The Bernaldo Po Presto & Poblador Law Office, representing former LFM officer Stella Uy and former director Sandra Uy, made this call in a letter to SEC Chair Francis Ed. Lim.
In the letter, the law firm noted LFM's "mounting and long-standing receivables" from Parity Values Inc. (PVI), both LFM's biggest distributor and its single largest stockholder. The receivables, it said, have reached nearly P805 million.
It also claimed that PVI was granted unusually long credit terms—180 days, and in some cases 360 days—without collateral or interest.
Executives, owner’s daughter ousted from LFM
“For raising these concerns, we were also informed that Ms. Stella Uy and Ms. Sandra Uy were eased out of their roles in LFM’s management and board, respectively, and were threatened with multiple baseless legal actions,” the letter stated.
“Consequently, they were forced to retire from LFM,” it added.
Sandra Uy is a former president and director of Liberty Flour Mills and daughter of company chair emeritusWilliam Carlos Uy, while Stella Uy is a former vice president for purchasing and assistant treasurer.
SEC asked to look at conflict of interest
According to the letter, receivables from PVI rose from P742.14 million in 2023 to P804.72 million in 2024, while LFM posted a negative operating cash flow of P72.24 million.
The complaint also highlighted interlocking directorships between LFM and PVI, including board secretary and PVI treasurer William L. Ang, which the law firm said posed a conflict of interest.
“PVI’s mounting receivables which is nearly a billion pesos, coupled with the board’s inaction, cannot be dismissed as normal in the ordinary course of business,” the letter showed.
“These circumstances strongly suggest the presence of conflict of interest and possible corporate abuse, which we respectfully request the Honorable Commission to investigate and penalize,” it added.
Former executives also being investigated by LFM
Ang pushed back at the Aug. 27 annual meeting, blaming past officers for at least nine governance issues that he said could cost the company P300 million.
Under review is the nearly P1-billion sale of the Liberty Building in Makati to subsidiary LFM Properties Corp. in 2023, now facing legal scrutiny.
—Edited by Miguel R. Camus
