SEC orders probe on PLDT trading after P48-billion overrun disclosure

The Philippine corporate regulator on Monday ordered an inquiry into the trading activities on PLDT Inc. after a selloff reportedly happened before the company disclosed a P48-billion budget overrun.

The Securities and Exchange Commission (SEC) said it ordered both the Philippine Stock Exchange (PSE) and the Capital Markets Integrity Corporation (CMIC) to provide initial reports of the trading activities on PLDT Inc.

GMA News Online sought a comment from PLDT and but none was immediately available.

“The reported ‘budget overruns,’ as well as the selloff in PLDT shares before the publicly listed company could make the official disclosure, are areas of concern for the Commission, being the regulator of the securities market and the champion of investor protection in the country,” the SEC said.

“In this light, the SEC has immediately commenced an inquiry into the matter,” it added.

The regulator said the initial reports of the PSE and CMIC would cover the trading activities which resulted in the “sudden and sharp” decline in the share prices of PLDT prior to the official disclosure regarding the “budget overruns.”

The CMIC serves as the independent audit, surveillance, and compliance arm of the PSE, tasked to enforce the Securities Regulation Code.

Its powers include investigating and resolving violations by trading participants of the securities law, along with trading-related irregularities and unusual trading activities involving issuers.

Pangilinan-led PLDT Inc. late Friday said it was investigating an estimated P48-billion worth of capital expenditure overrun or unexpected incurred budget costs, driving a management reorganization within the company.

Shares in the company have since fallen by double digits, closing Monday at P1,192.00 apiece or down by P286.00 or 19.35% from last Friday’s finish of P1,478 per share.

“The SEC, through its Markets and Securities Regulation Department, will closely monitor the investigation and will continue to conduct a parallel, independent inquiry into the matter to safeguard the interest of the investing public,” it said. —NB, GMA Integrated News