In a letter addressed to the Philippine Stock Exchange (PSE), the board informed PSE that SGV has been "tasked to complete and finalize the audit of the company’s financial statements." It had been reported earlier that PHC had replaced SGV due to the auditing firm’s alleged "refusal to finalize and submit the audited financial statement for the year 2000."
However, documents submitted to the PSE establish that SGV had complied with all audit requirements but has not been able to finalize the financial statements for the year ending 2000 pending the approval of the financial statements by the PHC board of directors.
PHC is the holding company of the government-controlled Philippine Communications Satellite Corp. whose shareholders are in disagreement over board representation. Two separate groups are claiming control of the PHC board. One group is headed by Carmelo Africa while the other is led by Manuel Nieto. A court case on the issue is pending before the Makati Regional Trial Court.