Known as the “brown taipan,” former presidential candidate Manny Villar Jr. may be a billionaire but he’s no trillionaire.
Auditing firm Punongbayan & Araullo (P&A) shot down Villar’s incredible land revaluation in Villar City, forcing listed firm Villar Land to erase over PHP1.33 trillion in paper gains for 2024.
P&A’s rejection dramatically slashed Villar Land’s previously stated earnings of just under PHP1 trillion (about $17.7 billion) in 2024.
In so doing, the auditing firm undid what was once tagged as the largest profit ever reported in Philippine corporate history.
The findings were part of a Securities and Exchange Commission (SEC) order that penalized Villar Land. A dozen of its directors and officers were made to pay PHP12 million.
Among those penalized were company chairman Villar, executives of Villar Land, and board members, including sitting senators Mark Villar and Camille Villar, children of the taipan.
The corporate watchdog cited violations of the Securities Regulation Code, the Financial Products and Services Consumer Protection Act, and the Revised Corporation Code.
Shares of Villar Land were suspended from trading last May 15 due to the firm’s failure to submit audited financial reports.
The company’s shares last traded at PHP2,296 each, valuing the firm at PHP1.48 trillion, making it more valuable than all other conglomerates in the country.
While the company is believed to have the largest ownership of property set for development, many are still undeveloped raw land devoted to agriculture.
Earlier this year, Villar Land stunned the market by declaring a record PHP999.72 billion profit for 2024, up more than 68,000 percent over the previous year despite falling revenues and operating income.
The surge was driven by a PHP1.33 trillion land revaluation from properties purchased in Villar City, a 3,500-hectare estate in Southern Metro Manila and Cavite, acquired months before from Villar-controlled affiliates for PHP5.2 billion.
Villar is one of the country’s richest and most powerful individuals with a net worth of $10.9 billion (PHP623 billion), based on Forbes Magazine estimates.
He controls several listed firms but his most valuable asset on paper is Villar Land, which started out as a developer of memorial park lots before being repositioned as the builder of Villar City.
The SEC’s Markets and Securities Regulation Department, in an order dated August 18, shed light on the controversy.
Based on the order, Villar Land hired E-Value Phils., an SEC-accredited appraiser, in early 2025 to value the Villar City land, resulting in a PHP1.3 trillion estimate.
But when presented with the findings, P&A, Villar Land’s external auditor, refused to sign off, suggesting it had concerns over the valuation’s reliability.
Said the SEC document: “Even with the appraisal reports prepared by E-Value Phils, Inc., P&A, required the engagement of another appraiser as consultant purportedly to assist in the testing of the reasonableness of the fair value of the subject properties and issue an expert opinion on the matter.”
On June 30, P&A, a member of Grant Thornton International, brought in Crown Property Appraisal Corp. to review the E-Value report but still insisted that the company revert to the original cost basis.
Facing pressure to submit its audited financial reports, Villar Land relented and accepted a much lower valuation of PHP8.6 billion, a figure close to its acquisition cost.
While considered an A-list property developer, the Villar group has had its share of failed or struggling investments.
Two years ago, it launched AllTV to much hype and fanfare, only to downgrade operations some three months later. It currently only shows old movies.
The group also faced numerous complaints earlier this year when its PrimeWater franchise could not deliver a steady supply. What it delivered, if at all, was muddy water.
Then there’s Coffee Project, intended to face off against market leader Starbucks. Marketed as a high end coffee shop, its branches have mostly lackluster business.
