Palace: Baste Duterte can’t simply claim ignorance of Gencorp dealings

MANILA, Philippines — Malacañang on Wednesday expressed concern over Davao City Mayor Sebastian “Baste” Duterte’s claim that he was unaware of his sister, Vice President Sara Duterte’s, financial interest in Gencorp Industries Inc.

The Palace made the statement after Mayor Duterte said during the resumption of the impeachment trial on Tuesday that he had no prior knowledge of the company and only learned about it when it was raised before the Senate Impeachment Court.

READ: Baste Duterte says he only heard of GenCorp during impeach trial

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Gencorp secured at least P34 million worth of contracts from Davao City between 2022 and 2025, raising a potential conflict of interest since Vice President Duterte is prohibited from directly or indirectly participating in any business during her term.

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She has declared stock ownership in Gencorp in her sworn Statement of Assets, Liabilities, and Net Worth since 2013.

At a briefing, Palace Press Officer Claire Castro said a mayor, or any leader, cannot simply claim to have no knowledge of what is happening under their jurisdiction.

Officials also cannot simply turn a blind eye to unusual activities taking place under their jurisdiction, she added.

“Some siblings may tell the truth, while others may lie to cover up for and defend their own sibling. There are also siblings who may lie to discredit their own sibling,” Castro said.

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“So in such circumstances, we cannot really say because it is what is in a person’s heart and mind that determines whether they are lying or not. But a mayor, or any leader or official, when you have authority over an agency or an organization, even over areas or entire countries, you cannot simply say that you had no knowledge, that you did not look into it, or that you did not care,” she added.

Castro clarified that she was not determining whether Mayor Duterte was covering up for his sister or whether he had any liability over the alleged conflict of interest involving Gencorp.

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READ: Palace: Velasco should clear name over alleged Duterte cash links

“What he showed yesterday was simply that he had no knowledge. He did not know, he did not look into it, and it seemed as though he did not care,” she said.

“If Mayor Baste Duterte has any liability, we are not the ones who should judge that. Perhaps it is the people who should decide, because a leader should not be allowed to remain in a position of authority while constantly claiming to have no knowledge or no concern,” she added.

During the impeachment trial, Senator-Judge Panfilo Lacson asked Mayor Duterte whether his lawyers had briefed him on the Arias v. Sandiganbayan doctrine before he testified.

Mayor Duterte said they had not.

The doctrine recognizes that heads of government offices may reasonably rely on their subordinates in performing official duties, particularly in the processing of documents and transactions.

According to Castro, an official may invoke the doctrine if he or she acted in good faith. However, if officials see irregularities and there are already signs that something is improper, they can no longer invoke the doctrine to cover up their own shortcomings or protect an ally or sibling.

“Maybe, as we said, one year could still be considered good faith; one and a half years, perhaps, could still be understandable. But when it goes on for a longer period, and you still fail to notice it, even though you continue to transact with the same company, then perhaps it is time to start thinking about it,” she explained.

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“This is not just for Mayor Baste Duterte; it applies to all leaders. You should also remain alert. You cannot simply invoke Arias v. Sandiganbayan just to save yourselves,” she added. /mcm