Defense must explain Sara Duterte’s Gencorp interest – Tolosa

MANILA, Philippines — Vice President Sara Duterte’s defense lawyers will have to explain her declared financial interest in Gencorp Industries Inc. despite corporate records showing that she was not listed as a shareholder, House prosecution spokesperson Benjamin “Jay” Tolosa Jr. said.

“It’s up to them how they will explain it,” Tolosa, who is also private counsel for the House prosecution panel, said at a news conference.

Tolosa was responding to a question on whether a trust or nominee arrangement could explain the apparent discrepancy between Duterte’s Statement of Assets, Liabilities and Net Worth (SALN) and Gencorp’s records with the Securities and Exchange Commission (SEC).

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Duterte listed Gencorp among her business interests and financial connections in her SALNs, but an SEC witness told the Senate impeachment court that the Vice President did not appear as a shareholder or director in the company’s corporate filings. 

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Tolosa said the prosecution’s concern was whether Duterte had divested herself of her financial interest in the company after becoming Vice President.

“Our point is that one of the aspects of the article on unexplained wealth is the charge that the Vice President did not comply with the divestment requirement,” Tolosa said.

He said the prosecution’s position was that a vice president cannot continue to directly or indirectly participate in a business or hold a financial interest in government contracts.

Tolosa stressed that Duterte herself had declared an interest in Gencorp in her SALNs.

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A Philippine Government Electronic Procurement System (PhilGEPS) official testified that Gencorp secured 49 government contracts worth a combined P35.88 million from the Davao City government, Philippine Health Insurance Corp. Region XI and Overseas Workers Welfare Administration Region XI during Duterte’s term as Vice President. 

Tolosa said the prosecution would leave it to the senator-judges to determine whether Duterte violated restrictions involving financial interests in government contracts.

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“So now, do these things show that the Vice President violated the prohibition against having a financial interest in any government contract? We’ll leave it to the impeachment court to determine,” he said.

Gencorp is majority-owned by businessman Jaime Tan Cruz, whose name also appears in the corporate records of several other companies examined during the impeachment trial. 

Based on SEC documents presented to the impeachment court, Gencorp posted P364 million in gross sales in 2024 but reported net income of about P3 million.

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Senator-judge Paolo Benigno Aquino questioned the figures, saying a fast-food business would normally post net income equivalent to about 6 percent to 8 percent of gross sales. /dm