THE Securities and Exchange Commission (SEC) is set to release this week the initial results of a probe into accounting issues in the financial statement of logistics firm 2Go Group, Inc.
“They asked for until the end of this month, so it will be forthcoming by next week,” SEC Chairperson Teresita Herbosa told reporters on Friday.
A special audit of 2Go’s financial statements showed that the company appeared to have “misdeclared” its financial statements for the full year 2015 up to the first quarter of 2017.
2Go’s net income was supposedly bloated by 90 percent to P1.08 billion in 2015 from the correct P109.1 million. Its net profit for 2016 should be only P344 million, or 74 percent lower than the P1.34 billion that was announced earlier.
For the first quarter of 2017, 2Go said it should have indicated a net loss of P264.8 million, contrary to a positive “net income” as reported earlier.
The new management of 2Go, led by tycoon Dennis Uy and SM Investments Corp., had hired SyCip, Gorres, Velayo and Co. (SGV&Co.) to conduct the review after their takeover in April.
The SEC probe, however, ran longer than expected as it needed more staff to conduct the review.
Last year, Herbosa said the company could be slapped with a P1-million fine—on top of a P10,000 daily fine since the time the misdeclaration was discovered—once the inquiry proves the logistics company misdeclared its financial position.