REAL ESTATE-APPRAISAL | MANILA, Philippines: SEC penalizes Villar Land appraiser
MANILA, Philippines — The Securities and Exchange Commission (SEC) has revoked the accreditation of E-Value Phils Inc. and imposed a maximum penalty of P1 million against the company for noncompliance with globally-recognized International valuation standards in its appraisal reports.
E-Value is the company that appraised the investment properties of Villar Land Holdings Corp. and reported fair value gains amounting to P1.33 trillion.
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The revocation of E-Value’s accreditation followed an onsite inspection conducted by the SEC Office of the General Accountant (OGA) over its valuation of properties of three companies under the Villar Land Group.
The SEC said findings during the inspection revealed that the appraisal reports by E-Value were non-compliant with the globally-recognized International Valuation Standards, which constitutes misrepresentation under SEC Memorandum Circular No. 2, Series of 2014,, which is in turn a violation of the Securities Regulation Code.
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The regulator explained that misrepresentation arises when the report indicates compliance with the standards, but is not supported by adequate documents or the supporting documents reflect otherwise.
The OGA said that E-Value was not able to provide documents that served as bases for its assumptions and valuation methodologies that led to the P1.33 trillion increase in the valuation of the properties of Villar Land’s subsidiaries.
It also said that the gravity of the misrepresentation was further underscored by the fact that Villar Land is a publicly listed company and such information was used by investors to guide their investment decisions.
“The subject appraisal values were likewise adopted in the preparation and submission of the AFS of VLHC’s subsidiaries, thereby extending the potential effect of the misstated valuations across the corporate group and compounding the risk of misleading the investing public,” it said.
The SEC said that the investigation into E-Value is in accordance with the visitorial powers granted to the commission under the Revised Corporation Code of the Philippines, in which the commission is mandated to regulate and supervise the activities of corporations, as well as impose sanctions when necessary.
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