Thursday, August 11, 2022
manilastandard.net
ADVERTISEMENT
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
manilastandard.net
No Result
View All Result
Home Opinion Columns Naked Thought by Charlie V. Manalo

The BMW issue

Charlie V. ManalobyCharlie V. Manalo
August 20, 2020, 12:10 am
in Naked Thought by Charlie V. Manalo
Reading Time: 3 mins read
A A
73
SHARES
Share on FacebookShare on TwitterShare on Email

"The lawyer’s justification just raised more issues."

The issue of that luxury vehicle sold by Panay Electric Company to its president and chief executive officer shortly before its franchise renewal was trashed by Congress is generating more questions as expected. This, despite the fact that PECO’s legal counsel has branded the issue as false and malicious.

More than that, the issue has put the external auditor of the former utility distributor in hot water after lawyers from Divina Law, counsel of PECO, claimed that the expenses for the purchase of the BMW car was never included in the capital expenditures of PECO but was charged as an administrative expense.

According to PECO’s lawyers, company records will show that said purchase was an administrative expense that was charged to PECO’s own account, contrary to reports published on the media. “The said expense never became part of any of the amounts billed to consumers,” in the same manner the power distributor treats all other administrative expenses.

“Therefore, it is an utter and malicious lie that the consumers were made to pay even a single centavo,” PECO’s lawyers wrote media entities in defense of their client, while at the same time confirming PECO did buy the BMW. They said however it was a second-hand vehicle, first \used by the government for the APEC Summit in 2015. 

However, power consumers are saying otherwise.

ADVERTISEMENT

Halley Alcarde, general manager of Western Visayas Transport Cooperative, and also an accountant by profession, underscored that “all administrative expenses are charged to consumers 100 percent but a luxurious car can never be an administrative expense. It should be a capital expense.” 

What PECO lawyers are saying might be true with regard to how PECO treats its administrative expenses. Still, the distributor’s financial statement for 2015 shows the company only purchased P747,000 worth of transportation equipment. Alcarde said: “This cannot have included the P5 million BMW. And this strongly suggests that the initial information of recording the sale under distribution wires as reported by the media could be correct.” 

In my previous column, citing sources, I wrote that sometime in 2015, PECO bought a BMW 520d sedan from Asian Carmaker Corporation. This class of BMW, according to sources, costs around P5 million. 

Under PECO’s capital expenditure (CAPEX) for October 2011 to September 2015 which was approved by the Energy Regulatory Commission (ERC), the company listed to purchase transportation equipment for five years starting in 2011 with P2,133,851 allocation; 2012 with P2,231,446; 2013 with P2,337,988; 2014 with P2,447,289; and 2015 with P2,560,476. 

Clearly, the P5 million worth of the luxury car is not reflected in the aforementioned entries in the company’s financial statement.

Actually, the source said the said funding was supposed to be used for the purchase of five units of utility vehicles for the use of its officials but did not materialize after Luis Miguel Cacho, PECO’s President and Chief Executive Officer, allegedly decided to buy just one BMW for himself instead, equivalent to the price of the five utility vehicles, depriving those officials their vehicles intended for use in its official function to serve its customers efficiently. 

For his part, a local auditor who requested anonymity also argued that “If this is true, then the external auditor of PECO will have a big problem that might endanger his license to practice the profession for allowing an obvious capital expenditure to be recorded as an administrative expense.”

“PECO is creating more problems here because assuming we will take their statement hook, line and sinker, then the external auditor will have a very big problem for clearly violating the generally accepted accounting standards,” the same auditor noted.

“If this is so, then the financial statement submitted by PECO is no longer reliable because a capital expenditure should not be part of administrative expense,” he added.

So, where did the lawyers get the idea the purchase of the car was charged to the company’s administrative expenses? The issue just got more complicated.

Tags: BMWCharlie Manaloluxury vehiclePanay Electric CompanyPECO
ADVERTISEMENT
Charlie V. Manalo

Charlie V. Manalo

Related Posts

Starting on the wrong foot

byCharlie V. Manalo
July 2, 2022, 12:00 am
0
8.8k
Denying Villafuerte justice

"I was thinking that hijacking can only be done in the open seas, but not in land-based terminals" it is...

Read more

Too fertile an imagination

byCharlie V. Manalo
June 27, 2022, 12:00 am
0
987
Denying Villafuerte justice

"The funny thing is they are still very much in existence, doing what they do best—That is to criticize the...

Read more

A failure to head food security?

byCharlie V. Manalo
June 25, 2022, 12:05 am
0
826
Denying Villafuerte justice

"Lest Carlos forgets, Piñol was forced to resign as Secretary of the Department of Agriculture in 2019 after his benefactor,...

Read more

A recipe for disaster

byCharlie V. Manalo
June 18, 2022, 12:05 am
0
884
Denying Villafuerte justice

"If there are plans to make PTFOMS a milking cow by transforming it into a welfare office for the media,...

