Bengzon lauds SEC ruling on rival group’s SRC breach

MANILA, Philippines — Former health secretary Alfredo Bengzon, the former president and CEO of The Medical City, welcomed the Securities and Exchange Commission’s (SEC) order charging a rival group of serious violations of the Securities Regulation Code of the Philippines.

“The SEC’s resolution reinforces our faith in the commitment of the regulatory agency to strictly enforce the laws governing investments in our country, especially those meant to protect minority investors from manipulation, deception and fraud,” Bengzon said.

With the SEC resolution and show-cause order, Viva Holdings, Jose Xavier Gonzales and their other partners can no longer conceal the details of their scheme to acquire majority stake in TMC. 

This includes the $38 million “loan” granted by Viva to Gonzales and his group  which was used to fund a significant portion of their share acquisitions.

“We believe that the SEC resolution has sent a strong message to all investors that the laws and rules of the country regarding investments in public companies must be upheld and respected at all times,” Bengzon said.

Gonzales’ camp, meanwhile, is contesting the findings of the corporate regulator. 

However, the group said it was business as usual at TMC despite the SEC resolution.

“We contest the SEC’s initial findings regarding the procedural filings of forms 18A, 19 and 26, and note that they do not in any way affect the rights of Fountel and Viva to exercise their shareholder rights. 

“We emphasize that this is not a ruling and that we have been afforded 15 days to respond to the charges on these administrative matters.  We are confident that our submissions will demonstrate that we have consistently complied with all SEC rules. It is business as usual at TMC,” it said.