ABS-CBN refutes claims of 'unresolved audit findings' amid Lopez family dispute
ABS-CBN Corp.'s Board of Directors has released a statement distancing itself from the ongoing case involving several members of the Lopez family, who owns the media company.
"This statement is being issued in view of recent news reports concerning a dispute within the Lopez family and references to ABS-CBN," the board wrote. "We wish to state that ABS-CBN is not a party to this case."
The controversy began when tycoon Federico "Piki" Lopez sued his cousins Eugenio "Gabby" Lopez III, Miguel Ernesto Lopez, Martin Lopez, and Maria Eugenia Brown following his removal as president of the family holding company Lopez Inc. The cousins, including Piki, are directors of the company.
On March 11, Piki filed a complaint at the Mandaluyong Regional Trial Court claiming that on Feb. 27, he was illegally ousted, and demanding his reinstatement.
According to reports, Piki's removal was supposedly due to his refusal to use reserve funds amounting to P2 billion as fresh capital for ABS-CBN. Piki and his brother Benjamin, who is also a member of the Lopez Inc. board, allegedly voted against this move because they believed ABS-CBN had "unresolved audit findings."
In its statement released March 28, the media company denied this claim.
"On the claim of 'unresolved audit findings.' There were no audit findings. There is nothing to resolve. This claim is unfounded," it read.
"Second, on the claim that the proposed capital infusion could go to 'payouts for certain executives.' No such payouts have been made. No such payouts are planned. This claim is equally baseless," ABS-CBN said.
"Since losing its franchise in 2020, the company has faced challenges unlike any in its history. ABS-CBN has not stopped fighting to ensure its continued existence. It has not stopped serving. The last thing it needs is for its people to be misrepresented in a dispute it is not involved in," the company added.
The statement was signed by Martin L. Lopez, Carlo L. Katigbak, and Rafael L. Lopez, as well as independent directors Honorio Poblador IV, Emmanuel S. De Dios, and Randolf S. David.
On March 16, the court granted Piki's request for a writ of preliminary injunction, which maintained the status quo within the board.
Ten days later, presiding judge Monique Quisumbing-Ignacio issued an order prohibiting the defendants and everyone acting for and on their behalf from pushing through with the Feb. 27 board resolutions that removed Piki as Lopez Inc.'s president and named Rafael, Gabby's younger brother, as his replacement.
Further, the court disallowed Rafael from assuming the position. He was not allowed to carry out the functions of the president of Lopez Inc.
The court also ordered that Piki retain his positions as officer, director, or corporate representative in corporations where Lopez Inc. owns shares and has voting rights through its president.
