Sara Duterte had 'loose investment' in GenCorp, received P2.14M — witness - GMA Network

Vice President Sara Duterte had a “loose investment” in GenCorp. Industries Inc., from which she received P2.14 million in returns of capital from 2022 to 2025, a defense witness told the Senate impeachment court on Wednesday.

Lawyer Suzette Balucanag-Punay, in-house counsel of GenCorp Industries Inc. and Metro City Chow Foods Corp., made the disclosure during her direct examination on the 42nd day of the impeachment trial, citing GenCorp.'s corporate records.

“She has an interest in the form… she has a loose investment in the Jollibee Times Square branch,” Punay said, referring to one of the five Jollibee branches operated by GenCorp.

Punay was presented as a defense witness in connection with Article II of the impeachment complaint against Duterte, which accuses her of betrayal of public trust and culpable violation of the Constitution over her alleged accumulation of unexplained wealth, non-disclosure of assets and failure to divest from business interests while in public office.

Her disclosure of Duterte's “loose investment” came after she initially testified that the Vice President had no links or investments in GenCorp.

According to Punay, Duterte received P2.14 million in what the company recorded as a “return of capital” from 2022 to 2025.

The amount was significantly lower than the P212 million in alleged returns earlier presented by prosecution witness and financial forensic expert Alex Cabrera.

“It (P2.14 million) is coming from the contribution that the Vice President made for Davao Bounty Times Food Corporation before the actual commencement of operations of Jollibee Times Square,” Punay said.

Punay explained that while Duterte made the investment through Davao Bounty Times Food Corporation, the company was not granted a franchise to operate the Jollibee branch.

Instead, the Jollibee Times Square branch operated under a franchise granted to Great Jolly Times Foods Corp., an entity that eventually became GenCorp. Industries Inc.

However, when Senate impeachment court presiding officer Francis Escudero asked about the basis for the monthly remittances to Duterte, including payments in June 2022, January to April 2024, and other months in 2023 and 2025, Punay said she had no written records to establish the exact amount of the Vice President's investment in GenCorp.

“I actually did not see a written document [for the investment of the Vice President],” she said.

Escudero then pressed Punay on why Duterte was receiving a “return of capital.”

“The return of capital was from the loose investment,” Punay replied.

Asked to define what she meant by a “loose investment,” Punay said: “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.”

“Unfortunately, I could not verify the amount because there are no written records for this investment,” she added.

Later in the proceedings, Escudero again questioned the basis for GenCorp.'s payments to Duterte, pointing out that Punay's testimony had not established a link between Davao Bounty Times Food Corp. and GenCorp.

“What is the interest of Davao Bounty in all of this when they do not own the lease, they do not own the franchise? Because this [Davao Bounty] is a different company from Great Jolly Times [which later became GenCorp.]. Didn't it raise a big question mark on your part?” Escudero asked.

“It did, Your Honor,” Punay replied.

Escudero said Punay should submit additional documents to establish the legal basis for GenCorp.'s payments to Duterte, even though the Vice President was not listed as a GenCorp. shareholder in the company's corporate records.

“This is quite a serious allegation, ma'am, from a different perspective. The Vice President, during different times in her career, was a public officer. So why would she be receiving monies from a private corporation that she has no interest in?” Escudero said.

“You just testified under oath that she was receiving monies from a private corporation in relation to a company she owned way back in 2007 that has no ownership over a franchise, no leasehold rights over the property where the Jollibee is located, and yet she is receiving money from a private corporation,” he added.

“It behooves you, especially as a witness for the defense, to kindly explain via the submission of documents requested by Senator-Judge Erwin [Tulfo] and the presiding officer what these monies are for in order to clear the air and to prove that these are not illegal or in any way violative of any laws,” Escudero said.

Punay said she agreed with Escudero.

The presiding officer said the impeachment court would issue a subpoena for the pertinent documents related to Punay's testimony.

In a separate press conference, House prosecutor Joel Chua of Manila said Punay's testimony about the Vice President receiving payouts from GenCorp. was a cause for concern, particularly because the witness could not explain the basis for the payments even though Duterte was not listed as a shareholder in the company's corporate records.

“The monthly contribution she is receiving, isn't this bribery? Because GenCorp. has business transactions with the Davao City government. So instead of rebutting our allegations, the witness even sank their ship,” Chua said.

“I even thought she was a prosecution witness because obviously, she herself is getting confused with what she is saying. Actually, her answers raised more questions,” he added.

House impeachment panel spokesperson Zia Adiong agreed, saying Punay's testimony showed that the Vice President had violated the constitutional ban on business participation by certain public officials.

“The Vice President has loose interest and was receiving monthly payouts from GenCorp. That is a violation of the Constitution,” Adiong said.

Private prosecutor Erwin Matib earlier cited two constitutional provisions that prohibit the President and Vice President from engaging in business or receiving other forms of emoluments during their tenure.

Section 13, Article VII of the Constitution prohibits the President, Vice President, Cabinet members and their deputies or assistants from directly or indirectly practicing any other profession, participating in any business or having financial interests in government contracts, franchises or special privileges granted by the government or its instrumentalities.

Section 6, Article VII also provides that the President and Vice President “shall not receive during their tenure any other emolument from the Government or any other source.”

Duterte's 2024 and 2025 Statements of Assets, Liabilities and Net Worth, which she jointly filed with her husband, Manases Carpio, were earlier presented by the prosecution as evidence of her business interests.

The documents listed GenCorp. Industries Inc., formerly known as Timesquare Bee Foods Corp. and Great Jolly Times Food, among her business interests.

Davao City Mayor Sebastian “Baste” Duterte, the Vice President's brother, earlier testified that the city government awarded P33 million worth of contracts to GenCorp.

He also said he was unaware that his sister had a business interest in the company.— MCG, GMA News

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