Philcomsat lets go of external auditors

Publicly-listed Philcomsat Holdings Corp. (PHC) has terminated the services of auditing firm SGV & Co. for the latter’s "refusal to finalize and submit the audited financial statements for the year 2000," the company told the Philippine Stock Exchange.

PHC said SGV’s inability to complete the financial statements on time eventually led to the suspension of the trading of its shares at the PSE and would subsequently result in its delisting, if not acted upon immediately.

The Securities Regulation Code requires companies listed at the PSE to submit within 135 days (4 1/2 months) after the end of the issuer’s fiscal year, the audited financial reports certified by independent public accountants, but from time to time, extends the deadline depending on the reasons for such request.

Trading of PHC shares were suspended by the SPE after it failed to submit the reportorial requirements in July last year, or seven months after its fiscal year ended. Under its rules for delisting, the PSE can remove any issue from the registry of listed shares if the company "repeatedly fails to make timely, adequate, and accurate disclosures of information, or fails to submit any reportorial requirement to the exchange" although there is no time frame specified.

PHC said its board of directors has appointed Vicente Reyes & Associates as its new external auditor to complete and finalize the audit of its fiscal year 2000 financial statements.

PHC is the holding company of the government-controlled Philippine Communications Satellite Corp. whose shareholders themselves are locked up in a proxy war for board representation.

There is a court case pending before the Regional Trial Court of Makati involving the claims of two separate parties for control of PHC: a bloc led by Manuel Nieto against another bloc led by Carmelo Africa.