The Securities and Exchange Commission (SEC) said it has nullified the transaction that gave Medical City chairman Jose Xavier Gonzales’ group a controlling stake in the hospital, noting that his group employed fraud in taking control of Medical City’s corporate entity – Professional Services Inc. (PSI).
The Medical City has been led its long-time chief executive officer Dr. Alfredo R.A. Bengzon, also a former health secretary, until he was booted out in September 2018 by Gonzales’s group, the latter a nephew of the former.
This follows after the SEC Commission En Banc affirmed the resolution issued by a special hearing panel penalizing Viva Holdings (Philippines) Pre. Ltd., Viva Healthcare Limited, Fountel Corp., and Felicitas Antoinette, Inc. (FAI) for violating the mandatory tender offer rules and committing fraud in taking over PSI.
The SEC Commission En Banc’s decision dated Aug.13, 2020, also declared null and void with immediate effect all share acquisitions made by Viva Holdings, Viva Healthcare, Fountel and FAI in PSI beginning August 1, 2013.
“The corresponding increases in the authorized capital stock of PSI shall nonetheless remain valid. The shares shall be considered as unsubscribed and allocated for subscription by investors,” the SEC said.
“Shares acquired from other shareholders, namely Splash Corp.,
