The Securities and Exchange Commission (SEC) has issued a show cause order against the asset valuer of Villar Land Holdings Corp., whose shares remain suspended on the Philippine Stock Exchange.
In a letter dated September 29, the SEC’s Office of the General Accountant directed E-Value Phils. Inc. to explain why it should not be subjected to penalties and sanctions relative to its valuation of properties of companies under the Villar Land group. These were Althorp Land Holdings Inc., Chalgrove Properties Inc. and Los Valores Corp.
The issuance of the order follows special onsite inspections conducted by the agency to determine the company’s compliance with SEC Memorandum Circular No. 2, Series of 2014, which provides for the Guidelines on Asset Valuations, and effective International Valuation Standards in the preparation of the appraisal reports of the companies.
The order forms part of the SEC’s investigation into Villar Land Holdings, which was recently ordered to pay administrative fines totaling P12 million for violations of Republic Act 8799, or the Securities Regulation Code, over its failure to submit its audited financial statements on time.
The investigation into E-Value is in line with the visitorial powers of the SEC, to regulate and supervise the activities of corporations, as well as impose sanctions when necessary.
‘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 in August fined Villar Land, formerly Golden MV Holdings Inc., and its 11-man board of directors, some P12 million for the repeated delays in the filing of its annual and quarterly reports.
In its order, the SEC’s Market and Securities Regulation department said it found Villar Land and its board ‘administratively liable for gross negligence or bad faith in directing the affairs of the company,’ for its inability to file its annual 2024 and first quarter 2025 reports.
The administrative fine involves P1 million for each board member and the company itself, and P2,000 each for every delay of submission from July 1 until the company submitted its report.
The board includes the three Villar siblings; their father and company chairman Manuel B. Villar Jr.; company president Cynthia J. Javarez; independent directors Ana Marie V. Pagsibigan and Garth F. Castaneda; the company’s CFO, CIO and heard of IR; its corporate secretary; assistant corporate secretary; and compliance officer.
In a statement, Villar Land and its officers said they ‘welcome the opportunity to explain their side on the issues raised and will respond to the SEC’s order in due course.’
It said the delay in the filing of the annual report and the first quarter 2025 report of Villar Land is not due to the refusal of its external auditor to sign the 2024 audited financial statements.
‘The delay was caused by the auditor’s varying requests for additional audit procedures in the course of their review of the valuation of the Villar City properties that were acquired by Villar Land in 2024.’