SEC cracks down on lender Gul-Zara

The Securities and Exchange Commission (SEC) has revoked the corporate registration and lending license of Gul-Zara Lending Investor Corp., citing persistent violations of reporting and regulatory requirements.

In an order dated March 17, the SEC’s Financing and Lending Companies Department (FLCD) canceled both the company’s certificate of incorporation and its authority to operate as a lending firm.

The regulator said the move stemmed from continuous breaches of Republic Act No. 9474 or the Lending Company Regulation Act of 2007, its implementing rules, the Revised Corporation Code and various SEC memorandum circulars.

The FLCD also imposed administrative fines of P100,000 each on Gul-Zara’s key officers. They include chair and president Jennifer Sulit and board members Rachiel Medina, Edna Bubay Ocampo, Gulzara Singh and Geja Singh.

The case originated from show-cause letters issued last January after the company failed to submit several mandatory reporting requirements.

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A subsequent investigation found that Gul-Zara had not paid annual fees since its incorporation in 2009. It had repeatedly delayed or failed to file general information sheets and annual financial statements.

The company also did not submit the required lending company financial statements and interim financial reports for multiple years.