ABS-CBN Corp. Board Director Federico R. Lopez is seeking a regulatory investigation into the media company’s top leadership, alleging the “squandering” of corporate assets and a “conscious and intentional design” to siphon funds through exorbitant executive pay despite spiraling losses.

In a verified complaint filed May 6, 2026, with the Securities and Exchange Commission (SEC), Lopez called for the appointment of an independent management committee and a forensic audit to protect the company’s residual value.

The filing, submitted through attorney-in-fact Gonzalo Ocampo, targets ASB-CBN Chairman Martin “Mark” Lopez, President Carlo L. Katigbak, and Treasurer and Chief Financial Officer Ricardo B. Tan.

The petition alleges that management violated the Revised Corporation Code and the Securities Regulation Code by presiding over a pattern of “fraudulent or grossly negligent expenditures.”

According to the complaint, ABS-CBN accumulated at least ₱45.5 billion in net losses from 2020 to 2025. While the company lost its broadcast franchise in 2020, the filing noted that financial deterioration began earlier, with a ₱2.6 billion net loss reported in 2019.

According to the filing, the losses have effectively wiped out the company’s retained earnings, which previously stood at ₱13.8 billion, resulting in a ₱6 billion deficit by the end of 2025.

Lopez’s complaint further stated that external auditors have repeatedly issued warnings regarding the company’s ability to continue as a “going concern.”

Central to the allegations is the ₱10.6 billion paid out in compensation packages and advances to officers and “favored persons” during the six-year period of losses. This amount, the filing claimed, represents roughly 23 percent of ABS-CBN’s total accumulated losses.

The complaint also alleged that management reclassified bonuses to hide the scale of executive pay as the company's financial position crumbled.

The filing further questioned ₱12.1 billion in property and equipment purchases made between 2020 and 2025, a period during which ABS-CBN lacked a franchise to operate broadcast stations.

Lopez alleged that these capital expenditures may have served as a vehicle to divert corporate funds rather than benefit the firm.

The complaint also accused the media giant of “creative bookkeeping” to maintain an “illusion of solvency.” It cites a 2023 transaction involving subsidiary Big Dipper Digital Content & Design Inc., which declared a ₱2.5 billion dividend despite holding only ₱1.83 million in cash.

The dividend, allegedly based on bloated paper gains, was used to artificially inflate ABS-CBN’s income and reduce liabilities.

Similar irregularities were alleged regarding ABS-CBN Global Hungary Kft., which declared a ₱3.63 billion dividend in 2025, of which less than one percent was received in cash.

The Hungarian units, Lopez said, reportedly received qualified opinions and disclaimers of opinion from local auditors due to lack of supporting evidence for financial statements.

Furthermore, the complaint noted that ABS-CBN has written off or impaired at least ₱16 billion in investments over the last six years, which Lopez claims may have been used to conceal the disappearance of corporate funds.

ABS-CBN didn’t immediately respond to requests for comment. A company representative said it would provide a statement at a later time. (James A. Loyola)