Duterte faces scrutiny over 47-fold Gencorp gap

Vice President Sara Duterte received more than P2.1 million in Gencorp Industries Inc. “return of capital” payments from 2022 to 2025, company counsel Suzette Balucanag-Punay testified on Nov. 11, according to a Rappler news report.

The payments drew scrutiny because prosecutors presented an incorporation document showing P46,000 in capital stock paid to Davao Bounty Foods Corporation; the P2.14 million figure cited in court is roughly 47 times that amount, according to Atlas360 calculations.

Balucanag-Punay disputed lawyer Alexander Cabrera’s forensic financial report, which said Duterte had a 20% stake in Gencorp and P250,000 in paid-up capital in the company. She told the impeachment court Duterte was not a stockholder, did not attend stockholder meetings, and had no role in Gencorp’s board, management or decisions.

“She is not a beneficial owner of Gencorp,” Balucanag-Punay told the court.

The payments she described were P337,500 in 2022, P555,750 from May to December 2023, P612,419 in 2024 and P636,700 in 2025. She said Duterte received no return of capital from January to April 2023.

“I termed it as a loose investment, your honor. It’s coming from the contributions that the Vice President made for Davao Bounty Times before the actual commencement of the operations of Jollibee Times Square,” Balucanag-Punay said.

Balucanag-Punay said Duterte first invested in Davao Bounty Foods Corporation, which tried to obtain a Jollibee franchise in Davao. She said the franchise was not granted and the investment was later carried to companies that operated the Jollibee Times Square branch, including Gencorp.

Gencorp now runs five Jollibee branches in Davao: Centerpoint Plaza, Davao Gaisano Mall, Abreeza Mall, Times Square Plaza Center and Bolton. Balucanag-Punay said Duterte’s investment covered only the Jollibee Times Square branch and not Gencorp, while also saying she did not know the investment’s nature or exact size.

Prosecution counsel Lorna Kapunan questioned the gap between the P46,000 capital stock figure and P2.14 million in returns. “I am unaware if there’s any because I cannot verify it from other records,” Balucanag-Punay said, adding that she could not confirm how the returns were computed or whether Duterte still receives income from Gencorp.

Senator-judge Raffy Tulfo challenged the witness’s preparedness. “You know that you will testify here, so you should have researched. Now, you cannot even present any document that would back up your claims that it was return of investment,” Tulfo said.

Article XII, Section VII of the 1987 Constitution bars the president, vice president and Cabinet members from holding other office or employment during their tenure. It also restricts them from participating in business or having financial interests in government contracts, franchises or special privileges.

Duterte is facing impeachment proceedings under Article II of the articles of impeachment, which concerns allegations of unexplained wealth, including allegedly undeclared assets and properties. Rappler reported that the defense also dropped testimony from subpoenaed bank officials except representatives from Bank of the Philippine Islands, with defense lawyer Michael Poa saying the move was meant to expedite proceedings.