Insider Spotlight
Why it matters
The public airing of internal conflict raises concerns over governance at one of the Philippines’ most influential conglomerates, with potential implications for investor confidence and asset control.
What’s happening
At the center of the dispute are two major decisions: the decision of Piki Lopez to sell controlling interest in First Gen’s gas assets to billionaire Enrique Razon Jr.’s Prime Infrastructure and the former’s subsequent acquisition—then reduction—of a minority stake in Prime’s hydropower business.
The majority questioned why control of the group’s “crown jewels” was relinquished and why a 40-percent hydropower stake with veto power was reduced to 33 percent.
What they’re saying
“Piki acts like a king without accountability,” said the group led by his cousin Eugenio “Gabby” Lopez III in a statement. “In reality, he is a salaried corporate officer equivalent to a professional manager with one qualifying share who is in power by the majority’s tolerance.”
Through their lawyer, Ronald Ventura, the group also asked why the transactions were not disclosed in advance and why shareholder approval was not secured despite the deals’ scale.
Power struggle
In a 5-2 vote last month, the majority removed Piki as president and CEO of Lopez Inc. — group’s parent firm — citing cause and loss of trust tied to the transactions.
However, a court order has kept him in position and prevented his removal from related entities, prolonging the standoff.
The dissenting bloc represents three Lopez family branches controlling 71 percent of the holding company, while Piki represents a minority branch.
What’s next
The majority is pushing for a full audit, rejecting conditions that would limit how findings can be used.
The clash over strategy and accountability could reshape control of key energy assets and test governance standards within the Lopez group. —Daxim L. Lucas |Ed: Corrie S. Narisma
