MANILA, Philippines — PLDT Inc. said Wednesday it is cooperating with government regulators amid an ongoing investigation into its reported overspending amounting to P48 billion in the past four years, which set off a brutal sell-off of the company’s shares.
In a statement, the country’s largest telecommunications firm maintained there was no fraud in relation to the budget overrun that triggered a management revamp.
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The Securities and Exchange Commission, the Philippine Stock Exchange and the Capital Markets Integrity Corp. (CMIC) — the independent audit, surveillance, compliance and enforcement unit of the PSE — have launched separate probes into the matter.
“PLDT has responded to separate requests for clarifications and answers from SEC and PSE, and will continue to respond promptly to any further requests,” the company said. “The company is also gathering all the information requested by CMIC."
In its disclosure sent to the PSE last Friday, PLDT said an internal investigation did not find any fraudulent transactions, procurement anomalies, or loss of assets arising from the budget overspending, the amount of which represents about 12.7% of the firm’s total capital expenditures in the past four years. Since 2019, the telco giant has embarked on a capital-extensive network expansion program to improve its services, including LTE and 5G rollout.
But even before the company could make the official disclosure, shares in PLDT had suffered from a sudden and sharp decline last Friday as rumors of an internal investigation had been going on for weeks. The SEC said it is also investigating the sell-off as part of its mandate to protect investors.
In its statement, the listed firm said that while it has to make timely disclosures, it had to “understand the range of issues involved and the extent of the matter” even as there were rumors already circulating about the company.
“Until this information is complete, any announcement would have been premature to the detriment of the public shareholders,” PLDT explained.
“Last Friday’s disclosure was done not one day sooner because PLDT needed time to conduct its investigation of the contracts and expenditures involved as well as to meet its major vendors for reconciliation of outstanding amounts and project status. It also needed to identify and indicate in the disclosure its action plan moving forward,” it added.
On Wednesday, shares in PLDT finished trading with 5.04% gains.