Read more

The people’s lawyer

byCharlie V. Manalo
June 16, 2022, 12:00 am
0
3.2k
Denying Villafuerte justice

“One name keeps cropping up for the position of Solicitor General...that piece of rumor pique my interest as it pertains...

Read more

Feeling entitled

byCharlie V. Manalo
June 13, 2022, 12:00 am
0
1.2k
Denying Villafuerte justice

“A critic of whatever issue tasked to lead a probe could be dangerous as the post could be used to...

Read more

Stories you may like

  • Zubiri new Senate President, vows to uphold chamber’s independence

    Marcos sees stronger PH-India relations

    5744 shares
    Share 2298 Tweet 1436
  • Showbiz icon Cherie Gil dies at 59

    2615 shares
    Share 1046 Tweet 654
  • Replevin and its common law origins

    1259 shares
    Share 504 Tweet 315
  • Fuel rollback next week, power rate cut in August

    1203 shares
    Share 481 Tweet 301
  • PBBM should probe excessive salaries, allowances of Diokno, BSP officials

    857 shares
    Share 343 Tweet 214

Print Edition

View More

Recent Posts

  • PLDT acquiring 38% stake in SkyCable; ABS-CBN invests in TV5
  • Fresh fears after Facebook’s role in US abortion case
  • Russian strikes near Ukraine nuclear plant kill 14
  • Serena Williams beaten by Bencic at WTA Toronto Masters
  • North Korean leader declares ‘shining victory’ over Covid
  • Michael Jordan ‘Last Dance’ jersey to be auctioned in September
  • Economists urge US to return Afghanistan’s frozen assets
  • Sneakers for Makati : AB4.0

Advertisement

Latest News

Michael Jordan ‘Last Dance’ jersey to be auctioned in September

byAFP
August 11, 2022, 7:30 am
0
139
Michael Jordan ‘Last Dance’ jersey to be auctioned in September

A jersey worn by basketball legend Michael Jordan during Game 1 of the 1998 NBA Finals, his last title victory,...

Read more

Economists urge US to return Afghanistan’s frozen assets

byAFP
August 11, 2022, 7:00 am
0
152
Economists urge US to return Afghanistan’s frozen assets

Several dozen prominent US and international economists urged the United States Wednesday to hand over to Afghanistan $7 billion in...

Read more

Sneakers for Makati : AB4.0

byManila Standard
August 11, 2022, 1:20 am
0
1.1k
Sneakers for Makati : AB4.0

Read more

BBM: No to sugar import plan

byVince Lopezand1 others
August 11, 2022, 1:10 am
0
352
Largest rare pink diamond found

SRA proposal to buy 300k MT abroad intended to boost tight supply Despite tight supply, President Ferdinand Marcos Jr. on...

Read more

Senate on lockdown, 3 senators positive for COVID

byMacon Ramos-Araneta
August 11, 2022, 1:05 am
0
272
Senate asked for quick OK of DDR bill

Senate President Juan Miguel Zubiri on Wednesday said visitors will not be allowed entry to the Senate premises for three...

Read more

Advertisement

ADVERTISEMENT
Facebook Twitter Instagram Youtube

ABOUT US

Manila Standard

Manila Standard website (manilastandard.net), launched in August 2002, extends the newspaper’s reach beyond its traditional readers and makes its brand of Philippine news and opinion available to a much wider and geographically diverse readership here and overseas.

Digital Edition

In tone and content, the online edition mirrors the editorial thrust of the newspaper. While hewing to the traditional precepts of fairness and objectivity, MS believes the news of the day need not be staid, overly long or dry. Stories are succinct, readable and written in a lively style that has become a hallmark of the newspaper.

Download – Today’s Paper

Search

No Result
View All Result

6th Floor Universal Re Bldg., 106 Paseo De Roxas cor. Perea Street, Legaspi Village, 1226 Makati City Philippines

Trunklines: 832-5554, 832-5556, 832-5558

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Pop.Life
    • Newsmakers
    • Hangouts
    • A-Pop
    • Post Its
    • Performances
    • Malls & Bazaars
    • Hobbies & Collections
  • Technology
    • Gadgets
    • Computers
    • Business
    • Tech Plus
  • MS ON THE ROAD
    • Sedan
    • SUV
    • Truck
    • Bike
    • Accessories
    • Motoring Plus
    • Commuter’s Corner
  • Home & Design
    • Residential
    • Commercial
    • Construction
    • Interior
  • Spotlight
  • Gallery
    • Photos
    • Videos
  • Events
    • Seminars
    • Exhibits
    • Community
  • Biyahero
    • Travel Features
    • Travel Reels
    • Travel Logs
  • Pets
  • Advertise with Us

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Install Manila Standard Web App

Install App