of education.

   With the resignation of the three priests, the grand master named Rolando de la Rosa, O.P., acting UST rector while Quirico Pederegosa,O.P., had been named vicar of the university and was asked "to remain in the office for the foreseeable future."

   Pedregosa was the master's assistant for Asia-Pacific and had served as prior provincial of the Philippine Dominican Province.

   De la Rosa, will remain acting rector until Pope Benedict XVI appoints the new rector. De la Rosa served as UST rector and was previously chairman of the Commission on Higher Education. (This article was posted by Zinnia G. Giron)

Dear Classmates and Fellow Alumni:

     By now many of you have heard the disturbing news that has befallen our Alma Mater. The current leadership has been dismissed. As per the USTMAAA/ FOUNDATION Executive Director, Dr Stella Evangelista’s posting on the latest update about UST shocking development:

     I have been informed of the forced resignation of the Rector Magnificus, Rev. Fr. Arceo, The Vice-Rector Rev. Fr. Ponce and the Father Provincial Rev. Fr. Nantes. Their resignation was effective SUNDAY, Sept. 9th.  As of yesterday, Rev. Fr. Roland dela Rosa has been appointed Acting Rector and Rev. Fr. Larry Singian as Acting Father Provincial.  Fr. de la Rosa will be calling a meeting of the UST Hospital Board.  Just today the school has broken its silence and issued confirmation of such events. Its communication is attached for your personal review. Unfortunately, the University is in a state of incommunicado and no further explanation has been made available.  While the USTMAAA & FOUNDATION are unaffected directly by the leadership changes, we are troubled by any problems encountered by the University.  Once authenticated information is made available, it will be passed along to all.  In previous communications, I have alluded to some of the struggles of our University as parents of children.  When the parents are in a state of unrest, the children feel a sense of dismay and unease. The current state of affairs gives the alumni such a feeling.  I ask for your tolerance at this difficult time in our University’s history. In the immediate interim, let us remain steadfast in our loyalty to our Alma Mater and its missions. The USTMAAA and FOUNDATION will continue to work toward making our Alma Mater a school noted for academic excellence and will pledge continued support to the indigent patients of its Hospitals and to national building with the neediest of our poor in mind.  I will await further information and communicate with you at that time.  

With warm regards,

F.C. Dante Gapultos, Jr. M.D. F.A.C.O.G

President, USTMAAA.

OFFICE OF THE

SECRETARY GENERAL

UNIVERSITY OF SANTO TOMAS

MANILA, PHILIPPINES

                                                                                                                    September 11, 2007

CIRCULAR NO. 20; SERIES: 2007-2008

TO ALL DEANS, REGENTS, PRINCIPALS,

     AND HEADS OF DEPARTMENTS:

      The Master of the Order of Preachers, Fr. Carlos A. Azpiroz Costa OP, as Grand Chancellor of UST, has accepted the resignations of the Vice Chancellor, Fr. Edmund Nantes OP, the Rector, Fr. Ernesto Arceo OP, and the Vice-Rector, Fr. Juan Ponce OP, of UST.  The Master believes that a new leadership team will be better able to create the consensus necessary for future developments at the University and Hospital, especially as UST begins preparations for its 400^th Anniversary in 2011.  With the best interests of the University and Hospital in mind and with desire to assist with those preparations, the Master has asked his Vicar over UST, Fr. Quirico Pedregosa OP, to remain in office for the foreseeable future.  The Master has also named former Rector of UST, Fr. Rolando V. De La Rosa OP, as Acting Rector (Article 12 of the General Statutes of UST) until the office can be filled in accordance with Article 10 of the General Statutes of UST.

     The redevelopment project for the UST Hospital will remain an important priority of UST. Further studies will need to be undertaken in order to find the most effective redevelopment plan. The goal of redevelopment will be to ensure that the UST Hospital can continue to offer the highest educational standards of formation for future doctors and other allied medical practitioners and the highest level of medical care and services in both its Clinical and Pay divisions.

