In a sweeping complaint filed before the Securities and Exchange Commission on May 6, he questioned billions of pesos in corporate disbursements made under executives led by chair Martin "Mark" Lopez amid deep losses.
The complaint appears to rewrite the narrative surrounding Piki Lopez, an incumbent ABS-CBN director, who is currently embroiled in a family power struggle involving control of the group’s power, real estate, and media businesses.
Just weeks ago, ABS-CBN and the Lopez family majority backing the media firm revealed that it was Piki Lopez who proposed shutting down the company last year.
The move would have wiped out thousands of jobs at the network, which pivoted to content creation and navigated crippling losses and debts after losing its broadcast franchise in 2020.
The new complaint is recasting Piki as the executive trying to stop further financial damage inside ABS-CBN by accusing current management of draining corporate resources.
These expenses, the compliant alleged, “are clearly causing damage and prejudice to the rank-and-file employees, minority shareholders, the creditors, and the investing public.”
SEC intervention push
The complaint asked the SEC to install an independent management committee to safeguard ABS-CBN’s remaining assets, oversee operations, and conduct a forensic audit of related-party transactions and financial reporting practices.
“The body will protect assets of ABS-CBN from fraudulent or grossly negligent expenditures, conduct a comprehensive forensic audit of related-party transactions, as well as the accuracy of the financial reports, and preserve the residual enterprise value of ABS-CBN before it is irrevocably dissipated,” a statement from Piki’s camp showed on Thursday.
Piki Lopez said he opposed ABS-CBN’s proposed P2 billion funding infusion due to unresolved audit issues, alleging that much of the amount could again go to executives and favored individuals.
Family war spills into public
In a previous statement, ABS-CBN denied allegations involving its retirement fund and employee payouts, defended its financial recovery efforts, and accused critics of waging public attacks.
ABS-CBN has steadily reduced losses and cut or refinanced a significant portion of its debt, though its financial recovery is expected to take time and will likely require future funding infusions and further cost-cutting measures.
The ABS-CBN conflict forms part of a broader rupture within the Lopez family, where majority family members are also seeking to oust Piki Lopez from the parent firm over loss of trust tied to controversial power sector deals with tycoon Enrique Razon Jr.
Main allegations
Key allegations in the complaint included:
—Edited by Miguel R. Camus
