PLDT found no fraud in capex overspend

PLDT found no fraud in capex overspend

PLDT stated there was no fraudulent activity in relation to its PHP48 billion (US$866 million) capex overspending last year, but profit fell in its full 2022 financial year due to the overrun.

The Philippines-based operator said in a stock exchange filing it completed a forensic review of the elevated capex spend in December. It was conducted by an external party, focusing on the financial year between 2019-20.

PLDT stated it found: “No evidence of fraud, intentional concealment, or bad faith conduct on the part of any employee of the Company and no basis to restate the Company’s historical financial statements.”

Discussions have been completed this month with significant vendor partners this month to reduce 80% of the outstanding debt which equates to PHP33 billion, discussions are ongoing with other vendors.

Net profit for the operator plunged 60.2% year-on-year to PHP 10.5 billion. Capex came in at PHP96.8 billion above its guidance of PHP85 billion. The company previously stated it would drop capex spending for 2023.

Total mobile subscribers dropped 7% from 71.2 million to 66.3 million. Prepaid customers dropped by the same rate to 63.2 million, but post-paid saw a gain of 3% to 1.95 million.

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