Medical City dispute seen ending soon

A group of shareholders of The Medical City expressed optimism the legal battle for control of the hospital would be resolved soon.

The Medical City, operated by the Professional Services Inc. (PSI), is a company under the leadership of longtime chief executive officer Alfredo Bengzon, a former health secretary.

Bengzon’s camp has questioned the election of its new chairman Jose Xavier Gonzales. It filed a criminal complaint for estafa and other deceits against Gonzales and other directors representing the latter’s companies – Fountel Corp. and Felicitas Antoinette Inc – as well as those of Viva Holdings (Phil.), the Singaporean partner of Gonzales in Medical City.

The Pasig City Prosecutors Office has recommended the filing of a criminal case against the respondents after finding probable cause. The case is now pending before the Pasig RTC.

The Gonzales Group, on the other hand, has filed criminal complaints for violation of inspection rights and perjury against Bengzon before the Prosecutors Office of the Makati City and Pasig City.

However, these complaints were dismissed for insufficiency 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,” said Roderico Puno, counsel for Bengzon.

“It is unfortunate, however, that the Pasig RTC has denied our petition for injunctive relief that would have stopped their (the Gonzales – Viva group) continuing efforts to consolidate control, this time at the level of the PSI subsidiaries,” he added.