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Supreme Court upholds CHED and The Office of the President on the final closure order of the bachelor's, master's and doctoral course offerings of the International Academy of Management and Economics

On July 4, 2012, the Supreme Court issued Resolution dated July 4, 2012 in G.R. No. 202073 entitled “IAME and Emmanuel T. Santos, petitioner vs. Commission on Higher Education, CHED Chairman Patricia B. Licuanan, Executive Director Julito D. Vitriolo, Executive Secretary Paquito N. Ochoa, Jr., and Deputy Executive Secretary for Legal Affairs Michael Aguinaldo, respondents”. The Supreme Court ruled that:

1. The Court did not find any grave abuse of discretion on the part of the OP in declining to assume jurisdiction over petitioner’s appeal from the Final Closure Order dated October 28, 2011 issued by CHED. 2. The Higher Education Act of 1994 (RA 7722) expressly declares the CHED to be independent from the Department of Education and attached to the OP for administrative purposes only. 3. Administrative supervision does not extend to the power to review, reverse, revise or modify the decision of regulatory agencies in the exercise of their regulatory or quasi- judicial functions. In CHED’s first Notice to the Public on February 3, 2012, all sectors were advised that:
“NOTICE is hereby given to the general public that upon full consideration and deliberation by the Commission en Banc (CEB) of the Commission on Higher Education (CHED) during its 373rd Regular Meeting on June 13, 2011, the CEB approved Resolution No. 140-2011, which denied with finality, the Appeal of the International Academy of Management and Economics (IAME) relative tot he Phase-out Order issued to the said institution through its President on February 28, 2011. The Commission directed that a FINAL CLOSURE ORDER be issued, the same to be made effective AY 2011- 2012 concerning the following academic course offerings of IAME, in view of the gross and serious violations and continuous defiance, and non-compliance by the institution of CHED Policies, Standards and Guidelines (PSG), as narrated specifically in said ORDER:

Bachelor of Science in Business Administration (BSBA)
Master in Business Administration (MBA)
Doctor of Philosophy in Management (Ph.D. In Mgt.)
Thus, the Commission has ordered that IAME can no longer admit any new students effective AY 2011-2012. However, IAME shall effect the transfer of all its existing students to other Higher Education Institutions (HEIs) with recognized programs by the end of AY 2011-2012, but meanwhile allow them to complete their enrolled courses this AY in consonance with Section 69 of BP 232. Those students in good standing who shall satisfactorily complete all the academic requirements of their respective courses by the end of AY 2011- 2012, may still be conferred their graduate and undergraduate degrees by the IAME upon completion of all pertinent requirements for graduation, as certified to be the IAME Registrar based on valid and duly reconciled scholastic records.

Finally, since it does not possess the required qualifications under CHED Policies and Guidelines, the IAME is hereby PROHIBITED FROM OFFERING ANY EXTENSION CLASSES with any HEI through any mode of delivery of educational services whatsoever, and shall cause the cessation of any and all such extension classes, if any, existing and being operated by the institution, or by any of its agents, or person(s) or entity for and in its behalf.

The Commission on Higher Education hereby issues this NOTICE for the information and guidance of all concerned, to forewarn the general public about the status of Business courses of the IAME in order to safeguard the welfare of enrolling students and their parents, and to announce that IAME is prohibited from holding Extension Classes or similar activities in any part of the country, for which higher education Business degrees are being granted. Any further violations of this prohibition by any public or private higher education institution shall be dealt with and sanctioned accordingly. The public is encouraged to report such violations to the CHED Regional Office concerned.

The CHED Regional Office National Capital Region (CHEDRO NCR) has been ordered to facilitate the efficient transfer of all students affected by the FINAL CLOSURE ORDER to duly recognized HEIs that agree to admit said students, provided that the IAME facilitates the processing of their transfer credentials upon receipt of the CHED ORDER, in accordance with Section 61 of the Manual of Regulation for Private Higher Education. Likewise, CHED NCR is directed to process the applications for Special Orders to graduate for IAME students whom its College Registrar shall certify to as having satisfactorily completed all requirements for graduation, based on valid and duly reconciled scholastic records required under pertinent CHED policies and guidelines.

Issued this 3rd day of February 2012 at the Higher Education Development Center Building, for the information guidance and strict compliance of all concerned.”

The assistance of the Secretary of the Department of Foreign Affairs has been sought by CHED regarding the widest dissemination to all foreign embassies for their appropriate action, with respect to their foreign nationals seeking to enroll in IAME. CHED has also informed the Bureau of Immigration and Deportation that it will no longer endorse extension of foreign students enrolled/enrolling in the abovecited IAME course offerings.

Issued this 2nd day of August 2012 at the Higher Education Development Center Building, U.P. Campus, Diliman, Quezon City.

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