SEC witness: Constitution bans VP Sara Duterte from participating in business - GMA Network

Vice President Sara Duterte is prohibited by the 1987 Constitution from participating in any business during her tenure, a witness from the Securities and Exchange Commission (SEC) said Monday.

SEC Company Registration and Monitoring Department Director Gerardo Fernando Del Rosario made the testimony during Day 27 of the impeachment trial of the Vice President, citing Article 7, Section 13 of the Constitution during the direct examination of private prosecutor Erwin Matib.

“We have a provision sa ating Constitution na nagsasabi na ang Presidente, Vice President, Cabinet members, maging ang kanilang deputies, ay hindi maaring maghold ng ibang opisina, magkaroon ng ibang trabaho, mag-engage sa ibang propesyon, magkaroon ng business interest, upang maiwasan po iyong conflict of interest,” Del Rosario replied when Matib asked him if Duterte is allowed to serve as one of the Board of Directors of the companies where she has business interests in based on SEC records.

(We have a provision in the Constitution saying that the President, Vice President, Cabinet members, and their deputies cannot hold other office, cannot have another job, cannot engage in a different profession, cannot engage in any other profession, cannot have business interests, to avoid conflict of interest.)

These businesses include: Metro City Chow Foods Corporation and City Hall King Chow Foods Corporation, among others.

Article 7, Section 13 of the Constitution states that “The President, Vice-President, the Members of the Cabinet, and their deputies or assistants shall not, unless otherwise provided in this Constitution, hold any other office or employment during their tenure. They shall not, during said tenure, directly or indirectly, practice any other profession, participate in any business, or be financially interested in any contract with, or in any franchise, or special privilege granted by the government or any subdivision, agency, or instrumentality thereof, including government-owned or controlled corporations or their subsidiaries.”

Senate impeachment court presiding officer Francis Escudero then asked Del Rosario if the phrase “business interests” is explicitly stated in the Constitution; Del Rosario replied that he understood it to mean that the prohibition was “to participate in business.”

Defense counsel Justin Gular objected to Matib’s question to Del Rosario by arguing that it calls for a conclusion of law and fact.

Escudero, however, allowed Matib to proceed.

“I'll allow it because I'm also interested to find out if they flagged it or not,” the impeachment court presiding officer said.

As of press time, Del Rosario has not mentioned flagging any business related to the Vice President.

He also told the court that Duterte remained one of the Board of Directors of Metro City Chow Foods Corporation until 2025 or even after she was elected and assumed office as Vice President.

“Ayon po sa GIS nila from 2022-2024, si VP Sara Duterte ay member pa rin po ng Board of Directors,” Del Rosario said, referring to General Information Sheet.

(Based on its GIS from 2022 to 2024, Vice President Duterte is a member of the Board of Directors [of Metro City Chow Foods Corp.)

Asked about the following year’s filing, the SEC official confirmed: “Member pa rin siya ng Board of Directors sa GIS ng 2025.”

(The GIS of the same firm showed the Vice President remained as one of the Board of Directors in year 2025.)

Asked by Matib to explain what a board does, Del Rosario described its authority over the corporation’s business and property, as well as its responsibilities to shareholders and government agencies.

On the board’s role in conducting the company’s business, Del Rosario replied, “Hindi po siya makakapag-conduct ng business kung wala po siyang Board of Directors.”

(A firm cannot conduct business without a Board of Directors.)

In a separate press conference, House prosecution panel spokesperson Zia Adiong of Lanao del Sur said that the SEC official's testimony shows that the Vice President breached the Constitution.

"In all the companies that she declared where she served as a shareholder, she did not divest. This is a clear violation of the Constitution," Adiong said in a press conference.

"Mas malinaw po ito kaysa sikat ng araw ’yung tahasang pag-violate ng ating Constitution," Adiong added.

(The Constitutional breach is as clear as day.) —AOL, GMA News