Metro Manila, Philippines – Davao City Mayor Sebastian “Baste” Duterte testified on Tuesday, Sept. 29, that he was unaware of his sister Vice President Sara Duterte’s declared business interest in a company that transacted millions with the local government.
He told the Senate Impeachment Court that he would not have allowed city hall to award contracts to GenCorp Industries Inc. had he known of her interest.
GenCorp, which Sara Duterte declared as a business interest in her 2024 and 2025 Statements of Assets, Liabilities and Net Worth (SALNs), received 19 contracts from Davao City since 2022, said the mayor.
That was four more than the 15 contracts earlier cited by a Philippine Government Electronic Procurement System (PhilGEPS) official.
Duterte said he only learned about GenCorp when issues involving the company were raised in the impeachment trial and after he received a subpoena.
He said he did not personally review the company’s contracts. He had delegated authority to sign contracts to an assistant city administrator.
“You are therefore not familiar, Mr. Witness, that your sister, the vice president, has actually declared an interest in GenCorp?” said private prosecutor Theodore Te, who was allowed to ask leading questions after Duterte was declared a hostile witness.
“No,” Duterte responded.
He acknowledged that as Davao City’s head of procuring entity, he remained accountable for purchasing decisions.
Presiding Officer Chiz Escudero then asked whether Duterte would have allowed GenCorp to receive city contracts if he knew his sister was a stockholder.
“Kung siya po ay stockholder ng GenCorp at nalalaman ninyo, hindi niyo papayagan ma-award-an ng kontrata sa Davao?” Escudero asked.
[Translation: If she were a stockholder of GenCorp and you knew about it, you would not allow the company to be awarded a contract in Davao?]
“I would not allow it,” Duterte replied.
During cross-examination, the defense asked why he did not know about his sister’s business interests or the contents of her SALNs.
“We simply do not discuss these. It’s her privacy,” Duterte said, adding, “It’s not my responsibility to know this.”
Duterte also confirmed that only four of GenCorp’s 19 Davao City contracts went through competitive public bidding.
Senator-judge Raffy Tulfo later questioned him about a requirement that suppliers must have been operating for at least five years. GenCorp was registered in 2020 but began receiving Davao City contracts in 2022.
Duterte said the bids and awards committee may have modified the requirement but could not say when or why. He said he was sure there would have been a valid reason.
He also acknowledged a business relationship with Jaime T. Cruz, whom he identified as a co-shareholder in another company. Cruz has been identified during the proceedings as the person behind GenCorp.
During cross-examination, Duterte maintained that the vice president never intervened in Davao City procurement. He also said she never asked him for a favor involving GenCorp or sought special treatment for the company.
The prosecution, however, questioned how Duterte could have been unaware of the company’s transactions with the city.
House prosecutor Joel Chua and prosecution spokesperson Zia Adiong pointed to his position as head of procuring entity, his business ties with Cruz, and the number of GenCorp contracts awarded by the city. They also questioned the circumstances surrounding the procurement requirements.
Private prosecutor Jay Tolosa said the senator-judges would ultimately determine whether those circumstances amounted to a violation of the prohibitions alleged against the vice president under Article II, or the charge of unexplained wealth, false SALN, and failure to divest business interests.
The Constitution bars the president and vice president from directly or indirectly participating in business or having a financial interest in government contracts and requires them to avoid conflicts of interest.
