The Securities and Exchange Commission is expected to complete its preliminary investigation on the auditing discrepancies involving the 2016 and 2015 financial statements of logistics firm 2GO Group Inc.
SEC chairperson Teresita Herbosa said the special hearing panel conducting the investigation was set to present its findings before the end of February.
“They (special hearing panel) requested for additional time to complete their investigation. They will present their findings by the end of February,” Herbosa said.
The new management of 2GO, led by businessman Dennis Uy’s Udenna Corp. and SM Investments Corp., hired SyCip Gorres Velayo & Co. to conduct an auditing review after taking over the logistics company in April.
A special audit of 2GO’s financial statements showed the accounts in the previously audited financials required a restatement “to ensure fair presentation of financial statements and establish accountabilities”.
Based on the restated 2016 and 2015 financial statements of the company, 2GO posted profits of P344 million and P109.1 million, respectively.
The restated figures are significantly lower than the net incomes of P1.33 billion posted in 2016 and P1.08 billion in 2015 earlier filed with the Philippine Stock Exchange.
RG Manabat, the local partner of international accounting firm KPMG, was the auditors of the 2016 and 2015 financial statements of 2GO Group. Former 2GOGroup Inc. chief Sulficio Tagud Jr. denied the allegations.
The SEC in July launched an investigation into the financial reporting issue.
The SEC’s Market and Securities Regulation Department and Office of General Accountant sought an explanation and clarification on the issue from the previous management of 2Go led by Tagud, RG Manabat and SGV.
The investigation will determine if the SEC could file a case against the previous principals of 2GO and its auditors and impose a fine on the company for mis-declaring its financial statements.