SEC exec: VP Duterte should have known she had to divest from businesses

MANILA, Philippines – Vice President Sara Duterte should have known that she needed to divest from businesses upon assuming office as vice president,  Securities and Exchange Commission (SEC) Company Registration and Monitoring Department Director Gerardo del Rosario told the Senate impeachment court on Tuesday.

Del Rosario cited the Constitution, which prohibits the president, the vice president, and other high government officials from being directly or indirectly involved in businesses.

READ: SEC records: Sara Duterte stayed company director after becoming VP

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“Malinaw naman sa batas na mayroong prohibition at dapat sana alam niya bilang mataas na opisyal ng gobyerno na pinanumpaan niya nung siya ay nagswear to act as Vice President na yun ang kaniyang limitasyon. Kaya dapat sana bago siya nanumpa, tinanggal na niya o nagdivest na siya,” Del Rosario said.

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(It is clear from the law that there is a prohibition, and he should have known, as a high government official, that he swore an oath to act as Vice President that that was his limitation. So before he took the oath, he should have already removed or divested himself.)

READ: No record of Sara Duterte divesting business interests – SEC witness

He was responding to Senator-judge Raffy Tulfo, who asked whether or not the public officials covered by the said Constitutional provision should automatically divest from their business interests. 

The 1987 Constitution reads:  “The president, vice president… shall not, unless otherwise provided in this Constitution, hold any other office or employment during their tenure. They shall not during said tenure directly or indirectly, practice any other profession, participate in any business… They shall strictly avoid conflict of interest in the conduct of their office.”

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To note, Duterte was declared a shareholder and a member of the board of directors of Metro  City Chow Foods Corp. from 2016 to 2025, even though she took her oath as vice president on June 30, 2022. 

During the cross-examination, defense counsel Justin Gular referred to the same Constitutional provision, where he pointed out that there is no explicit prohibition on having shares in a company.

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Gular further referred to Republic Act 6713 of the Code of Conduct and Ethical Standards for Public Officials and Employees, which states that “conflict of interest arises when a public official or employee is a member of the board, an officer, or a substantial stockholder of a private corporation or owner or has a substantial interest in a business.”

When Gular asked Del Rosario if he was not competent to determine whether Duterte has substantial stocks in private corporations, Del Rosario answered in the affirmative.

He answered the same when Gular said he wouldn’t have information on whether or not Duterte has “substantial interest in a business.”

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Del Rosario also repeatedly testified that he has no personal knowledge of the activities of the companies Duterte is supposedly linked to, or the vice president’s exact involvement in them. /jpv