THE Securities and Exchange Commission (SEC) has directed E-Value Phils. Inc., the appraiser of Villar Land Holdings Corp.’s properties, to explain its valuation of assets owned by the Villar Land group as part of an ongoing review of the accuracy of the developer’s financial reporting.
In a show-cause order dated Sept. 29, the SEC Office of the General Accountant asked E-Value Phils. to explain why it should not be penalized for its valuation of properties owned by Villar Land group companies, including Althorp Land Holdings, Inc., Chalgrove Properties, Inc., and Los Valores Corp.
The order was issued after the commission conducted special onsite inspections to assess E-Value’s compliance with SEC Memorandum Circular No. 2, Series of 2014, which sets guidelines on asset valuations and adopts international valuation standards for appraisal reports.
“The SEC will continue to investigate this matter thoroughly in the interest of upholding transparency and accountability in valuation practices and accuracy in financial reporting. The Commission will provide updates as necessary in the interest of the public, while upholding the required confidentiality of the proceedings,” the SEC said in a press release on Tuesday.
On Sept. 30 last year, Villar Land acquired Althorp Land Holdings, Inc., Chalgrove Properties, Inc., and Los Valores Corp., which together own 366 hectares of land, for P5.2 billion.
The SEC said the delays in the submission of Villar Land’s audited financial statements occurred because its external auditor, Punongbayan & Araullo (P&A), sought to review the fair value of the properties.
Villar Land initially hired SEC-accredited valuer E-Value Phils., which reported a P1.33-trillion increase in value.
P&A later engaged Crown Property Appraisal Corp. to conduct an independent review, which resulted in a much lower value increase of P8.63 billion.
In August, the SEC Markets and Securities Regulation Department (MSRD) imposed the maximum P1-million administrative fine on Villar Land and 11 of its officials, totaling P12 million, in lieu of suspending the company’s registration statement and permit to offer and sell securities.
The latest show-cause order stems from the commission’s continuing investigation into Villar Land Holdings’ delayed submission of its audited financial statements, in violation of Republic Act No. 8799, or the Securities Regulation Code. — Alexandria Grace C. Magno
