SEC fines Basic Energy for not updating website, late report

THE corporate regulator has directed Basic Energy Corp. (BEC) to pay P114,000 in fines for not complying with the website template guidelines and for submitting late its 2019 annual corporate governance report (ACGR), the listed firm told the local bourse on Thursday.

In a regulatory filing, Basic Energy said that it received an assessment letter from the Securities and Exchange Commission (SEC) on June 1, which noted the company’s “failure to comply” with the website template for listed companies, as required by a memorandum circular dated 2014. Because of this, the firm was made to pay a penalty of P64,000.

On June 9, Basic Energy received another assessment letter from the corporate regulator directing it to pay P50,000 as penalty for the late filing of its 2019 ACGR, according to a separate disclosure.

“The Company has already established corrective measures for the regular updating of the website and for the timely filing of the annual corporate governance reports,” the firm said in a statement shared with BusinessWorld through text. It added that it will ensure that the penalties are settled before their respective due dates.

Basic Energy said that it was able to submit its 2020 corporate governance report on May 31, around a month earlier than the extended June 30 deadline set by the SEC.

Three months ago, the listed firm received from the Energy department a service contract for its planned 50-megawatt wind project in Mabini, Batangas.

The contract provides for a non-extendible, five-year, pre-development stage and a 25-year development stage, counted from contract signing. Subject to clearance from the department, the development phase may be extended for another 25 years.

Basic Energy, chaired by Oscar C. de Venecia, previously reported a net loss attributable to its parent amounting to P15.1 million in the first quarter, lower than the P34.93-million losses incurred in the same period year on year, amid the global health emergency.

Basic Energy shares at the local bourse shed 1.27% or one centavo to finish at P0.78 apiece on Thursday. — Angelica Y. Yang