DR. ALFREDO Bengzon, president and CEO of The Medical City (TMC).
MANILA, Philippines – A shareholders group from whom control of The Medical City was recently wrested on Monday expressed confidence that corporate regulators would rule in its favor in resolving the ownership battle for one of the country’s most established healthcare institutions.
In a statement, the camp of erstwhile CEO Dr. Alfredo Bengzon said recent fraud complaints filed in court against the group of current chair, Jose Xavier Gonzales, boost the former’s chances of regaining control of the hospital after the latter’s boardroom coup last year.
The Medical City, operated by the Professional Services Inc., is a public company under the leadership of Bengzon until the questioned election of Gonzales.
According to Bengzon’s lawyer, Roderick Puno, the hospital’s co-founder is relying on the decision of the Securities and Exchange Commission (SEC) for “definitive and just resolution to Professional Services Inc’s corporate challenges.”
Last year, SEC cited the Gonzales group for violations of the country’s corporate laws, including those that meant to protect stockholders from “fraudulent, manipulative and deceptive acts or practices” in connection with securities transactions.
Bengzon wants SEC to penalize the alleged fraudulent acts of the Gonzales camp, and settle all questions regarding the rightful ownership of the disputed shares.
Bengzon’s camp filed a criminal complaint for estafa against Gonzales and other directors representing the latter’s companies – Fountel Corp. and Felicitas Antoinette Inc. – as well as those of Viva Holdings, Gonzales’ Singapore partner in the Medical City investment. Prosecutors recommended the filing of a criminal case against the respondents after finding probable cause, and the case is now pending before the Pasig regional trial court.
The Gonzales group, on the other hand, filed criminal complaints for violation of inspection rights and perjury against Bengzon before the Makati and Pasig City courts, which were dismissed due to lack of evidence.
“The estafa case against the Gonzales and Viva directors and the dismissal of the perjury case against Dr. Bengzon are all welcome developments, as these validate our allegations of fraud and confirm our position regarding their improper disclosure,” Puno said.
“It is unfortunate, however, that the Pasig [court] has denied our petition for injunctive relief that would have stopped [the Gonzales – Viva group] continuing efforts to consolidate control, this time at the level of the PSI subsidiaries,” he also said.
Bengzon’s lawyers contend that the decision was “erroneous in matters of fact and law,” and thus would elevate the case to the Court of Appeals.