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Shell company owned by SSS, ADB: NextGenesis punished for failing to make annual report on time

A publicly-listed firm owned by the Social Security System and Asian Development Bank has run afoul of the Philippine Stock Exchange’s requirements.

The PSE said it sanctioned shell company, NextGenesis Corp., for failing to submit its annual report for the fiscal year ended June 30, 2020 on or before the extended deadline of October 28, 2020.

A day after its original October 13 deadline to submit its annual report, NextGenesis sought an extension “because the final audited financial statements to be attached to the report is still being finalized and not yet available.”

“The company undertakes to submit the report within fifteen (15) calendar days after the prescribed deadline or upon submission of the report to the Securities and Exchange Commission, whichever is earlier. The company understands that failure to comply with the undertaking may result in the imposition of applicable penalty/ies and/or sanctions,” NextGenesis said.

As of September 2020, SSS is the single biggest stakeholder in NextGenesis with 19.3 percent while the third biggest is ADB with 7.53 percent.

The firm is controlled by the Garcia family.

The president and CEO, Gary M. Garcia, and director, Ma. Victoria G. Padilla, are related to the chairman, Roland M. Garcia, within the second degree of consanguinity.

The firm was originally Quezon City Development Bank (renamed Asia Trust Bank) which went belly up in 2010. It was converted into a holding firm and renamed NextGenesis in 2015. Its shares have been suspended for the last decade.

In its 2019 report, NextGenesis said it has “no existing operation” and its negotiations for new investors since 2018 have so far been futile.

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