SEC tells Senate panel of adverse findings, incomplete disclosures involving Tiu companies

The Securities and Exchange Commission on Thursday told the Senate blue ribbon subcommittee that due diligence resulted in adverse findings and incomplete disclosures involving the companies of businessman Antonio Tiu. 

 

SEC chairperson Teresita Herbosa said the commission reviewed and investigated the disclosures and reports of Tiu’s Greenergy Holdings Inc. and AgriNurture Inc. Both companies are listed on the Philippine Stock Exchange.

 

“In this particular instance, we already... [went] through all the reports and have found some adverse findings or some incomplete disclosures,” she said during the Senate Blue Ribbon subcommittee hearing.

 

She said they will be issuing notices of clarificatory conferences to company officers as well as the auditors.

 

Herbosa did not elaborate on their findings.

 

“We are mandated under the law to always make a review, at least annually, of the listed companies in order to see if the financial reports are accurate,” she said.

 

After she was asked by the subcommitte for a copy of the preliminary report, the SEC chief said the commission will furnish the panel with a copy of the document.

 

“There are quite a number of findings for all financial statements of the five companies and we will be furnishing you with copies of these preliminary findings,” she said.

The SEC also submitted to the Senate panel the incorporation papers of five companies connected with Tiu, including Sunchamp Real Estate Development Corporation, Agrifortuna Inc., and Earthright Holdings Inc.

 

The SEC can punish companies with incomplete disclosures or reporting outright misrepresentations by revoking papers of incorporation.

 

“When there are incomplete disclosures or really outright misrepresentations or omissions then we will call the company, as well as auditor, and find out if they have any explanation. If there is none and they really made some misrepresentation, we will penalize them,” she said.

 

“We have administrative sanctions and depending on the severity, damage or prejudice, we can even impose suspension or in the case of ordinary corporations, even revoke the corporation,” Herbosa added.

 

Tiu earlier said he was asked by the SEC early this month to explain the controversy. – VS, GMA News