MANILA, Oct 16 — A bizarre series of transactions involving a stretch of land on the outskirts of Manila has thrust the business empire of Manuel Villar, the Philippines’ richest man, under intense regulatory scrutiny after his publicly traded company announced a staggering US$23.3 billion valuation gain on the property, only to reverse it months later.

The episode began when Villar’s Golden MV Holdings Inc — a developer of cemeteries and memorial parks — acquired the land from other entities controlled by the billionaire for just US, Bloomberg reported.

The astronomical gain, which would have made Golden MV’s 2024 net income a record for the Philippines, immediately perplexed Manila’s financial community. 

The company’s stock was halted, and the Securities and Exchange Commission (SEC) launched an investigation.

Auditors from a Grant Thornton member firm refused to endorse the valuation. After a protracted standoff, Golden MV eventually agreed to write down the value by 99 per cent, valuing the entities holding the land at-cost for a total of US$148 million.

Five months on, Golden MV’s stock remains suspended from trading. Regulators have stated the company must first submit audited financial results that include the land before trading can resume.

The company has insisted it acted in good faith but has left investors guessing about the rationale behind the initial valuation. 

“It is not clear why this transaction was done and this raises some questions,” said Miguel Angel Minutti-Meza, an accounting expert at the University of Miami’s Herbert Business School.

The land in question is a 366-hectare plot at the heart of “Villar City,” the billionaire’s signature real estate project to transform a cluster of cities into a new urban centre.

The SEC has since fined Golden MV and its senior executives for failing to file financial results on time and is still considering whether to file criminal charges. 

SEC chair Francis Lim was firm on the matter: “If you start bending rules because personalities involved are powerful already, our market integrity will always be a dream.”

Golden MV has appealed the fines, stating that the delay was due to the “protracted review process of the external auditor” rather than any neglect on its part. 

The company has not indicated when it expects to file its audited results.