What PLDT Senior Officials' Resignation and Retirement Could Mean for the Company

PLDT announced on Monday (April 17) that key executives of the company were leaving via resignation and “early retirement.” This could signal the start of major reforms for the telco giant following the budget overrun issue last year. 

According to a financial analyst, the shakeup was “just another move to implement reforms after the fiasco—the budget mess.”

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“The budget mess was not only a major concern to management but also to stockholders,” said First Grade Finance Inc. Managing Director Astro C. del Castillo. “I’m sure more news related to the scandal will be announced to avoid such a mess again moving forward. The amount is earthshaking.” 

The company itself has so far declined to comment or issue further details about the top officials leaving.

In a regulatory filing with the Philippine Stock Exchange, PLDT said its SVP, CFO, and CRMO Anabelle Chua has availed of early retirement effective Sunday (April 16). Chua had been on leave since the P48-billion budget overrun was announced in December.

Like Chua, SVP and Head of Network Mario Tamayo also availed of the early retirement option, which took effect last Friday (April 14). Tamayo had spearheaded several key infrastructure initiatives for the company.

Also leaving the company were SVP and Chief Procurement Officer Mary Rose Dela Paz and VP Wilson Bobier, both of whom “voluntarily resigned,” according to the filing. Their resignations took effect on Friday and Sunday, respectively. 

VP Alexander Kibanoff, meanwhile, took advantage of the company’s manpower reduction program. He formally left the company on Sunday. 

In the fourth quarter of 2022, PLDT announced that it incurred P48 billion in “budget overrun.” It has since reduced its P48-billion budget overrun by about a third, after executing a settlement and mutual release program that cuts its outstanding purchase orders from vendors. 

PLDT was thus able to taper its capital expenditures (capex) overspend to P33 billion after the execution of the program. The company said it has conducted a forensics review of the transactions in question and added that the review has been “substantially” completed. 

“Until the final results of the investigation will be announced then I think that’s the time where most shareholders will be at peace,” Del Castillo said. 

In its most recent financial report, PLDT saw its profits plunge 60 percent to P10.49 billion in 2022 from P26.37 billion the year prior. The company blamed the “accelerated depreciation” that it booked last year, which referenced the capex issue. 

However, its telco core income, meanwhile, was 10 percent higher to P33.12 billion from P30.23 billion the year prior, as the company recorded a six-percent rise in total revenues to P205.25 billion from P193.26 billion. 

Expenses ballooned 38 percent to P210.75 billion from P152.50 billion, mainly driven by higher depreciation costs. 

PLDT Chairman Manuel Pangilinan said he expects the Capex overspend to continue to have an effect this year although he said the effect would be smaller compared to the year prior.