Sara Duterte impeachment trial Day 42: Loose investment, conflict of interest raised

Vice President Sara Duterte’s loose investment in GenCorp Industries Inc., which earned her P2.14 million in income despite not being listed as the firm’s shareholder in corporate records, took center stage during Day 42 of her impeachment trial.

Lawyer Suzette Balucanag-Punay, in-house counsel of GenCorp and Metro City Chow Foods Corp., testified that this loose interest stemmed from the investment she made in Davao Bounty Times Corporation, an entity that was supposed to operate the Jollibee Times Square branch in Davao City.

Punay, however, said the subject Jollibee branch was not granted a franchise and that it opened under Great Jolly Times Food Corp., which eventually became GenCorp.

Punay’s testimony, however, did not explain why GenCorp was paying out the Vice President for her return of capital worth over P2 million from 2022 to 2025 when her investment was made to Davao Bounty Times Corporation.

Impeachment court presiding officer Senator Francis Escudero told Punay they will issue a subpoena for additional documents that would justify the legality of GenCorp’s payout to the Vice President.

Ahead of disclosing Duterte's loose interest in GenCorp, Punay said that the Vice President is not a stockholder of the company, one of her declared business interests in her Statement of Assets, Liabilities and Net Worth (SALN).

Punay said the Vice President’s name did not appear on the General Information Sheets (GIS) of GenCorp from 2022 to 2025.

Likewise, Punay said the Vice President did not receive dividends in those years since there were no dividends declared by the firm.

But upon further questioning of the senator-judges, she said that the P2.14 million was given to Duterte.

Senator-judge Francis Pangilinan said that Punay was wrong in saying that Duterte had no participation in GenCorp; being a recipient of a payout makes her a beneficiary.

During cross-examination of private prosecutor Lorna Kapunan, the defense witness also said that GenCorp has not issued an official or any public statement disputing Duterte's declaration that she is one of GenCorp’s stockholders.

Punay said it was not her responsibility to inform GenCorp about Duterte's SALN declarations identifying the company as one of her business interests, even after she assumed the vice presidency.

"I believe that my function as counsel of GenCorp [does not include] looking at other people's SALNs and adjusting our records just because somebody declared that he [or she] is a stockholder of our corporation," she said.

Senate President Sherwin Gatchalian said an apparent conflict of interest situation has emerged from Punay’s testimony because GenCorp paid P2.14 million to Duterte and at the same time bagged P33 million worth of government contracts from the Davao City government led by the Vice President’s brother, Mayor Sebastian Duterte.

“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.)

Meanwhile, Punay also said that Duterte has no participation in Metro City Chow’s company affairs even if the company’s GIS from 2022 to 2025 lists her as a member of the Board of Directors and a member of the compensation committee.

“She did not participate…I have not seen her in the meetings, either board meetings or even company parties, even in the store, in the branch,” she said.

The witness also claimed that Duterte does not participate in the decision-making process, the operational management, or in the administration of the properties of the company. —LDF, GMA News