THE Lopez family dispute stemmed from Lopez Holdings Corp. and First Gen chairman and CEO Federico ‘Piki’ Lopez's refusal to allocate P2 billion of the proceeds of First Gen's sale of 60 percent of its natural gas business to Prime Infrastructure to support debt-beleaguered ABS-CBN. In turn, ‘the majority said they would push for an audit of First Gen to protect shareholders.’
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Contrary to earlier reports, Federico “Piki” Lopez was indeed ousted as president and chief executive of Lopez Inc. “for cause and for loss of trust and confidence,” according to a statement issued by three factions representing a majority of the Lopez family.
In a statement released through their legal counsel, Ronald Ventura, the factions — which collectively hold a 71-percent stake in the family’s holding company — said the board voted 5–2 on 27 February to remove Lopez from his post.
Majority stake
“Representing a 71 percent majority stake, three Lopez family factions announced that the board voted 5-2 on 27 February to oust the executive,” the statement read.
“The majority said the company’s by-laws allow for the removal of any corporate officer, even without cause by a majority vote. Federico Lopez and his brother, Benjamin Lopez cast the dissenting votes.”
Federico and Benjamin Lopez are the sons of the late Lopez family patriarch Oscar M. Lopez who was former Chairman Emeritus of Lopez Holdings Corporation, parent company of media giant, ABS-CBN Corporation. Oscar is also known for having steered the family conglomerate into renewable energy and infrastructure, serving for over a quarter of a century as chairman of First Philippine Holdings Corporation.
Boardroom conflict
The majority faction said the dispute stemmed from a boardroom conflict led by former ABS-CBN chairman Eugenio “Gabby” Lopez III, son of the late former ABS-CBN chairman emeritus and Oscar’s younger brother, Eugenio “Geny” Moreno Lopez Jr., and allied family members, particularly over financial support for ABS-CBN Corp.
“Federico Lopez filed a complaint with the Mandaluyong Regional Trial Court seeking reinstatement, alleging his removal was retaliation for refusing to authorize a P2-billion capital infusion into ABS-CBN Corp.,” the statement read.
The same statement cited court filings alleging that a special audit identified 68 individuals who received nearly P1 billion in retirement payments, as well as the existence of a P2.56-billion bonus pool.
Removal challenged in court
Despite the board’s decision, Lopez has challenged his removal in court. He previously filed a complaint before the Mandaluyong Regional Trial Court, calling his ouster during the 27 February board meeting “illegal” and seeking reinstatement.
On 11 March, the court issued a three-day temporary restraining order (TRO) halting efforts to remove him, which was later extended until 1 April. Reports last week also said Lopez secured a writ of preliminary injunction preventing his removal while the case is pending.
Meanwhile, ABS-CBN denied claims of a family feud, with its board of directors saying recent reports misrepresented court records and falsely implicated the company in a dispute it said it is not part of.
Rejected allegation of unresolved audit findings
The media company also rejected allegations of unresolved audit findings and denied claims that the proposed P2-billion capital infusion would fund executive payouts.
“There were no audit findings. There is nothing to resolve. This claim is unfounded,” the company said. “No such payouts have been made. No such payouts are planned. This claim is equally baseless.”
In their statement, the three Lopez family factions also raised concerns over what they described as questionable transactions under Lopez’s leadership at First Gen Corp., a listed company he chairs.
They alleged that “billions of pesos” worth of transactions — including the recent P125-billion sale of natural gas and hydro assets — were carried out without prior board approval.
