PLDT executives quit after 48 billion peso overrun budget

Multiple executives have left Philippine Long Distance Telephone Company, or PLDT, including its longtime chief financial officer, during an overrun budget of 48 billion pesos which caused a credit rating downgrade and a class action lawsuit.

According to PLDT, the problem was caused by overspending on network equipment, which led to spending that was 12.7% higher than the capex budget for 2019–2022. Last month, PLDT announced that the inquiry into the problem was complete.

While Chief Procurement Officer Mary Rose Dela Paz resigned voluntarily, Chief Financial Officer Anabelle Chua and Network Head Mario Tamayo chose to retire early. The vice presidents Wilson Bobier and Alexander Kibanoff used a “manpower reduction program” to voluntarily resign.

There was “no evidence of fraud” or “bad faith” on the side of any employee, the corporation claimed, following the investigation. PLDT, which is owned in part by Hong Kong-listed First Pacific and Japan’s NTT Group, suffered a reputational hit as a result of the financial meltdown and a rapid stock sell-off.

PLDT Chairman Manuel Pangilinan has stated last month that the management of the organization must now push forward and “focus on recovering whatever reputation we may have lost as a consequence of this incident.”

In early trade, PLDT shares rose 1.8%, defying a drop in Manila’s benchmark stock index.