Bengzon camp says The Medical City battle ‘far from over’

MANILA, Philippines – The camp of former health secretary Alfredo Bengzon said the legal battle for ownership of The Medical City is “far from over,” disputing his nephew’s claim that the controversy is “closed.”

Bengzon’s lawyer Eric Puno pointed out that they earlier asked the Securities and Exchange Commission (SEC) to nullify the majority shares “illegally” acquired by the group led by Bengzon’s nephew, Jose Xavier Gonzales.

“It is with this decision of the SEC that the serious questions regarding the legitimacy of ownership and control of the Gonzales group will be resolved,” Puno told Rappler on Wednesday, February 12.

The SEC has yet to decide on that matter.

But in November 2019, the SEC already ruled that Gonzales’ camp committed fraudulent and manipulative acts when they acquired a controlling interest in Professional Services Incorporated, the company behind The Medical City. The commission imposed a P50-million fine on Gonzales’ camp.

Puno also said on Wednesday that a Court of Appeals (CA) resolution released last January 21 “has no bearing on the Medical City dispute as it currently stands, since this deals with a board that no longer exists.”

The CA had junked Bengzon’s motion to overturn the results of the 2018 elections that voted in a new board for The Medical City and effectively ousted Bengzon as chief executive officer. But the CA ruling came after more than a year, with the 2018 board no longer existing, making the decision “moot and academic,” said Bengzon.

In a text message to Rappler, Bengzon also said the CA’s decision was litigated before the SEC decision was issued.

“The legal context has since changed with this SEC decision and is now in our favor,” Bengzon said.

Gonzales previously said the SEC’s decision is administrative in nature and does not overturn the current board. He also maintained Bengzon was “legally” voted out of management for costly mistakes. – Rappler.com