The regulator, led by chair Francis Ed. Lim, said the submitted reports could not be relied upon, prompting fresh reviews across three subsidiaries of the listed developer, controlled by tycoon Manuel Villar Jr.
The cancellation came after an onsite inspection by the SEC’s office of the General Accountant, which examined E-Value’s supporting documents, valuation assumptions, and methodologies.
Regulators found that the reports failed to comply with the International Valuation Standards, the globally accepted benchmark for ensuring that property valuations are objective, well-supported, and consistent.
E-Value faces P1 million penalty
Since E-Value is an SEC-accredited appraiser, full compliance with these standards is required, and the Commission has the authority to withdraw accreditation when standards are breached.
In its letter, the SEC imposed the maximum penalty of P1 million against the company and directed Villar Land’s subsidiaries—Althorp Land Holdings, Chalgrove Properties, and Los Valores Corporation—to submit new appraisal reports. The regulator cited significant deficiencies in E-Value’s work.
Appraiser could not justify valuation surge
“It is evident that [E-Value] failed to uphold the fundamental principles of independence, professional competence, and objectivity required under the [IVS] and the Code of Ethics and Responsibilities for Real Estate Practitioners,” the letter stated.
The SEC added the firm “was not able to provide documents that served as bases for its assumptions and valuation methodologies” that resulted in the P1.33-trillion valuation jump.
Misleading investors
The SEC underscored the wider implications of the misstated figures, noting Villar Land’s status as a publicly listed company and the reliance of investors on accurate disclosures.
It warned that the appraisal values “were used by investors to guide their investment decisions” and were incorporated into the financial statements of multiple subsidiaries—“extending the potential effect of the misstated valuations across the corporate group and compounding the risk of misleading the investing public.”
The investigation was conducted under the SEC’s visitorial powers granted by the Revised Corporation Code, which authorizes the agency to inspect corporate records and enforce compliance with valuation and disclosure rules.
—Edited by Miguel R. Camus
