telecommunications companies

Globe cites need for good financial reporting amid PLDT fiasco

Ralf Rivas
Globe cites need for good financial reporting amid PLDT fiasco
As PLDT probes its P48-billion budget overrun, rival Globe says it's committed to adhere to financial reporting standards

MANILA, Philippines – Ayala-led Globe underscored the need for transparency in financial reporting amid rival PLDT’s recent accounting fiasco, which involved a P48-billion budget overrun.

In a statement on Tuesday, December 20, Globe said that publicly listed companies should follow the Philippine Financial Reporting Standards and must submit documents in a timely, complete, and accurate manner.

The blue chip company added that maintaining an Audit and Related Party Transactions Committee ensures efficiency and credibility in internal controls and corporate governance.

“Globe is committed to best practices in corporate governance to deliver continuous value for our customers, employees, and stakeholders. Good corporate governance is central in the way we do business and serves as our north star in making business decisions,” said Rizza Maniego-Eala, Globe’s chief finance officer, treasurer, and chief risk officer.

The statement comes just days after Pangilinan-led PLDT reported that it went off budget by P48 billion in the last four years. The amount was 12.7% of its total capital expenditures spent over the period.

PLDT is probing the incident and has since appointed new officers amid the accounting fiasco. It is also updating its processes to “address weaknesses” that allowed such budget overruns to occur.

Shares of PLDT sank to a new 52-week low of P1,130 a piece on Tuesday, 43% lower compared to its recent peak.

The Securities and Exchange Commission is investigating a possible incident of insider trading after shares sharply fell during the last minutes of trading last Friday ahead of PLDT’s announcement of a capex overrun. – Rappler.com

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author

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.