Due to “unreliable” and unsubstantiated values that went against international standards, the Securities and Exchange Commission (SEC) has withdrawn the accreditation of E-Value Philippines, Inc., the property assessor who reported ₱1.33 trillion in fair value gains for Villar Land Holdings Corp.
The SEC’s Office of the General Accountant (OGA) acknowledged in a letter dated November 12 that it had revoked E-Value’s accreditation and levied a maximum P1 million fines for violating the Securities Regulation Code and asset valuation regulations.
The regulator also ordered three Villar Land subsidiaries, Althorp Land Holdings, Chalgrove Properties, and Los Valores Corp., to submit revised appraisal reports, as E-Value’s valuations failed to meet International Valuation Standards (IVS) and were deemed unfit for financial reporting purposes.
The sanctions followed an inspection that revealed significant deficiencies in E-Value’s appraisal process. The OGA noted that the firm did not provide documentation for key assumptions and valuation methods, despite the enormous ₱1.33 trillion increase assigned to the properties.
“It is evident that [E-Value] failed to uphold the fundamental principles of independence, professional competence, and objectivity required under the IVS and the Code of Ethics and Responsibilities for Real Estate Practitioners,” the OGA said.
Additionally, the SEC cautioned that there may be wider market dangers associated with such misrepresentations. Since Villar Land is a publicly traded company, the values may have misled the public and investors because they were already represented in audited financial statements.
The investigation was carried out in accordance with the SEC’s investigative authority under the Revised Corporation Code, which permits the agency to examine companies and penalize infractions.
