Firm linked to Sara bags nearly P36-M gov't contracts in Davao: PhilGEPS witness

Firm linked to Sara bags nearly P36-M gov't contracts in Davao: PhilGEPS witness | Daily Tribune

Based on the PhilGEPS database, the lion’s share of government contracts secured by Gencorp were awarded by PhilHealth-Davao City (33), followed by the Davao local government (15), and OWWA-Davao City (1).

Duterte identified herself as an incorporator and stockholder of Gencorp, based on her 2016 to 2025 SALNs, though Gencorp’s records filed with the Securities and Exchange Commission do not list her as one. The corporation was previously Timesquare Bee Foods Corp. and Great Jolly Times Foods Corp.

Of the nearly P36 million worth of contracts bagged by Gencorp, the largest share came from the Davao LGU at P34.2 million. These contracts were awarded to the company from 21 July 2022 to 23 June this year, a period that overlaps with Duterte’s term as VP.

Meanwhile, the 33 contracts from PhilHealth-Davao amounted to P1.33 million, while OWWA-Davao totaled P330,000.

“Upon receiving [the subpoena from the impeachment court], we processed, searched the repository of [the] procurement database based on the requested merchant name, which is Gencorp Industries Inc. And upon research, it resulted [in] 49 awarded contracts to Gencorp,” Sopeña told the impeachment court.

Of the 49 contracts, Sopeña said they extracted 231 procurement-related documents totaling over 480 pages.

Sopeña said he signed and certified all the documents, both digital and hard copy, presented before the impeachment court. However, it was contested by defense counsel Robie Batungbacal, noting that the summary was undated, unsigned, and not certified by the witness.

Sopeña was one of the prosecution's witnesses in Article II of the Articles of Impeachment, which accuses the VP of acquiring unexplained wealth.

The prosecution has accused the VP of deliberately misrepresenting entries in her Statements of Assets, Liabilities, and Net Worth (SALNs) to conceal unexplained wealth and non-compliance with the mandatory divestment of business interests.

The Constitution bars the President, Vice President, Cabinet members, among others, from directly or indirectly participating in any business or holding a financial interest in any government contract during their term.

Lead prosecutor Gerville Luistro noted that the official responsible for approving the LGU’s dealings with Gencrop was Davao City Mayor Baste Duterte, the VP’s younger brother.

“Section 5, RA 12009 (the New Government Procurement Act), the HOPE (head of procuring entity) of the LGU is the local chief executive and ultimately, Your Honor, we invoke mandatory judicial notice [of] the fact that the local chief executive of Davao City, the head of the procuring entity, the one who approves the resolution of the BAC (bids and awards committee), is no less than Mayor Sebastian Duterte,” the Batangas lawmaker pointed out.

The impeachment court had already subpoenaed Baste to testify in her sister’s trial next week.

Shortly after the impeachment court announced it on Monday, Baste issued a statement insisting that he and Davao City officials had no knowledge that the VP holds an interest in Gencorp, noting that neither her name nor the surname “Duterte” appears in the firm’s official documents submitted to the LGU for the dealings.

Aside from Gencorp, SEC records showed that the VP was listed as an incorporator and director of the Davao City-based private firm Metro City Chow Foods Corp. in 2016 and owned a 20 percent stake in the company until 2025.

From 2018 to 2025, Duterte was consistently listed as a board member and served on the corporation's executive and compensation committees, despite her election as Vice President in 2022.