Metro Manila, Philippines – A defense witness told the Senate Impeachment Court that Vice President Sara Duterte received ₱2.14 million from GenCorp Industries, Inc. for over four years as a return of investment.
In disclosing the amount of what she called return of capital, however, the corporate counsel could not explain how the amount was determined or provide records showing the full amount of the vice president’s original investment.
GenCorp lawyer Suzette Balucanag-Punay testified on Wednesday, Nov. 11, as the defense sought to dispute a forensic report that attributed undeclared income to Duterte from GenCorp. The defense presented her to challenge the forensic report of the prosecution’s expert witness and establish that Duterte was not a stockholder, officer or director of the company and wasn’t involved in its management.
During cross-examination, the prosecution and the senator-judges questioned the basis for the payouts, which Punay repeatedly described as “return of capital.”
Records from Davao Bounty Times Foods Corporation brought by the witness showed that Duterte subscribed to 1,875 shares worth ₱187,500 but paid only ₱46,875.
Punay said Davao Bounty was supposed to operate the Jollibee fast food branch at Times Square in Davao City but never secured the franchise. The branch operated under other corporations, namely, Great Jolly Times Food and Times Square Bee Foods, before GenCorp took over.
She described Duterte’s interest as a “loose investment” carried over from Davao Bounty to the companies that later operated the branch. She said the ₱2.14 million in payments from GenCorp between 2022 and 2025 represented the return of that investment.
Presiding Officer Chiz Escudero pressed Punay on the discrepancy between the documented ₱46,875 contribution and the ₱2.14 million paid to Duterte.
He pointed out that the payments were about 45 times her documented contribution and questioned whether they could still be considered a return of capital, rather than a return on investment.
“Di na po ito return of investment, return on investment na po ito,” Escudero said, explaining that a return of capital means the original amount invested has been given back, while a return on investment suggests earnings from that capital.
Punay said she knew of no other investment that could account for the difference, but could not verify whether there were other contributions.
Escudero also asked why companies that did not own the Jollibee franchise or lease the property had continued making payments to Duterte. Punay said she could not identify the exact consideration for the payments.
“Didn’t it raise a big question mark on your part?” Escudero asked, to which Punay answered, “It did, your honor.”
“You just testified under oath that she was receiving money from a private corporation in relation to a company she owned way back in 2007,” the presiding officer pointed out.
Senator-judge Risa Hontiveros also questioned Punay about the nature of the payments. She pointed out that based on documents, Duterte had received monthly payments over several years, which appeared to be earnings or profits rather than simply the return of her original capital. Hontiveros also noted that GenCorp had not declared dividends since its incorporation.
Hontiveros asked whether Duterte had maintained a financial interest in the business from 2007 through 2024, including after the investment was carried over to GenCorp.
The senator-judge then cited the constitutional restriction prohibiting the vice president from directly or indirectly participating in any business during her tenure.
Punay initially said she was unsure whether the arrangement was covered by the prohibition but acknowledged the constitutional provision when Hontiveros read it aloud.
Hontiveros also pointed out that Duterte had declared a business interest in GenCorp in her 2024 and 2025 Statements of Assets, Liabilities and Net worth (SALN).
Metro City Chow shareholdings
Punay also testified as corporate counsel of the Metro City Chow Foods Corporation, another company in the fast food industry that is managing another fast food branch, Chowking, and her workplace since 2022.
Its incorporators were Jaime Cruz, Ritchie Cruz, Kimberly Cruz, Girlie Dela Cruz, and Sara Duterte. The vice president held 20 percent of shareholdings in the company, said the corporate counsel, in the forms of ₱50,000 in subscribed capital and ₱12,500 paid-up capital.
Punay confirmed that Duterte was a member of the board of directors and its compensation committee from 2022 to 2025. However, she said that Duterte has never joined any company meeting and gathering, nor did she have any influence on its financial transactions and property management.
Defense counsel Justin Gular then linked these findings into asking whether the vice president had received any honorarium for her membership, or did she have any participation in the filing of Metro City Chow Foods’s general information sheets. Punay denied Duterte had any connection to these.
The corporate counsel also said Duterte did not receive any interest from the franchise acquisition as the contract was granted to the company itself, thus, it pays the franchise fee.
Meanwhile, Punay confirmed during the senator-judges questioning that Duterte does not receive any amount from Metro City Chow Foods as it was losing until 2024, unlike GenCorp which had posted a net income.
More records
Questions over the payouts prompted the impeachment court to require the submission of more corporate records.
Senator-judge Erwin Tulfo asked Punay to submit documents supporting the payments, including canceled checks and payment vouchers.
Escudero directed the issuance of a subpoena for the encashed checks corresponding to the amounts listed in a document signed by GenCorp’s accountant, as well as records explaining how the payments were recorded in the company’s books.
Defense lawyer Michael Poa announced that the defense would no longer present most of the subpoenaed bank representatives, except for the BPI representative.
He identified the remaining witnesses as BPI’s Paul Roderick Ysmael, lawyers Anel Antero and Chadrin Parian, and Quezon City prosecutor Vimar Barcellano, for Thursday, Nov. 12.