                                                                                   (SGD) FR. ISIDRO C. ABANO, OP

                                                                                   Secretary General

Faxed to Dr. Stella Evagelista

Sept 14, 2007

Dear Classmates:
      By now you are aware of the turmoil, that is in progress at UST.  I would like to reassure everyone that as far as our legacy project is concerned, our donation should not be affected. As I read the news item out of the Manila media, I am convinced that our legacy is the right  thing to do for our alma mater. It was quoted that the university lost the global certification for excellence in higher education.  This loss may not be specific to the Faculty of Medicine and Surgery but anything that affects the entire university trickles down to its component parts and such bad image reflects on us, its graduates. Our legacy, the Clinical Skills Facility hopes to augment the academic excellence of the Faculty of Medicine and Surgery.
      To date, we have advanced $10,000 to the University to provide seed money for the architectural planning, etc. Willie Lagdameo who represents me in the Philippines and a member of the Legacy Committee holds the Foundation’s $50,000 check to be handed over to the Dean at the start of the constructions.  He has been in touch with Dean Garayblas-Gonzaga after the Dominican Order turmoil became public and both are confident that this sad happening will not be a barrier to our project.
      I will keep you all updated.
     On another matter, please make every effort to attend the Manila/Cebu/Bohol trip.  Besides enjoying the camaraderie, we will have a celebration of our friendship and memorialize those who have died with a lantern-lighting ceremony at the Maribago Resort  It will be a night to remember.

Sincerely,

(Sgd) Cora Gemil.

-----Original Message-----
From: Cenon Alfonso <dodiereynosoalfonso@yahoo.com.ph>
Sent: Wed, 19 Sep 2007 11:21 am
Subject: The Truth about the USTHI Saga

Dear Reader,

   We are sending this email to you so that you can help us spread the truth to all Thomasians, particularly to all those who have a heart in the future of the USTHospital. Please send this to all whom you know have been part and partners of the USTHI.  Please forward this to the USTMAAA, Cardinal Rosales and even to the Holy See.

   We shall extensively quote the very document that contains the declaration and orders of the Master of the Order which he verbally delivered before us during the joint Board meeting last 17 September 2007 in the Rector's Hall.

   We will confine ourselves to the three contentious issues, namely, the separation and incorporation of the Hospital (USTHI), the 3 Billion Hospital Redevelopment Project and Loan, and the Professional Fees.  Because, we were made privy to other surrounding circumstances that may have some significant bearing to the decisions and events of the recent past, we have the duty likewise to make these known to the public.

The Separation and incorporation of the Hospital (USTHI). 

   The UST BOT "failed to secure the permission of the Master of the Order and that of the Holy See" and therefore (the Master) ".... I consider all these transactions to have been unlawful as they lacked my approval and that of the Holy See. (Cann 1291; 1292 Sec. 1; 638 Sec. 3; LCO 609 Sec. I & II).  Both the legal counsels of the University, Atty. Divina, and that of the Hospital, Atty. Rody P. Padlan, who assisted in the process of incorporation of USTHI, will attest to the legality of the incorporation of USTHI according to the Philippines laws.  Be that as it may, it appears that the UST BOT was not aware of the Canon Laws concerned before and during the process of incorporation.  Following the same Canon, all other corporations that have assumed a separate juridical entity from UST like the Benavides Foundation, Inc., the St. Thomas Charity Foundation, Inc.,  the UST Review Center, and the corporation that runs the Isabel Building are likewise "unlawful".  Is this ignorance of the Canon Law?  Obviously, this is not ignorance of Philippine civil laws. Who then is liable?  Certainly, it is not USTHI. Or, is it a case wherein such antiquated provisions of Canon Law that have been relegated to obscurity because they were never practiced by anyone here in the Philippines (not in the recent decades) nor anywhere else in the world but was conveniently used by the some Dominican priests who have an axe to grind against the UST BOT? Be that as it may, the accountabilty and responsibility falls upon the UST BOT, certainly not upon USTHI.

   The public must know that despite this deficiency, upon learning about it, both the UST BOT and the USTHI worked together in order to amend the necessary documents of incorporation in accord with the recommendations of the Commission sent by the Master under the Chairmanship of Fr. Mark Edney, O.P.  Such amendaments in fact was used by the Master, his Vicar and legal counsel through UST BOT last September 17, 2007 to dissolve USTHI.  Despite the lack of canonical approval of the Master and of the Holy See,  it is an undeniable fact that the juridical separation of the Hospital from the University,was the important key of the turnaround of the Hospital from its certain collapse and closure.  If it were not done, the Hospital would have been either closed down  or have been managed by another group that would have closed down its charity division.  IF IT WAS NOT PREVENTED, WAS IT NOT A CLEAR CASE OF LOSS OF CHURCH PATRIMONY? That was the situation at that time - 2003-2004.  We seem to have a

very short term memory!

