Pasig dismisses case against Bengzons

MANILA, Philippines — The Office of the City Prosecutor of Pasig has dismissed the complaint filed in October 2020 against Alfredo Bengzon and Margaret Bengzon for qualified theft and estafa.

The complaint was filed by Joseph Carballo, in representation of The Medical City, alleging that the two respondents colluded to improperly issue two checks amounting to P3.8 million.

In its resolution, however, the Pasig Prosecutor’s Office cited the position of the Bengzons that the checks were used to pay for legitimate legal services.

Furthermore, the Pasig City Prosecutor’s Office agreed that the The Medical City Board that approved the filing of the complaint did not have the authority to do so.

In this regard, the City Prosecutor said the Securities and Exchange Commission (SEC) had already ruled in August 2020 against the legitimacy of the majority shareholdings of The Medical City.

The SEC nullified the takeover of The Medical City by a group of shareholders. It said the acquisition of majority shares in Professional Services Inc. (PSI) was fraudulent. PSI operates The Medical City.

In a separate resolution it issued in 2019, the SEC panel found Viva Holdings, Viva Healthcare and Felicitas Antoinette Inc. liable for violating Section 18 of Republic Act No. 8799, or the Securities Regulation Code (SRC).

This provision requires any person who acquires directly or indirectly the beneficial ownership of more than five percent of equity securities to report the same to the issuer, the exchange where the security is traded and the SEC within 10 days.

Following the nullification of the shares acquired by the respondents, the SEC directed the SEC Office of the General Counsel to immediately resolve the case relating to the conduct of meeting and the election of the members of the board of directors of PSI.

In the absence of any restraining order or injunction against the SEC, the Pasig City Prosecutor’s Office upheld the legitimacy of the 2013 Board as the duly constituted PSI Board, and the lack of authority of the complainants to institute the subject complaint.

In a statement, Bengzon said “We are gratified to have been fully vindicated by this decision of the courts to dismiss the complaint for absence of merit and lack of standing of the opposing parties. Justice has truly prevailed in this case.”

The Medical City had been caught in a corporate battle since 2018.