A chink in PLDT’s armor has been uncovered as the telco giant, chaired by bilyonaryo Manny V. Pangilinan, admitted a weakness in its budget process following a P48 billion capex overrun in the past four years.
PLDT in a disclosure to the Philippine Stock Exchange said improvements on its processes and systems have been initiated “to address weaknesses that allowed such budget overruns to occur.”
PLDT is likewise undertaking a management reorganization process.
The company reported last Friday a P48 billion overrun which represents about 12.7 percent of the group’s total capex from 2019 to 2022 which aggregated P379 billion.
The capex overrun is currently subject to an ongoing internal forensics mandated by the board and its audit committee.
Discussions with principal vendors are also ongoing “with a view to reconciliation of account and reduction of such budget overruns.”
So far, PLDT said the investigation has not uncovered any fraudulent transactions, procurement anomalies, or loss of assets arising from the capex spend.