Witness: VP earned P2M from ‘loose investment’

MANILA, Philippines — Vice President Sara Duterte received P2.14 million from GenCorp Industries Inc. between 2022 and 2025 as what a defense witness described as a “return of capital” on a “loose investment” in a Jollibee branch in Davao City, the Senate impeachment court heard on Wednesday.

However, the company’s in-house counsel, lawyer Suzette Balucanag-Punay, could not produce written records establishing the amount or terms of Duterte’s original investment or explain the basis for the payments, prompting senator-judges to question whether the money represented repayment of capital or actual profit.

Outside the impeachment court, the testimony also drew a pointed reaction from the prosecution, with House prosecutor and Manila Rep. Joel Chua asking whether the payments could constitute a bribe.

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READ: Highlights: Day 42 of Sara Duterte impeachment trial | Nov. 11, 2026

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Punay, corporate counsel of GenCorp and Metro City Chow Foods Corp., was the defense’s fourth witness on Article 2 of the impeachment complaint, which accuses Duterte of amassing unexplained wealth, failing to fully disclose her assets and liabilities in her statements of assets, liabilities and net worth (SALNs), and failing to divest her business interests while in public office.

Punay testified on Day 42 of the trial that GenCorp paid Duterte P337,500 in 2022, P555,750 in 2023, P612,419.14 in 2024 and P636,700 in 2025, for a total of P2,142,369.14.

READ: VP Duterte’s camp calls off presentation of 15 bank execs as witnesses

She traced the payments to an investment Duterte made in 2007 in Davao Bounty Times Food Corp. for the Jollibee Times Square branch in Davao City.

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According to Punay, the branch and Duterte’s investment were subsequently transferred as different companies took over its operations, eventually reaching GenCorp, which operates five Jollibee franchises in Davao.

“She has an interest in the form… she has a loose investment in the Jollibee Times Square branch,” Punay told the court.

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“It’s an investment in a specific branch only, not the whole corporation,” she added, explaining that Duterte’s contribution was made before the branch began operating.

Punay maintained that Duterte had no shareholdings or position in GenCorp from 2022 to 2025. The Vice President’s name did not appear in the company’s general information sheets (GIS) during those years, she said.

No technical definition

She also said Duterte did not receive dividends because GenCorp had not declared any.

But Punay acknowledged that she had not seen a written document establishing the amount Duterte initially invested.

Asked by presiding officer Francis “Chiz” Escudero to explain the meaning of “loose investment,” Punay admitted that the term had no technical definition.

“I don’t think there is a technical meaning for loose investment. So what exactly does it mean?” Escudero asked.

“I termed it as a loose investment, Your Honor,” Punay replied.

The witness referred to bank checks issued in connection with the Jollibee branch but could not present an investment agreement or other written documentation specifying the original amount or terms of the arrangement.

The distinction between a “return of capital,” which refers to repayment of an investment, and a “return on investment,” which generally refers to profit or earnings, became a central issue during the proceedings.

During cross-examination, prosecution counsel Lorna Kapunan cited Davao Bounty Times Food Corp.’s articles of incorporation, which showed Duterte had subscribed capital of P187,500 and paid-up capital of P46,875.

The figures raised questions about why the payments subsequently made by GenCorp exceeded the documented paid-up capital.

Escudero pointed out that the P2.14 million Duterte received from GenCorp from 2022 to 2025 was about 45 times her documented P46,875 capital contribution to Davao Bounty Foods Corp.

Punay admitted she could not explain why the payments reached P2.14 million or identify any other investment that could account for the amount. She later agreed with private prosecutor Lorna Kapunan that the payments constituted income, whether classified as returns of or on investment.

Senator-judge Risa Hontiveros also questioned the characterization of the P2.14 million as a mere return of capital.

“So she really profited, right?” Hontiveros asked.

Punay answered yes after confirming the amount received by Duterte.

Hontiveros pointed out that Duterte had declared a business interest in GenCorp in her 2024 and 2025 SALNs, despite the witness’ insistence that the Vice President had no shareholdings in the corporation.

The senator also raised Article VII, Section 13 of the Constitution, which prohibits the Vice President and other specified public officials from directly or indirectly engaging in other businesses or holding financial interests during their tenure.

“Even if it’s indirect or if it’s loose investment or business interest, whether it’s in GenCorp or a former company, as a lawyer, that’s prohibited under the Constitution, right?” Hontiveros asked.

“I am not sure, Your Honor,” Punay answered.

After Hontiveros cited the constitutional provision, the witness confirmed that the prohibition was indeed stated in the Constitution.

Inactive director

During direct examination, the defense questioned the prosecution’s allegations concerning Duterte’s involvement in Metro City Chow Foods Corp., where she remained formally listed as a director from 2022 to 2025.

According to the company’s articles of incorporation, Duterte was one of its incorporators, holding a 20-percent interest equivalent to P50,000 in subscribed capital and P12,500 in paid-up capital.

Punay confirmed that the company’s GIS listed Duterte as a member of its board of directors and compensation committee during the period.

Metro City Chow operates a Chowking franchise at the San Pedro branch in Davao City.

Despite Duterte’s formal positions, Punay testified that the Vice President did not attend board meetings or company gatherings and had no participation in the corporation’s decision-making, operations, management or administration of its properties.

“I have attended meetings, I have attended board meetings also and she [was] not there,” Punay said.

She added that she had not seen Duterte at the branch or company parties.

Punay also explained that Metro City Chow did not actually have a compensation committee under its bylaws.

She said the accounting staff had explained that a bank would not accept a GIS containing vacant positions, prompting the directors to be assigned positions in an executive committee.

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The witness said she believed Duterte did not receive any compensation or honorarium for her listed position. —With reports from Isabelle Pechay and John Eric Mendoza