The Securities and Exchange Commission (SEC) has formed an ad hoc committee to investigate allegations traded between rival factions of the Lopez family, a dispute that threatens to engulf two of the Philippines’ most high-profile companies, First Gen Corp. and ABS-CBN Corp.

ABS-CBN disclosed to the Philippine Stock Exchange that it received summons from the corporate regulator on the creation of the panel, which is tasked with investigating "matters concerning The Lopez Group of Companies."

The SEC declined to comment on the matter, citing its policy against discussing active investigations. ABS-CBN also declined to comment beyond its regulatory filing.

The regulatory intervention follows a formal petition last month by First Gen Chairman and ABS-CBN Director Federico “Piki” Lopez. He urged the SEC to appoint an independent management committee for ABS-CBN and initiate a probe into senior executives for allegedly squandering billions of pesos in corporate assets, which he claims accelerated the media firm's financial decline prior to the expiration of its broadcast franchise.

In his petition, Lopez argued that an independent body is required to safeguard ABS-CBN’s assets from “fraudulent or grossly negligent expenditures,” execute a comprehensive forensic audit of related-party transactions, and preserve the residual enterprise value of the company before it is “irrevocably dissipated.”

Meanwhile, the majority faction of the Lopez family has countered by calling for a state-led investigation into alleged irregularities regarding First Gen’s acquisition of hydropower assets. That faction claims the transactions included “poison pill” provisions designed to block any attempts to replace Piki Lopez as head of the power generation firm.

The SEC has ordered ABS-CBN and its top management to respond to a formal complaint filed by Piki Lopez on May 6, 2026. The respondents—which include ABS-CBN, its subsidiary Big Dipper Digital Content & Design Inc., Chairman Martin L. Lopez, President and CEO Karlo L. Katigbak, and Chief Financial Officer Ricardo B. Tan Jr.—have 30 days to file their answers.

ABS-CBN stated that the respondents intend to address the allegations through proper legal channels in accordance with applicable laws and rules in due course.

The complaint alleges violations of Sections 30 and 31 of the Revised Corporation Code, alongside multiple provisions of the Securities Regulation Code governing the fiduciary duties and liabilities of corporate directors and officers. Piki Lopez alleged that management’s actions reveal a pattern where significant corporate funds were disbursed to unduly favor certain officers or to siphon cash out of the corporation through unnecessary expenses.

According to the filing, ABS-CBN accumulated at least ₱45.5 billion in net losses between 2020 and 2025. The company’s financial downturn began before its broadcast operations were shut down in 2020, with the broadcaster reporting a net loss of ₱2.6 billion in 2019 despite maintaining its position as the country's top-rated network.

The petition specifically requests an inquiry into ₱3.18 billion released by ABS-CBN in executive compensation and advances to top officials and favored persons during the five-year period. The complaint estimates total management compensation and advances reached ₱10.6 billion, representing 23.38 percent of the company's total accumulated losses during the timeframe. The filing characterized the disbursements as exorbitant payments made amidst severe net losses, alleging gross negligence and bad faith.

Furthermore, the complaint raised questions over potential accounting irregularities used to project an illusion of solvency. It cited an instance where ABS-CBN's digital content unit, Big Dipper, declared a ₱2.5 billion cash dividend despite holding just ₱1.83 million in actual cash.

ABS-CBN has sought to distance its corporate operations from the internal family feud, issuing a statement asking stakeholders not to involve the media company in a dispute that is not its own.

The broadcaster emphasized that its board of directors has consistently commended management and staff for their efforts to maintain operations under severe financial strain, noting that there have been no recorded objections to these commendations from Piki Lopez during board meetings. The company added that rather than publicly targeting specific employees, Lopez should engage the board in constructive internal discussions, calling the public airwaves unfair and unwarranted. (James A. Loyola)