Financial analyst flags Sara-linked firm's P1-B undeclared income with BIR as 'fraud'

Gencorp Industries Inc., a Davao-based company in which Vice President Sara Duterte declared stock ownership, had undeclared revenue of a staggering P1.04 billion to the Bureau of Internal Revenue from 2022 to 2025, a financial analyst told the Senate impeachment court Friday.

The period overlaps with Duterte’s tenure as vice president.

Alexander Cabrera, a forensic financial analyst, provided the breakdown showing that undeclared inflows of Gencorp amounted to P279.3 million in 2023, P370.3 million in 2024, and P414.3 million in 2025.

This means that the revenue declared by the corporation in its income tax returns (ITRs) was understated by an average of 87 percent year-on-year. Cabrera noted that the glaring discrepancy is “no joke” and “amounts to fraud.”

“[The] total amount in four years is P1,049,021,912…If the amount you are concealing is that substantial, then that is fraudulent,” he said in Filipino.

ITRs must be filed with the BIR. Earlier in the trial, BIR Commissioner chief of staff Anne Loraine Garcia-Marquez said the bureau can file criminal charges against suspected tax evaders if its internal audit findings found willful failure to pay or file legitimate returns.

Duterte identified herself as an incorporator and stockholder of Gencorp, based on her past Statement of Assets, Liabilities and Net Worth (SALNs), though Securities and Exchange Commission records do not list her as one.

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 while in office.

Of the P1.04 billion undeclared inflows, Cabral said more than P200 million was attributed to Duterte, based on her estimated economic interest in the company.

The breakdown is as follows: P55.9 million in 2023, P74.1 million in 2024, and P82.9 million in 2025.

House prosecutor Chel Diokno asked him whether the computation was just “made up,” but Cabrera contended that it was based on a conservative 20 percent stake computation through what he called “sensitivity analysis," a principle in forensic accounting.

“This is our expert calculation. But we used sensitivity analysis. As we said earlier, 45 percent of what we used is 20 percent,” he said.

Cabrera was the prosecution's last witness before it wrapped up its presentation of evidence.

His testimony centers on Article II of the Articles of Impeachment, which accuses the VP of amassing unexplained wealth, discrepancies in her SALN, and failure to divest business interests.

Gencorp holds multiple Jollibee branches in Davao City, Duterte’s political bailiwick.

It was also the same company that bagged P34.2 million worth of contracts from the Davao local government from 21 July 2022 to 23 June this year.

The LGU’s local chief executive is the VP’s younger brother, Baste Duterte.