Now let’s read about the biggest accounting scandals in recent years in the Philippines. Insider Monkey has recently published an interesting article about this topic. As for me, oroginally I graduated as an accountant, but I must confess I am not good at it. I mean while studying at the college I realized I wasn’t interested in it, that’s why I lagged behind. Consequently I don’t really understand how these scandals happen in real life – but it this article was very interesting and edifying for me.
Now without a further ado let’s see what Insider Monkey has investigated for us. We have picked three scandals from their list.
The first scandal is Royal Manchester Five Trading Corporation (RMF) Pyramid. This is the first of the pyramid schemes to encounter on this list. How does it work? It is a rather simplistic, but eventually unfair principle. A company, such as this one, promises to deliver its investor a certain amount after the defined period. How does he/she get the revenue? By asking friends, relatives, acquaintances to join in and invest. The company initially is able to provide regular payments to its investors. However, this course of action must come to an end since it is practically impossible to sustain forever. The second scandal that is worth checking is Franc Swiss Fraudulent Investments. One more HYIP, or a high-yield investment program that went completely wrong for the ones who trusted it. It offered 4.5% interest per day for 60 days on a minimum investment of $1,000. Far from being modest, Franc Swiss promised to make millionaires from its unsuspicious customers. The headquarter was actually located in the States, in Utah. At last, but not least we mention Manny Pacquiao Tax Evasion. Just when you were getting bored of all those (un)believable schemes and frauds, here is a celebrity in the list of most shocking recent financial incidents in the Philippines. Manny Pacquiao was a boxing champion with senatorial ambitions. He has won world championships in eight weight classes, a fact which is beyond impressive. In a nutshell, he used the fact that he had some fights in the USA as an excuse for not paying the taxes neither to the Philippines government nor to the US. For his country, he argued that the fights were abroad.
For any further useful information read Insider Monkey’s article about 10 biggest accounting scandals in recent years in the Philippines.