ABS-CBN Corp.’s board of directors denied claims of “unresolved audit findings” and allegations that the company paid more than P1 billion in bonuses and allowances to certain individuals.
The media company issued the statement following news reports concerning a dispute within the Lopez family. ABS-CBN’s board said the broadcaster is not a party to the legal case but sought to address claims attributed to court records.
“First, on the claim of ‘unresolved audit findings’. There were no audit findings. There is nothing to resolve. This claim is unfounded,” ABS-CBN said.
ABS-CBN’s board includes Martin Lopez, Carlo Katigbak, Rafael Lopez, independent directors Honorio Poblador IV, Emmanuel De Dios and Randolf David.
The board also rejected allegations that a proposed P2-billion capital infusion was intended for executive payouts. The company said no such payments have been made or planned, calling the claim “equally baseless.”
The internal rift surfaced after First Philippine Holdings Corp. chairman and chief executive Federico Lopez filed a complaint with the Mandaluyong Regional Trial Court. Federico Lopez is seeking reinstatement as president of Lopez Inc., the family’s ultimate holding company, following his ouster by his cousins.
Federico Lopez alleged he was removed in retaliation for refusing to authorize a P2-billion capital infusion into the media firm. Court documents filed by the executive claim a special audit discovered 68 unidentified individuals received nearly P1 billion in retirement payments and that a P2.56 billion pool existed for bonuses.
The respondents named in the legal filing include Lopez Inc. chairman Rafael Lopez, ABS-CBN chairman Martin Lopez, Miguel Ernesto Lopez and Maria Eugenia Brown. All four board members voted for the removal of Federico Lopez, citing a “loss of trust and confidence.”
ABS-CBN has faced significant financial hurdles since Congress denied its 25-year franchise renewal in July 2020. The company has accumulated losses exceeding P43 billion through the third quarter of 2025, despite asset sales and previous capital injections.
“Serving the Filipino is not without its challenges. But it is also a mission worth standing up for and ensuring that it remains untarnished by allegations,” the board said, adding that it continues to support management in its mission.
Federico Lopez remains the head of the family’s profitable subsidiaries, including First Gen Corp. and Lopez Holdings Corp.
