In the Matter of Medicus (Iloilo City), Inc.

September 10, 2008 SEC CED REF. NO. 2008-1394-CID IN THE MATTER OF MEDICUS (ILOILO CITY), INC. O R D E R Before this Commission is the request for settlement of the total assessed penalties imposed against Medicus (Iloilo City), Inc. (Medicus) for late filing of the following reportorial requirements with the Corporation Finance Department in violation of Securities Regulation Code's Implementing Rules and Regulations, particularly Rule 17: ETAICc SEC Form 17-Q (2007) First Quarter Report SEC Form 17-Q (2007) Second Quarter Report SEC Form 17-Q (2007) Third Quarter Report In a letter dated 22 August 2008, Medicus, through its President, Dr. Vicente E. Villareal, formally requested the Compliance and Enforcement Department (CED) to pay fifteen percent (15%) or FORTY-FOUR THOUSAND FIVE HUNDRED FIFTY PESOS (PHP44,550.00) of the total assessed value of the penalties in the amount of TWO HUNDRED NINETY SEVEN THOUSAND PESOS (PHP297,000.00) imposed by the Corporation Finance Department against Medicus. Attached with the said letter is a Secretary's Certificate dated 22 August 2008 stating that at the Special Meeting of the Board of Directors of Medicus held on 20 August 2008 at its principal office, the following resolution was passed and approved: "RESOLVED, that DR. VICENTE E. VILLAREAL, President of the Corporation, be authorized to negotiate and enter into a compromise agreement with the Securities and Exchange Commission ("SEC"), under the conditions imposed by the Sec. 55 of the Securities Regulation Code and Sec. 10-10 of the 2006 Rules of Procedure of the SEC, in connection with the penalties and other charges imposed by the SEC on Medicus by virtue of its having been classified as a public company and to execute any and all documents that may be required to formalize and implement the aforementioned agreement." Medicus offer of settlement in the amount of FORTY-FOUR THOUSAND FIVE HUNDRED FIFTY PESOS (PHP44,550.00) which was made before the proceeding was concluded, is being made pursuant to Section 55 of the SRC, to wit: Sec. 55. Settlement Offers . 55.1 At any time, during an investigation or proceeding under this Code, parties being investigated and/or charged may propose in writing an offer of settlement with the Commission. 55.2. Upon receipt of such offer of settlement, the Commission may consider the offer based on timing, the nature of the investigation or proceeding, and the public interest. 55.3 The Commission may only agree to a settlement offer based on its findings that such settlement is in the public interest. Any agreement to settle shall have no legal effect until publicly disclosed. Such decision may be made without the determination of guilt on the part of the person making the offer. 55.4 The Commission shall adopt rules and procedures governing the filing, review, withdrawal, form of rejection and acceptance of such offers. DHcTaE After a thorough and careful consideration of the facts and other circumstances attendant to this case, the CED is of the view that the proposed offer of settlement is just, reasonable, and sufficient penalty for the violation committed and it is therefore proper for the Commission to accept such offer. Such acceptance, however, is without prejudice to the imposition of additional penalties for other violations that may be identified later on. The CED, in giving a favorable recommendation, took into consideration the following factors, namely: 1. The proposed amount is fifteen percent (15%) of the total assessed penalty, which is within the fifteen percent (15%) minimum acceptable offer under Sec. 10-10 (b), Rule X of the 2006 Rules of Procedure of the Securities and Exchange Commission; 2. The settlement offer was timely and seasonably made; 3. The acceptance of the settlement offer would bring the case to a successful conclusion, without much toll on this Commission's time and resources; and 4. Overall, the settlement is in the public interest considering that Medicus is in the business of providing health-related service to the public. Finding the recommendation meritorious, and in view of the public interest being served, this Commission has accepted the Settlement Offer of Medicus in the amount of FORTY-FOUR THOUSAND FIVE HUNDRED FIFTY PESOS (PHP44,550.00), in full settlement and compliance of the reassessed penalty for its violation of Rule 17 of the Securities Regulation Code's Implementing Rules and Regulations. It is warned that, henceforth, the corporation should exert every effort and take such measures as are necessary to submit the required Reportorial Requirements on time in order to avoid repetition of a similar violation in the future; otherwise, the Commission will be constrained to impose a heavier penalty upon the corporation and/or its responsible officers. Consequently, on 9 September 2008, Medicus paid the amount of PHP44,550.00 as evidenced by Official Receipt No. 0207341. WHEREFORE, premises considered, the payment tendered by Medicus is hereby accepted, without prejudice to the imposition of additional penalty for other violations that may be identified in the future. DISHEA SO ORDERED. Mandaluyong City, September 10, 2008. (SGD.) ATTY. HUBERT B. GUEVARA Director