The Social Security System (SSS) said it remains confident in the stability of First Gen Corp. even as a deepening rift within the Lopez family triggers calls for a leadership change and a government probe into “poison pill” provisions at the country’s largest renewable energy producer.

Robert Joseph M. de Claro, president and chief executive officer, said the state pension fund for private-sector workers is monitoring the internal dispute but expressed support for the conglomerate’s long-term prospects. 


“We are long-time partners of the Lopez Group and hope they resolve their internal issues constructively for the benefit of all stakeholders,” de Claro said in a weekend.

The pension fund’s exposure to the Lopez Group represents less than one percent of its total investible reserve fund, De Claro said.

He also highlighted the SSS’ robust financial health, noting that first-quarter results showed ₱125 billion in total revenue, a 10 percent increase year-on-year, while net income climbed 14 percent to ₱30 billion.

The vote of confidence comes as a majority faction of the Lopez family urges regulators to investigate investment agreements they claim protect the tenure of First Gen Chairman and CEO Federico R. Lopez.

The group alleged that these provisions, often called “poison pills,” would trigger a fire sale of assets if Lopez or key management figures are ousted, potentially wiping out billions in shareholder value.

According to the majority faction, the SSS and the Government Service Insurance System (GSIS) risk significant losses if these clauses are activated.

Based on the April 28 closing price of ₱16.86 per share, the SSS holds an investment in First Gen valued at more than ₱1 billion, while the GSIS holds nearly ₱1 billion.

The group claimed the largest potential hit would be felt by KKR & Co., the global investment firm that holds approximately ₱12 billion worth of shares through The Hongkong and Shanghai Banking Corp. Other international investors, including those represented by Standard Chartered and Deutsche Bank, are also expected to scrutinize the governance structures.

The controversial provisions reportedly allow Prime Infrastructure Capital Inc. to buy out First Gen’s natural gas and hydropower businesses for ₱125 billion—a 25 percent discount—if management changes occur.

The family faction alleged these terms were never properly disclosed and essentially strip shareholders of their fundamental right to replace management.

Critics within the board have also raised questions regarding a recent hydropower transaction with Prime Infrastructure. A board member reportedly challenged the validity of an agreement where a ₱75 billion deal for a 40 percent stake was discussed briefly in an executive session under “other matters.”

The faction is also questioning why First Gen later diluted its stake to 33 percent, a move they suggest may have been designed to bypass Philippine Competition Commission approvals while simultaneously surrendering minority veto rights.