MEGAWIDE Construction Corp. said that it paid a penalty of P1.07 million to the Securities and Exchange Commission (SEC) for noncompliance with the Revised Securities Regulation Code (SRC).
In a disclosure to the Philippine Stock Exchange, the company said the penalty is in relation to its consolidated audited financial statements for the year ending December 2021.
Megawide said that in a letter dated Feb. 22, 2023, the SEC assessed penalties against the company “due to a material misstatement in the financial statements, and material deficiency in the annual and interim financial statements of the company.”
The total penalty assessed by the SEC amounted to P1.04 million for Megawide’s noncompliance with SRC Rule 68, while an additional penalty of P23,000 was assessed by the regulator for the company’s second offense for material disclosure deficiency.
According to Rule 68 of the SRC, a material misstatement includes failure to adopt the prescribed financial reporting framework and failure to disclose required information and other relevant information.
“The penalties imposable on an erring company for the violation of this rule shall be in addition to the fine imposable due to late or incomplete filing of other parts of any report to which the financial statements are required to be attached,” the rule read.
Meanwhile, Megawide said that it paid the penalties on March 8, which the SEC acknowledged on March 15.
On the stock market on Tuesday, Megawide’s shares closed unchanged at P2.94 apiece. — Justine Irish D. Tabile