Philippine telecom PLDT claims 'no fraud' in $880m capex 'overrun'

Company says talks with network suppliers have yielded smaller bills

PLDT of the Philippines says competition from newcomer Dito and other pressures led to overspending on telecommunication equipment.

CLIFF VENZON, Nikkei staff writer

March 23, 2023 11:01 JST

Updated on March 23, 2023 19:24 JST

MANILA -- The Philippines' largest telecom company PLDT said on Thursday it has "substantially" completed an investigation into a 48 billion peso ($880 million) capital spending "overrun" that triggered a sharp stock sell-off and threats of U.S. lawsuits.

PLDT in December stated it was investigating the financial fiasco that stemmed from over-ordering network equipment. The issue has raised questions about corporate governance and financial controls at the company, which counts Japan's NTT Group and Hong Kong-based First Pacific -- the latter part of Indonesia's Salim Group -- as key investors.