Baste Duterte: Davao City unaware of VP Sara's GenCorp interests
MANILA, Philippines — Davao City Mayor Sebastian “Baste” Duterte said city officials were unaware that Vice President Sara Duterte had declared an interest in GenCorp Industries Inc., which had secured 19 contracts with the local government worth more than P33.2 million.
Baste made the statement in a post on his Facebook account late Monday, September 21, a day before he is scheduled to appear as a witness in his sister’s impeachment trial.
“I, and all other officials and employees of the City Government of Davao, never had any knowledge of Vice President Sara Z. Duterte holding an interest in GENCORP INDUSTRIES INC.,” he said.
Baste also said the vice president’s name or the surname “Duterte” did not appear in GenCorp’s official documents submitted for the transactions with the city.
“Neither the name Sara Zimmerman Duterte nor the surname ‘Duterte’ appears in any of the official documents, such as, among others, the Articles of Incorporation,” he said.
The mayor said GenCorp underwent evaluation for each transaction and was found to have submitted the lowest calculated responsive bid or offer.
He added that all 19 transactions were processed, reported and published through the Philippine Government Electronic Procurement System.
Of the 19 contracts, 13 had been completed while six were still ongoing, Baste said.
Four of the contracts were secured through competitive public bidding, while 15 were undertaken through small-value procurement.
The mayor said the transactions were above board. He also challenged anyone making allegations against the city government’s dealings with GenCorp to present verified and reliable evidence.
“I remain steadfast in my commitment to transparency, fairness and the absolute truth,” Baste said.
“This statement is issued ahead of any so-called lawful proceedings as I believe that the people, especially the people of the City of Davao, have the right to know,” he added.
SEC testimony
Baste’s statement came after the issue of Duterte’s business interests was raised during the 27th day of her impeachment trial on Monday.
Securities and Exchange Commission Company Registration and Monitoring Department Director Gerardo Fernando del Rosario testified that Duterte remained a shareholder and member of the board of directors of Metro City Chow Foods Corporation after she assumed office as vice president in 2022.
SEC records presented during the proceedings showed Duterte remained on the company’s board from 2022 to 2025. She was also listed as a 20% shareholder.
The prosecution cited Article VII, Section 13 of the 1987 Constitution, which prohibits the president, vice president, Cabinet members and their deputies or assistants from holding another office or employment during their tenure. The provision also bars them from directly or indirectly practicing another profession or participating in any business during their term.
Del Rosario, however, said it would be up to the Senate to determine whether Duterte’s continued role in the company constituted a violation of the Constitution. The SEC itself had not made such a determination.
The Metro City Chow Foods testimony is separate from GenCorp.
Duterte declared GenCorp as one of her business interests in her 2024 and 2025 Statements of Assets, Liabilities and Net Worth.
During Monday’s hearing, however, Del Rosario said Duterte’s name did not appear as an incorporator, director or stockholder in GenCorp’s corporate records. The company’s records instead identified JTC Group of Companies Philippines Inc. as its largest subscriber.
Del Rosario said a person could potentially have an indirect interest in GenCorp through JTC if that person controlled the latter company, but the corporate records presented to the impeachment court did not list Duterte directly in GenCorp.
Davao transactions
The prosecution is expected to examine the Davao City government’s transactions with GenCorp when Baste takes the witness stand.
Prosecution counsel Benjamin Tolosa Jr. earlier said Baste’s testimony would focus on whether GenCorp, which Duterte identified in her SALN as a business interest, had dealings with the Davao City government. The testimony is also expected to touch on allegations that Duterte failed to divest from business interests while serving as vice president.
Baste is scheduled to testify from September 28 to 30.
The impeachment trial will continue to discuss Article II of the Articles of Impeachment, which includes allegations involving Duterte’s wealth, SALN disclosures and alleged continued business interests while in office. — with a report from Ian Laqui
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