A minority investor protection group on Tuesday expressed “deep concern” over PLDT Inc.’s P48-billion cost overrun in the past four years.
The Shareholders Association of the Philippines said in a statement this development had caused apprehension among shareholders and resulted in the sudden and sharp decline in PLDT’s share price over the past trading days.
SharePHIL said it expected PLDT to take the necessary measures to uphold their values of transparency, accountability and integrity.
The group also welcomed PLDT’s move to take swift action in addressing the matter and cooperate with regulatory bodies over inquiries raised.
“We look forward to a quick and decisive resolution of this matter, for the good of the investors and to restore investor confidence in the company,” SharePHIL said.
The share price of PLDT rose 2.6 percent Tuesday to close at P1, 262.00, after falling 16.78 percent last week.
PLDT said Tuesday it was in talks with vendors and suppliers to replace certain projects included in the P48-billion budget overrun.
The company told the stock exchange there were ongoing discussions or renegotiations between the company and its various suppliers on possible cancellations or portions of works not yet started or completed, which would reduce the capex overrun.
“The discussion also includes the possible replacement of certain projects that will be cancelled, with new projects that will improve revenue growth and customer experience,” it said.
PLDT also clarified that there were no “unrecorded transactions” or “undocumented purchase orders” based on its investigation.
“The forensic investigation is still ongoing. Thus far, no fraudulent transaction, procurement anomaly, or loss has been identified or uncovered,” it said.
The company said it planned to borrow between P35 billion and P45 billion in the next two years for general corporate purposes including, but not limited to, payment of capital expenditures and dividends.
