SEC orders asset valuer to explain Villar Land appraisal

​The Securities and Exchange Commission (SEC) has issued a show cause order against the asset valuer of Villar Land Holdings Corp. in line with its ongoing probe into the company’s financial statements.

In a letter dated September 29, the SEC Office of the General Accountant directed E-Value Phils. Inc. to explain why it should not be subjected to penalties and sanctions relative to its valuation of properties of companies under the Villar Land group, namely Althorp Land Holdings, Inc., Chalgrove Properties, Inc., and Los Valores Corporation.

The issuance of the order follows special onsite inspections conducted by the Commission to determine the company’s compliance with SEC Memorandum Circular No. 2, Series of 2014, which provides for the Guidelines on Asset Valuations, and effective International Valuation Standards in the preparation of the appraisal reports of the aforementioned companies.

The order forms part of the Commission’s investigation into Villar Land Holdings, which was recently ordered to pay administrative fines totaling P12 million for violations of Republic Act No. 8799, or the Securities Regulation Code, over its failure to submit its audited financial statements on time.

The investigation into E-Value is in line with the visitorial powers of the SEC, as provided under Section 178 of Republic Act No. 11232, or the Revised Corporation Code. This empowers the SEC to regulate and supervise the activities of corporations, as well as impose sanctions when necessary.

The SEC will continue to investigate this matter thoroughly in the interest of upholding transparency and accountability in valuation practices and accuracy in financial reporting. The Commission will provide updates as necessary in the interest of the public, while upholding the required confidentiality of the proceedings.