SGV out as PLDT external auditor

MANILA, Philippines — Accounting giant SyCip Gorres Velayo & Co. (SGV) has resigned as external auditor of PLDT Inc., saying it could no longer be relied upon to independently check the telco’s finances.

In a disclosure to the Philippine Stock Exchange, PLDT said it has accepted the resignation of SGV as external auditor, ending a 24-year partnership between two leaders in their respective industries.

SGV surrendered its role as PLDT’s external auditor after concluding it is no longer independent under the rules of the US Securities and Exchange Commission.

Prior to this, SGV informed PLDT that its opinion on the telco’s international financial reporting standards (IFRS) for its financial statement in 2025 can no longer be relied upon. As such, SGV withdrew its opinion on PLDT’s 2025 reports.

SGV also withdrew its opinion on PLDT’s IFRS for the financial statement in 2024. The auditor said it failed to evaluate the information regarding the impact of hedge accounting and other adjustments on PLDT.

“SGV has now concluded that its independence was impaired as of the issuance of its fiscal 2025 audit opinions, and this impairment continues through today,” PLDT said.

Likewise, PLDT said SGV had no disagreement on any matter of accounting principles, auditing scope or financial disclosure that would have affected the auditor’s independence.

However, PLDT confirmed that internal auditors have initiated a review of errors in its financial statement, particularly on the recycling of net fair value losses on cash flow hedges.

PLDT said its management has assessed the control deficiencies in consultation with SGV. It was concluded that the recyling of value losses has constituted material weakness in the telco’s filing of financial report.

In response, PLDT said it is undertaking remediation measures to resolve the material weakness in its internal controls. The telco added that the issue has no impact on financial health, whether cash flow or earnings per share.

PLDT said Isla Lipana & Co. would now serve as its Philippine auditor, but it is still looking for a replacement to check its IFRS for its New York Stock Exchange trading.

The country’s largest telco has been working with SGV as its external auditor since 2002, issuing PLDT audit reports and providing it with accountancy services.