   It must also be recalled that the implementor of the current dissolution of USTHI - the Acting Rector - in order to return the Hospital to its former state was one of the BOT members who voted for the juridical separation of USTHI.  Unwittingly or otherwise, he was not too long ago in the same desparate situation in frantic search for an urgent solution that can save the Hospital from its unabated down spiralling collapse.  Unanimously, they were all convinced, after carefully studying all available options from September 2003 to May 2004 (that's 9 full months and at least half a dozen Board meetings of the UST BOT and the UST Corporation) that they unanimously made the right decision.  And said right decision bore good fruit in such a short time - 2004 - 2007.  Don't we judge the tree by its fruit?  Are we now turning a blind eye to these results and cling to some obscure Canon Law?  Are we not like the "sadducees and pharisees" of the law which Jesus referred to as "brood of vipers?'  How about the tens of thousands of poor patients that have been served during the last 4 years who would not have received appropriate care without the turnaround of USTH?  Is this not the Hospital's mission?  How about the great improvement in the medical and allied health sciences training in the Hospital compared to its state during prior years?  Is this not the mission of the University?  The juridical separation, the granting of its own personality and governance has preserved and improved and in fact greatly enhanced the University of SantoTomas and its Hospital.  It is a fact.  Only the blind and those who choose to be such deny that.  Given good faith among the members of the then UST BOT, and the legal means (civil) by which the process of separation was done,  and most of all, given the excellent results that flowed from it, IS THERE NO POSSIBLE REMEDY THAT CAN CURE THE UNINTENDED TRANSGRESSION OF THE CANON LAW?  If there is, was it ever excercised?  Can it not be done?  Reverting back to its former state is definitely not the solution.  It is like as one friar said "going back to the middle ages".

The 3 Billion Redevelopment Project and Loan. 

   The context of the development project is not a stand-alone feat and definitely not spur-of-the

-moment.  This is Phase 2 of the  UST BOT-approved 5-year strategic plan.  After a very successful Recovery Phase (Phase 1) in 2004-2005, came Phase 2 - the Development Phase.  Since USTH is in the catching-up process, Phase 2 is defined as infra, equipment, manpower and systems development towards unification of services and standardization of care.  But this process did not start here. The manpower development came very early. The number of medical

staff ballooned to more than 100%.  Systems development and accreditation were obtained as

scheduled. Equipment updating came in very rapidly to 90% even before fiscal year 2007.  Public reputation,both in the charity and business aspects significantly improved parallel to the improvement of the morale of the internal public.   Success in small projects and investments propelled advancement to bigger risks and bigger investments.  From the mere refurbishing of

corners and services, to acquisition of major equipment costing nearly Php 100M.  After confidence building, the first of the 4 phases of the Development Phase was started and completed almost 2 months ahead of schedule.  This is the Benavides Cancer Institute -

a first of its kind in this country.  The return as well as the patronage are overwhelmingly.  They even better the best case scenario of the projections studies.  This risk involved in BCI is over Php 600M total while the actual cash amount is Php 147M.  By its current performance, it can reach its target a year ahead of projections.  Do we need another proof?

   Now,  what is  the risk of the Php 3B investment? Is this unreasonable?  For someone who is not familiar with Hospital management and affairs, yes.  For someone who has not even made a single large investment elsewhere, yes.  For someone who was not in anyway part of the confidence-building process that we have undergone for over 3 years, yes.   For someone who

does not fully comprehend and understand all the meticulous studies, feasibilities, projections and

sentivity assessments that have been done, yes.  For someone who does not like to listen but assumes on understanding everything about the project by simply reading the documents without the dynamics of it, yes.  For someone who will not be able to look beyond those numbers and projections and assumptions, yes.  For someone who does not possess the vision, yes.  For someone who is NOT willing to take the risk, yes.  For someone who is not convince of success, yes.  For someone who does not trust the people in-charge, yes.

   The USTHI Board and the Hospital Administration painstakingly endeavored for 1 year and 9 months in taking care of all the details of the development project.  Yes, again, like the deficiency in the separation and incorporation of USTHI, this project and loan lacked the approval of the Master and of the Holy See.  While all transactions are legally valid (according to civil law), it failed to satisfy the requirements of Canon Law.  Are we to stop at the middle of the transactions?  The order to "hold in abeyance" from the Master came last September 2006 when all of the preparations and transactions were well on their way.  Despite such tight situation, the UST BOT and the USTHI held back all processes by slowing the pace and simply allowed it to passively

proceed for over 6 months.  But the transaction time table came ahead of the Rome Commission's time table. The divergence became inevitable.   By March of 2007, all involved parties are exerting pressures on USTHI to comply and proceed as previously agreed upon or else face legal and financial sanctions.  Under "interpretative permission" USTHI signed the OLSA with the lending banks.  THE ASSESSMENT OF ALL PARTIES INVOLVED IS THAT THE RISK OF FAILURE TO REPAY THE LOAN IS LOW.  This is the result of the due diligence of the banks, the financial adviser and arranger and Punongbayan and Araullo (Grant Thorton Consulting).  The projections numbers clearly speak for themselves.

