Sherwin Gatchalian flags GenCorp 'conflict of interest' over Sara Duterte payouts

Senator-judge and Senate President Sherwin Gatchalian on Wednesday raised a possible conflict of interest after GenCorp Industries Inc. paid Vice President Sara Duterte P2.14 million as supposed returns of capital while the company held several contracts with the Davao City government.

Gatchalian raised the issue during his interpellation of lawyer Suzette Balucanag-Punay, the in-house counsel of GenCorp and Metro City Chow Foods Corp., two companies linked to the Vice President, during the 42nd day of Duterte’s impeachment trial.

“Lumalabas ito sa kaha ng GenCorp. Tapos ang GenCorp, sa mga huling hearing, nagbebenta rin po ng pagkain sa Davao LGU (local government unit), 19 contracts between 2022 to 2025,” Gatchalian said.

(This payments came out of GenCorp.’s coffers. GenCorp., as revealed in previous hearings, also sold food to the Davao City government under 19 contracts from 2022 to 2025.)

“Tingin niyo hindi ba ito conflict of interest na ang GenCorp nagbabayad ng investment, loose investment kay Vice President Sara, pero sa kabilang banda, nagbebenta naman siya sa Davao LGU?” he asked.

(Don’t you think this is a conflict of interest, with GenCorp. paying Vice President Sara for her loose investment while also selling food to the Davao City government?)

Duterte’s brother, Sebastian “Baste” Duterte, is the incumbent Davao City mayor. The Vice President also previously served as the city’s mayor.

In response, Punay said the Davao City government contracts were fulfilled by GenCorp.’s Jollibee Bolton branch, the outlet nearest city hall, and not the branch where Duterte had her investment.

She explained that although GenCorp. owns the Bolton branch, Duterte’s "loose investment" was in the Jollibee Times Square branch. Each branch, she added, maintains a separate bank account.

Gatchalian, however, maintained that GenCorp. was still the entity making payments to the Vice President.

“So mukhang conflict of interest… Dahil sa kabilang banda, ‘yung investment binabayaran, ‘yung kita sa investment. Sa kabilang banda naman, nagbebenta ng pagkain sa Davao LGU,” he said.

(So it appears to be a conflict of interest because, on one hand, the returns on the investment are being paid, while on the other, the company is selling food to the Davao City government.)

Punay maintained that there was no conflict of interest.

“To my understanding, there's no conflict of interest because VP Sara is not part of the LGU,” she said.

Gatchalian countered that Duterte and the Davao City mayor are siblings.

Earlier in the hearing, Punay testified that Duterte had a “loose investment” in GenCorp, from which she received P2.14 million in returns of capital from 2022 to 2025.

The amount was significantly lower than the P212 million in alleged returns earlier presented by prosecution witness and financial forensic expert Alex Cabrera.

Duterte’s 2024 and 2025 Statements of Assets, Liabilities and Net Worth, which she jointly filed with her husband, Manases Carpio, were earlier presented by the prosecution as evidence of her business interests.

The documents listed GenCorp, formerly known as Times Square Bee Foods Corp. and Great Jolly Times Food, among her business interests.

Baste Duterte previously testified that the Davao City government had awarded P33 million worth of contracts to GenCorp.

He also said he was unaware that his sister had a business interest in the company.— MCG, GMA News

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