2GO reappoints SGV as external auditor

2GO Group Inc. has reappointed Sycip Gorres Velayo & Co. (SGV) as its new external auditor, replacing R.G. Manabat & Co., the Philippine partner of KPMG.

In a disclosure yesterday, 2GO said its board approved SGV’s appointment in a meeting last Sept. 20.

The new management of 2GO earlier tapped SGV to do a special audit on the company’s books, which uncovered discrepancies.

SGV was previously the auditor of 2GO but the Tagud-led management did not renew the company’s contract with them and instead hired KPMG.

The special audit showed that 2GO incurred P264.7 million in losses in the first quarter of the year, according to the restated financial statements.

This was in stark contrast to the P266.9 million profit reported in the first three months in a previously filed statement.

Similarly in 2016, the company incurred a net loss of P48.2 million. This was also in stark contrast to the P290.93 million reported last year.

KMPG maintained it adhered to all the necessary standards and practice in auditing financial statements.

The new management led by Davao-based businessman Dennis Uy called for a new audit of the company’s financial statements to establish accountabilities and ensure fair presentation of data.

The 2GO Group is the largest logistics provider in the Philippines with links to over 150 countries.

Uy acquired 32 percent of 2GO in March while the SM Group purchased a 34.5 percent stake in the shipping firm through SM Investments Corp.