   ALL TRANSACTIONS WERE DONE ABOVE BOARD.  There are no hidden costs. No one or no group will be personally inured beyond what is agreed upon as part of the services rendered.  The Hospital created all internal check and balance systems and responsible offices for proper accounting and disbursements.  Risk management workshop conducted to leave no stone unturned.  What else did we overlooked?  What is the basis of the allegation that "there is unlikelihood that USTHI would be able to meet the repayment terms set out in the OLSA?  All proofs are on the contrary?  Where is the proof of that allegation?  We waited for over 2 months.  No one came out with anything at all.  Even a scratch paper computation could have been a point of discussion!

Professional fees. 

   Yes, the USTHI BOT debated lengthily (and it shows that this was treated quite farily well) on the fees of all professional transactions. All contracts are above-board.  Again, the issue is the same.  There was no permission from the Master to enter into contracts with such professional groups with such fees. "I remind you that in some cases such contracts and agreements exceeded the monetary level that could be legitmately authorized by yourselves and consequently required my permission as Master of the Order and as Grand Chancellor of the University."  That limit is clearly stated in the Canon law as $100,000.00 or Php 5M.  Does it mean that henceforth all transactions exceeding Php 5M shall require Rome's approval?  If this is so, all major equipments of the Hospital seem to have been acquired "unlawfully".  Who will say that such fees are high and low?  What is the industry rate?  Is there an indusry rate? If there is none and the project depends on the financing scheme, are we to stop there or negotiate?  That is exactly what the USTHI BOT did. It followed all industry rates.  If there is no such rate, then negotiations.  These were all meticulously done with the best interest of the hospital and they were all done transparently, professionally and consistently.  At the end of the day, despite such fees, what is important is that the project remains viable and risks remain low.  Are we expecting to be served well always at pro bono rate or semi-pro bono rate?  Such rate is only true among the Hospital Administration!

   THE DOMINICAN LEADERSHIP, BEING THE FINAL DECISION MAKERS, CAN DO AND UNDO ANYTHING AND EVERYTHING WITH THE UNIVERSITY AND THE HOSPITAL,  AT WILL.  There is no denying.  We, as laymen, make a choice to assist them or not in their times of need.  We believe that we have responded to their desperate calling in 2003.  And we believe that the response we delivered, whether appreciated or not, was with great obvious success that bore some fruit that we can be proud of, not only before man but before God.  We also believe that continuing along this line of development is the best chance for the University and the Hospital to preserve the patrimony of the Church.  We believe that if it will be reversed, the risk of losing the patrimony of the Church becomes intolerably high. There is nothing in our consciences that holds back our convictions.  All transactions have been completed above-board, professionally and devoid of all personal gain and interests.  They may not be totally devoid of some errors, but rest assured that we have delivered our best in order to minimize or eliminate them. 

   As we humbly leave our responsibilities to the next administrators after having been requested to by the Master of the Order, we make this appeal to the Master not to revert back to the organization where it came from but rather continue the projects as planned that are most vital for the Hospital's survival in the next 10 years. We likewise appeal that a canonical remedy called "sanatio" be made rather than a complete reversal which may wipe out the remaining advantage that have been painstakingly won over during the last 3 years.  WE FIRMLY BELIEVE THAT DESPITE THEIR "OBJECTIVE DISOBEDIENCE" FRS. NANTES, ARCEO AND PONCE, DID WHAT THEY DID  BECAUSE OF WHICH THEY HAVE BEEN REMOVED FROM THEIR OFFICES, FOR THE SAKE OF THOSE LEAST OF GOD'S BRETHREN AND NOT TO OFFEND THEIR MASTER.  Lastly, we make this appeal, as we pick up our personal careers back to life (after having left them for 4 years) in order to help your institution, please keep our personal dignity intact by shielding us from unscrupulous allegations and accusations of your own brethren and their cohorts.  Despite this manner of parting, we still thank you for having given us the chance to respond to God's calling.

Cenon R. Alfonso, MD