THE Philippine Postal Corp. (PHLPost) overstated its cash and property accounts by billions of pesos because of unreconciled transactions, missing assets and balances from closed bank accounts, according to the latest audit report of the Commission on Audit (CoA).
State auditors said PHLPost’s property, plant and equipment account included P878.66 million in unreconciled subsidiary ledger balances and P65.90 million worth of missing and fire-damaged assets that remained recorded in its books, resulting in overstatements of asset values. CoA also flagged land parcels valued at P90.89 million that could not be located and were occupied by third parties without legal documents.
PHLPost’s cash and cash equivalents account likewise contained unrecorded reconciling items and unadjusted transactions totaling P482.39 million in 2025 and P1.13 billion in 2024. Auditors also found P403.31 million in balances from closed or terminated bank accounts that remained recorded, further overstating the corporation’s cash position.
Beyond the accounting deficiencies, CoA reported that 591 parcels of land covering 386,317 square meters and worth P1.16 billion lacked original or transfer certificates of title, leaving PHLPost’s ownership claims unprotected and potentially vulnerable to legal disputes.
The audit body recommended the reconstitution of 15 land titles lost in a 2023 fire and the creation of a task force to secure titles for the remaining untitled properties.
PHLPost posted a net deficit of P589.29 million in 2025, wider than the P548.29-million loss recorded a year earlier, while revenue fell to P2.01 billion from P2.23 billion.
Citing the extent of the accounting irregularities, CoA rendered an adverse opinion on PHLPost’s 2025 and 2024 financial statements. — Pexcel John Bacon