More Lopez family members take stand vs Piki

Loss of trust and confidence

MANILA, Philippines — More Lopez family members have spoken about the ongoing issues surrounding the clan, with each of the three branches of the majority confirming giving their green light on ousting their cousin, tycoon Federico “Piki” Lopez, as president of Lopez Inc.

“Each of us is confirming that we authorized our family’s representative on the board to vote to remove Piki as president,” a statement issued by 12 Lopez family members yesterday said.

“Over time, we’ve lost our trust and confidence in our cousin, Piki Lopez,” they said.

The family members behind the statement were Eugenio Lopez III, Rafael Lopez, Ernesto Miguel Lopez, Roberta Pilar Lopez Feliciano, Ramon Javier Lopez and Maria Cristina Rosario Lopez Grassi (children of Eugenio Lopez, Jr.); Maria Eugenia Psinakis Brown and Michael (children of Presentacion Lopez-Psinakis) and Manuel, Maria Margarita, Miguel and Martin (children of Manuel “Manolo” Lopez).

They said the decision was not an easy one, and that it was not led by a single person or faction of the family.

“From the start, keeping our families intact and unscathed was of primary importance. It was never our intention to go down this path or to proceed as has unfolded,” the group said.

“However, we collectively came to the same conclusion that, in the interest of all shareholders, this is the right path forward. In fact, it is this path, in line with our values, that requires us to adhere to the rules and corporate governance we have adopted,” it said.

In the decision to remove Piki, however, the group clarified that he would remain a board member, but just not as president of the holding company.

“Our only motive has been to do the right thing. It has never been to rob any one individual of their future or reputation,” it said.

The Lopez family members said that it was Piki who chose to make the issue public, noting that the matter should have stayed private.

The group claimed that they were neither informed nor consulted about the P50-billion sale of 60 percent of First Gen’s natural gas business to Prime Infrastructure last November, which they said happened again in April, when First Gen acquired a 33-percent stake in Prime’s hydropower business for P62 billion.

The Lopez family members said excluding them from such significant decisions was a “clear failure in Piki’s fiduciary responsibility and a circumvention of corporate governance.”

“Good corporate governance requires transparency and timely disclosures on decisions that have a material financial and strategic impact on the Lopez Group. Piki did not afford us such,” they said.

Further, the group said that it was only ethical that Piki should not have asked for or accepted the “poison pills” in First Gen’s transactions with Prime Infra without consulting the majority shareholders.

The so-called “poison pills” consist of First Gen paying Prime Infra P24 billion and allowing it to buy out First Gen from the gas and hydropower deals at a 25-percent discount.

“Through the poison pills, Piki secured his position as chairman and CEO and secured management control of the company, effectively making him indispensable because the cost of removing him, even for non-performance, would be too great,” the group said.

“Piki’s fiduciary duty mandated him to place the interests of the beneficial owners above his own, ensuring he did not use his position for personal gain. This was not the case. Piki’s interests superseded those of his shareholders,” it said.

The Lopez family members said it was because of these events that they  collectively decided that Piki should no longer serve as president of Lopez Inc.

“It is by taking this action that we will achieve our main goal to do what’s right, protect the shareholders, safeguard the company and its employees, and take care of the legacy entrusted to us. We’re committed to being responsible and doing what’s best for everyone involved, constantly looking for ways to keep this ongoing battle focused solely on verifiable facts,” the group said.

“We will not engage in a back-and-forth public argument. Instead, we will speak through our actions,” it said.

After the Lopez family majority voted to remove him as Lopez Inc. president last Feb. 27 in a 5-2 board vote, Piki filed a complaint before the Mandaluyong City Regional Trial Court against his cousins in their capacities as the directors of company, which serves as the ultimate parent firm of all the Lopez Group of companies

He was able to get a court order blocking his ouster indefinitely.

Piki claims that his removal as president was allegedly due to his refusal to infuse P2 billion in reserve funds from Lopez Inc. as fresh capital for the ailing ABS-CBN.