THE Commission on Audit (CoA) said a former unit of the United Coconut Planters Bank (UCPB) has not made progress with its liquidation, with its dissolution deadline of Dec. 31 approaching.
In a 2022 audit report dated March 22, CoA said that the 鈥減rogrammed activities in UFEC鈥檚 Plan of Liquidation have not been carried out within the time frames set.鈥
UFEC (United Foreign Exchange Corp.) is a wholly-owned subsidiary of UCPB, which merged with Land Bank of the Philippines (LANDBANK) in 2022.
CoA said UFEC鈥檚 inability to follow the timeline set for its planned liquidation could result in the incurrence of additional fees, penalties, and other expenses.
The state auditors proposed that UFEC expedite its business closure as well as sell its financial assets worth over P7 million in 2022.
It also recommended that UFEC resubmit its amended articles of incorporation, pay the necessary fees, and file the latest audited financial statements to the Securities and Exchange Commission on time.
UFEC suspended commercial operations in 2004 and initially planned its dissolution on Dec. 31, 2016 鈥渄ue to the liberalization of foreign exchange markets, whereby the former UCPB can freely deal with other banks in foreign exchange currencies and transactions,鈥 the report said.
Its board in 2021 approved the dissolution of UFEC, which is authorized to conclude the company鈥檚 winding-up by Dec. 31, 2023.
CoA noted that as of Dec. 31, 2022, UFEC is unstaffed, with LANDBANK employees serving as the company鈥檚 management. 鈥 Beatriz Marie D. Cruz
