Sara trial bares possible constitutional violation that SEC did not probe

MANILA, Philippines — The Securities and Exchange Commission has not concluded on its own whether Vice President Sara Duterte violated the 1987 Constitution by sitting on a company's board while in office, one of its officials said at her impeachment trial on Monday, September 21.

SEC Director Gerardo del Rosario said company filings list Duterte as a director of Metro City Chow Foods Corp. from 2018 through 2025. Duterte was elected vice president in 2022.

Del Rosario believes it is for the Senate, not the SEC, to decide whether her role breached the constitutional ban on the vice president participating in any business.

The SEC director was testifying as one of the prosecution's witnesses for Article II, which accuses Duterte of amassing wealth disproportionate to her lawful income and of having undeclared business interests. 

Senate President Sherwin Gatchalian raised the issue after Del Rosario confirmed that the filings for Metro City Chow Foods also list Duterte as a member of the company's compensation committee. 

Gatchalian asked whether this meant Duterte had "direct participation" in the management of the corporation.

"Ayon po sa report ng corporate secretary (Yes, according to the report of the corporate secretary)," Del Rosario replied.

Gatchalian then asked whether he can say it was a possible violation of the Constitution. "Kasi nakasulat ho dito bawal po 'yung participate in any business (Because it's written here that you're not allowed to participate in any business," Gatchalian said.

Del Rosario answered, "Opo (Yes)."

When Gatchalian asked again whether there was a violation, Del Rosario did not answer directly and carefully restated the provision instead: "Ang sinasabi po kasi ay 'wag kang magkaroon ng ibang opisina, you should not hold office, employment, and engage in other profession during the term of office, even to participate."

Asked whether the SEC had looked into the matter as an actual potential violation by Duterte, Del Rosario said they have not, as the SEC's investigative powers cover securities violations, not breaches of the Constitution by public officials. 

"Siguro po it's the Senate po ang bahalang maghusga kung talagang meron violation (Maybe it's the Senate who can judge if there is a violation)," Del Rosario said.

'They should have flagged it'

The issue first came up in the morning, when prosecution counsel Erwin Matib asked Del Rosario whether a vice president may sit on a company's board. The defense, represented by counsel Justin Nicol Gular, objected that the question called for an opinion from "a witness that is clearly incompetent."

Presiding Officer Sen. Chiz Escudero allowed the question, saying: "Because if it's indeed illegal, they should have flagged it."

Del Rosario first described the constitutional ban as covering business interests, not just businesses. After Matib read Article VII, Section 13 into the record, Escudero noted that the term does not appear in it.

"Wala po akong napakinggan sa binasa ni Attorney Erwin na business interest," Escudero said.

"Siguro po mali lang po 'yung aking pag-interpret in Tagalog po," Del Rosario replied.

Del Rosario earlier testified that Duterte was one of the company's incorporators and sat on its board from its founding in 2016.

She holds 20% of its subscribed shares, worth P50,000. She initially paid P12,500, and filings from 2022 to 2024 show her subscription fully paid. The company's amended 2025 filing, however, shows her paid-up amount back at P12,500. 

Del Rosario said the SEC only reflects what companies report.

He said the company posted a combined net loss of P3,154,676 from 2017 to 2025 and declared no dividends from 2018 to 2025.