PLDT to settle budget overruns by next year

MANILA, Philippines — PLDT Inc. plans to clear its books of its P48-billion budget overspend by 2023, as it negotiates with its vendors for discounts and cancellation of certain projects.

In a regulatory filing, the telco giant said it has engaged in discussions with its suppliers for the possible termination of contracts that have yet to be started or completed.

“The discussion also includes the possible replacement of certain projects that will be canceled, with new projects that will improve revenue growth and customer experience,” it said.

PLDT expects to finish these negotiations soon to clear its financial statement of any capital expenditure overrun by 2023. As it stands, the telco anticipates its capex to remain elevated until next year due to a P48-billion budget breach that would reflect in its books in the coming quarters.

“The P48-billion expenditures are expected to be completed in 2022 to 2023 barring any delays. In addition, the capex overruns will enter the financial statements as they are completed,” PLDT said.

“These are projected to be completed from 2022 to 2023 and possibly 2024 should there be any delays,” the telco added.

PLDT maintained that it has so far uncovered no fraudulent transactions, procurement anomaly or loss of assets arising from the cost overrun it sustained between 2019 and 2022.

PLDT has informed its shareholders that it is conducting an internal review of its systems and management to prevent a repeat of the capex overspend.

In a separate disclosure, PLDT announced that its chairman, Manuel V. Pangilinan, spent at least P3.75 million to purchase 3,000 common shares in the telco. Similarly, president and CEO Alfredo Panlilio invested P3.81 million to buy 3,000 common shares.

Last week, PLDT saw its stock price go down by 17 percent, or by P248, after investors learned about the budget breach. Nevertheless, the Pangilinan-led telco vowed to pay the balance of the regular dividend at P45 per share and special dividend of P42 a piece for 2022.

Likewise, PLDT confirmed The STAR’s report that it will borrow between P35 billion and P45 billion in 2023 and 2024 to fund its capex and dividends.

On Dec. 16, PLDT reported that its capex in the past four years amounted to P379 billion, including an estimated breach of P48 billion, attributed to the purchase of assets that it failed to deploy due to slow market adoption.