SEC’s online registry system a bust
The Securities and Exchange Commission’s electronic registration program failed to live up to its objectives and even slowed down the agency’s productivity growth, the Commission on Audit said.
In its annual audit report, COA said the SEC’s company registration system (CRS), which was supposed to accelerate the registration procedure for corporations and partnerships and improve the country’s ease of doing business, failed to keep up with the volume of online transactions due to limited storage and slow internet connection.
The audit showed a significant drop in the number of registered companies and the registration fees collected. The SEC was only able to receive and process 2,154 applications through the CRS, of which only eight percent was approved and reached the final stage of applications.
According to COA, approval of applications takes around one to three months due to lack of processors.
COA also found discrepancies in the number of registered companies, which it said may have been caused by human errors in the daily count of registered corporations which are tallied daily and collated monthly and annually.