Sara Duterte had no hand in GenCorp – Davao City contracts, says witness

MANILA, Philippines — Vice President Sara Duterte had no involvement in the procurement contracts between GenCorp Industries Inc. and the Davao City local government unit (LGU) , a defense witness claimed on Wednesday.

On Day 42 of Duterte’s impeachment trial, GenCorp Corporate Counsel Suzette Balucanag-Punay told the Senate impeachment court that while Duterte had a “loose investment” in a Jollibee Times Square branch in Davao City, the government contracts between GenCorp and the LGU involved the Jollibee Bolton branch.

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These two are among the five Jollibee branches operated by GenCorp, a company Duterte declared in her statements of assets, liabilities, and net worth (SALNs).

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This, as the defense tries to debunk the prosecution’s claim that Duterte did not divest her business interests while serving as vice president.

In his direct examination, defense counsel Justin Nicol Gular asked Balucanag-Punay, “What government contracts did GenCorp enter into with government agencies and instrumentalities that were subject to the hearings of this impeachment court, if you are aware?”

To this, Balucanag-Punay said she knew about contracts mentioned by the vice president’s brother, Davao City Mayor Sebastian “Baste” Duterte when he testified before the court.

“And what do you know about these contracts, if anything, Atty. Suzette?” Gular asked.

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“These are contracts with the LGU of Davao City,” Balucanag-Punay said.

“And what branch was involved in these contracts with the LGU of Davao City, if you are aware po?” Gular asked again.

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“It’s Bolton branch, sir,” the witness replied.

“How about specifically Jollibee Times Square branch? What contracts with GenCorp Industries Inc. enter with Jollibee Times Square Branch and the LGU of Davao City?”

“I am not aware of any, for that branch, for Times Square,” she added.

Per Gular’s next inquiry, Balucanag-Punay also said she was not aware of any influence that the vice president had in relation to the process of bidding or securing the contracts between GenCorp and the Davao City.

“On the perspective of GenCorp, what did GenCorp ask from the vice president if any in relation to these contracts?” Gular then asked.

“Nothing, Sir,” the witness said.

Asked how much, if any, the vice president received from these contracts, Balucanag – Punay said, “nothing.”

Balucanag-Punay testified that she was aware that aside from the Davao LGU, GenCorp also had contracts with PhilHealth.

Asked if Duterte had any participation in GenCorp’s other government contracts, including those with PhilHealth, Balucanag-Punay reiterated, “[the vice president] has no participation.”

During the initial parts of the witness’ testimony, Balucanag-Punay explained that Duterte invested in the Jollibee Times Square branch in 2007. 

Back then, the said branch was supposed to be operated by Davao Bounty Times Food Corp., but since the franchise did not materialize, Duterte’s investment was carried over to Great Jolly Times, which operated the branch.

Subsequently, Time Square Bee Foods Corporation acquired this branch, hence, Duterte’s “loose investment” was again moved over.

Finally, when GenCorp acquired the Jollibee Times Square branch, the same “loose investment” was carried over to GenCorp.

Hence, Balucanag-Punay testified that Duterte had received a total of P2,142,369.14, with the following amounts as the year-on-year breakdown of her “return on capital”:

• 2022: P337,500
• 2023: P555,750 
• 2024: P612,419.14
• 2025: P636,700

Through Presiding Officer Francis Escudero’s interjections, Balucanag-Punay explained that “loose investment” was a term that only she coined, maintaining that Duterte is not a shareholder of GenCorp.

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She was also asked to explain how much Duterte initially invested, but the witness said she could not find any papers that would explain the nature of Duterte’s “loose investment.” /gsg