COA report cites state-owned firm’s violations

Published June 29, 2020, 12:00 AM

by manilabulletin_admin

By Ben Rosario

Directors and key officers of a subsidiary of the AFP Retirement an Separation Benefits System have been asked to pay penalties that may be imposed by government regulatory agencies and the Quezon City government for various administrative lapses committed by the firm.

In the recently-released 2019 annual audit report (AAR ) of the Monterossa Development Corporation, COA noted that the AFP-RSBS acted as a dissolved corporation.

As a result, MDC did not pay for various government imposed annual fees such as the annual registration fee, annual information of its employes and did not file monthly, quarterly and annual tax returns.

The state-owned firm also failed to renew its business permit, thus, may be liable to surcharges and penalties to be imposed by the Quezon City government.

The COA report written by COA Director Ma. Lisa P. Inquillo was sent to Col. Normal Legaspi (ret), MDC chairman and president and members of the firm’s board of directors just recently.

MDC is a wholly-owned subsidiary of AFP-RSBS that was created in 1998. Its sole property is the 15 hectare property in Batulao, Nasugbu, Batangas.

According to auditors key management personnel of MDC are employes of the AFP-RSBS.

“The MDC did not submit the amended articles of incorporation shortening its corporate term until September 30, 2005 resulting in its ineffective voluntary dissolution,” COA said in its audit observation.

Auditors noted that the MDC board voted for the dissolution in 2005.

They stressed that non-compliance to the resolution also violated Batas Pambansa Blg. 68 or the Corporation Codce of the Philippines.

So far, the MDC has stopped holding annual stockholders and monthly regular meetings, stopped conducting elections and failed to comply with the reportorial requirements of the Securities and Exchange Commission.

Should the SEC impose fines for the infraction of its regulations, the imposable penalties should be collected from the BOD.

“Even without proper dissolution, MDC discontinued the submission of its annual audited financial statements, contrary to Section 141 of BP Blg. 68 and various Memorandum Circulars of SEC which may be sanctioned under Section 144 o f the said BP,” the audit report added.

 
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