SEC penalizes 10 listed companies

The Securities and Exchange Commission has imposed fines on 10 listed corporations for failure to file audited financial statements for the year 2005.

Among these companies include Banco Filipino Savings & Mortgage Bank, Federal Chemicals, Benguet Corp., MRC Allied Industries Inc., Forum Pacific, Wise Holdings, RFM Corp., Swift Corp., Mondragon International, and Sanitary Wares Manufacturing Corp.

Trading in shares of Benguet may be suspended by the SEC should it fail to settle the fine after the hearing scheduled by the SEC.

On top of the fine, the SEC is also considering canceling the business registration of Wise Holdings, Mondragon, and Saniwares.

Aside from the 10, the SEC has issued a warning to five listed corporations namely AGP Industrial Corp., Apex Mining, Cosmos Bottling Corp., Liberty Holdings Inc., and Philippine National Construction Corp. considering this was the first time they violated the SEC’s reportorial requirements.

The PSE earlier suspended trading in shares of companies that failed to file annual reports despite the grace period given them.

The exchange decided to grant the grace period in consideration of the difficulties that the companies have encountered in preparing financial statements in compliance with International Accounting Standards/ Philippine Accounting Standards, which took effect only on Dec. 31, 2005.

Prior to that, Philippine companies used Generally Accepted Accounting Principles.