PLDT shakes up management amid P48-B budget overrun

Jekki Pascual, ABS-CBN News

Posted at Dec 16 2022 07:51 PM

MANILA - Telco giant PLDT is implementing a reorganization after an internal probe revealed an estimated P48-billion budget overrun from 2019 to 2022.

In a disclosure Friday, PLDT said the multibillion-peso budget overrun represents 12.7% of the total capital expenditure (capex) for the said period.

The issue is now subject to an internal investigation including internal forensics and discussions with principal vendors for the reconciliation of accounts.

PLDT clarified that the probe has not uncovered any fraudulent transactions, procurement anomalies, or loss of assets due to the capex spend.

It added that the company's main business units - Wireless, Home and Enteprise - are not affected by the capex overrun.

The company said its management reorganization is underway as it improves its processes and systems that may have resulted in the occurrence of budget overruns.

PLDT, together with subsidiary Smart, has an aggregated capex of P379 billion from 2019 to 2022 which was used for massive network transformation and upgrade.

Its capex for 2023 will remain elevated as the budget overruns enter the financial statements this year and next.