VAHANIA, AREDOA — In a joint press conference this afternoon, officials from the Ministry of Finance and Ministry of Justice have confirmed that Pedro González, CEO and majority shareholder of Porano HealthTech, has been arrested for the embezzlement of ₱68.4 million (S£47.2 million) from the company, sending shockwaves throughout the corporate world.
González’s arrest comes after an extensive investigation by the Economic Crime Agency. Evidence suggests that he siphoned off funds through a complex web of shell companies and offshore accounts. The financial irregularities came to light during a routine audit of Porano Healthtech’s accounts, revealing a significant financial shortfall.
González co-founded Porano HealthTech in 2007 and, as well as serving as the Chief Executive Officer, is the majority shareholder. His shares were last estimated to be worth ₱743.7 million before the government delisted Porano HealthTech from the Vahania Stock Exchange today, describing it as a necessary decision to protect public welfare- a move decried by shareholders seeking to offload their stock after the arrest.
Porano HealthTech is one of the biggest providers of medical and scientific equipment to the Aredoan Ministry of Health- receiving tens of millions in taxpayers’ funds each year for procurement purposes- but also receives significant business from overseas.
Invoking Section 8 of the Corporate Crimes (Public Interest) Act 2021, an act that has previously been described by free market capitalists as “unfathomable government overreach”, the Aredoan Government has dismissed the company’s board of directors and installed a public interim administrative body, citing the public interest in the case and the need to maintain critical healthcare services without disruption.
Anonymou government sources have indicated that the Ministry of Finance is now seeking to nationalise Porano HealthTech in the long term. In order to do so, they are aiming for a swift conviction for González to allow the government to acquire González’s shares without payment, as the Corporate Crimes Act enables.
