SEC orders ABS-CBN execs to answer Piki Lopez complaint

MANILA, Philippines – ABS-CBN Corp. and several of its top executives have been ordered to answer a complaint filed by Federico “Piki” Lopez, who accused them of committing corporate and securities law violations while the broadcaster was suffering heavy losses.

In a disclosure on Monday, the media giant said the Securities and Exchange Commission (SEC) had served summons on the company, its subsidiary The Big Dipper Digital Content & Design Inc., chair Martin Lopez, president and CEO Carlo Katigbak and chief financial officer Ricardo Tan Jr.

READ: ABS-CBN unfazed by Piki’s complaint to SEC

The respondents were directed to reply within 30 days.

In the 29-page complaint filed on May 6, Piki asked regulators to investigate what he described as a pattern of corporate asset dissipation, excessive executive compensation, questionable related-party transactions and alleged misstatements in financial reports.

Piki noted that ABS-CBN had accumulated net losses of about P45.5 billion from 2020 to 2025, resulting in a deficit of roughly P6 billion by the end of last year.

Despite these losses, he alleged that ABS-CBN had released about P10.6 billion from 2020 to 2025 as compensation packages, advances and other benefits to top officers and “favored” individuals.

He further alleged that the company had spent around P12.1 billion on capital assets after losing its broadcast franchise in 2020 and later recognized impairments and write-offs on investments amounting to roughly P6.84 billion.

Management also allegedly continued to release substantial amounts to executives even as ABS-CBN’s financial condition deteriorated.

Piki argued that all these were detrimental to minority shareholders, creditors and the investing public.

“In a flagrant display of bad faith and/or gross negligence, ABS-CBN has continuously paid exorbitant amounts of money to management and other corporate officers booked as ‘compensation packages’ or ‘advances’ amidst billions in net losses,” the complaint said.

Also questioned were dividend declarations of subsidiaries, including The Big Dipper and ABS-CBN Global Hungary Kft., which Piki characterized as “phantom dividends” that allegedly created the appearance of stronger financial results.

Piki asked the SEC to appoint an interim management committee to oversee ABS-CBN, conduct a forensic audit and investigate the respondents.

For its part, ABS-CBN said it would respond to the complaint “in due course” through proper legal channels in accordance with the applicable laws and rules. INQ