ABS-CBN unfazed by Piki’s complaint to SEC

ABS-CBN Corp. said it does not expect Federico “Piki” Lopez’s complaint before the Securities and Exchange Commission (SEC) to materially affect its operations, as the Lopez family feud spilled further into the embattled firm.

In a disclosure on Friday, ABS-CBN said it had yet to receive a copy of the “alleged complaint” or any SEC order requiring it to answer allegations raised by Piki.

“The company will provide the appropriate response to the relevant regulator at the appropriate time,” ABS-CBN said.

The media and entertainment firm added that it “does not expect any material impact on its business and operations.”

ABS-CBN issued the clarification after the Philippine Stock Exchange directed the company to comment on news reports regarding Piki’s SEC complaint against its top executives.

This came after Piki sought an SEC-led forensic audit and the appointment of an independent management committee to oversee ABS-CBN’s remaining assets and operations.

Piki earlier accused ABS-CBN chair Martin “Mark” Lopez, president Carlo Katigbak and chief financial officer Ricardo Tan of allegedly squandering company resources and violating corporate and securities laws.

Piki, a member of ABS-CBN’s board, accused the management of engaging in “systemic fraud, misrepresentation” and the “unabated dissipation” of company assets.

His complaint questioned billions of pesos in executive compensation, capital spending and accounting practices following ABS-CBN’s loss of its broadcast franchise in 2020.

ABS-CBN said the company and its employees were being dragged into “a fight they are not part of.”

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The firm said its board had consistently commended employees for helping keep ABS-CBN afloat despite its financial struggles.

“Instead of publicly calling out certain employees, and as a director of the company, Piki should just engage the board in constructive discussion,” the company said. “This public discussion is unfair to employees and is uncalled for.”

The firm added that the controversy was becoming a “painful distraction” as employees remained focused on restoring ABS-CBN’s financial footing.

“Please do not drag ABS-CBN into a fight that is not ours,” the company said.