ABS-CBN Corp. vowed to defend itself against allegations of financial mismanagement and “creative bookkeeping” lodged by its board member, pushing back against the regulatory probe that threatens to deepen the media company’s long-running financial distress.

In a statement, the Lopez-led broadcast firm said its board of directors and committees have consistently exercised proper oversight regarding executive pay, capital expenditures, and financial reporting.

The ABS-CBN statement follows an investigation initiated by the Securities and Exchange Commission (SEC), which formed an ad hoc committee to review the matter and issued summonses to the company and its top executives.

“The company has at all times complied with its disclosure obligations to the SEC and the Philippine Stock Exchange,” ABS-CBN said, adding that it cannot comment further on an active administrative case. “ABS-CBN intends to address all allegations through the proper legal and regulatory channels.”

The regulatory scrutiny stems from a complaint filed on May 6, 2026, by Federico “Piki” Lopez, an ABS-CBN director and chairman of First Gen Corp.

Lopez asked the SEC to appoint an independent management committee to take control of the broadcast firm and conduct a comprehensive forensic audit of its related-party transactions and financial disclosures.

In his complaint, Lopez alleged that top management squandered billions of pesos in corporate assets, precipitating a steep financial decline even before the company lost its congressional broadcast franchise in 2020.

The lawsuit names ABS-CBN, its digital unit The Big Dipper Digital Content & Design Inc., Chairman Martin L. Lopez, Chief Executive Officer Carlo L. Katigbak, and Chief Financial Officer Ricardo B. Tan Jr. The defendants have been ordered to file their responses within 30 days.

Lopez alleged that management violated the Revised Corporation Code and the Securities Regulation Code regarding fiduciary duties. He claimed corporate funds were disbursed to unduly favor certain officers and siphon cash through unnecessary expenses, creating an “illusion of solvency” to mask the company's underlying financial deterioration.

According to the complaint, ABS-CBN accumulated at least ₱45.5 billion in net losses from 2020 through 2025. The company's downturn began prior to its off-air order, with ABS-CBN posting a net loss of ₱2.6 billion in 2019 despite holding the nation's top viewership ranking.

Among the specific transactions flagged for regulatory review is ₱3.18 billion paid to top officials and “favored persons” during the six-year period through 2025. Total estimated compensation and advances to officers and managers reached ₱10.6 billion, accounting for roughly 23.4% of the company's total accumulated losses during the interval, the complaint said.

Lopez also questioned the financials of subsidiary Big Dipper, which allegedly declared a ₱2.5 billion cash dividend despite holding only ₱1.83 million in actual cash.

ABS-CBN counter-argued that its board had routinely commended the executive team for its efforts to keep the company solvent following the loss of its broadcast license, noting that no objections to those commendations had been recorded on the board level. The broadcaster said its day-to-day operations continue normally. (James A. Loyola)