GenCorp counsel links Sara to P2.14M Jollibee capital returns during VP term

A defense witness disclosed on Wednesday that Vice President Sara Duterte received P2.14 million from Gencorp Industries Inc. between 2022 and 2025 as “return of capital” from her “loose investment” in a Jollibee branch run by the corporation.

Atty. Suzette Balucanag-Punay told the Senate impeachment court on Day 42 of the trial that the money was attributed to Duterte’s “loose investment” in Jollibee Times Square, one of the five branches Gencorp operates in Davao City.

“From the year 2022 to 2025, how much was the total disbursement from Gencorp Industries Inc. to Vice President Sara Zimmerman Duterte?” defense counsel Justin Gular asked his witness.

“It's a total of P2,142,369.14,” Punay answered. “It's a return of capital,” she added, responding to Gular’s follow-up question about why Gencorp disbursed the amount to Duterte.

She added that the money was disbursed to Duterte through bank checks issued by the Times Square branch, and was divided into four tranches: P337,500 in 2022, P555,750 in 2023, P612,419 in 2024, and P636,700 in 2025.

Punay is in-house counsel for Gencorp and Metro City Chow Foods Corp.—a company operating fast-food chains in Davao, in which Duterte also holds a 20 percent ownership stake.

Duterte identified herself as an incorporator and stockholder of Gencorp in her past SALNs, although records filed with the Securities and Exchange Commission do not list her as one.

Punay said the return of capital stemmed from Duterte’s 2007 business interest in Davao Bounty Foods Corp.

Davao Bounty was supposedly intended to operate the Times Square branch, but it failed to acquire the franchise and was eventually opened by Great Jollibee Times Food Corp.

“In 2013, the operation of Jollibee Times Square was transferred to Times Square Bee Foods Corporation,” she said.

What’s the connection?

Gencorp was formerly named Great Jolly Times Foods Corp. and Times Square Bee Foods Corp.

The defense called Punay as a witness to disprove the prosecution’s allegations that Duterte had any shareholdings or position in Gencorp and Metro City Chows while she was in office.

Punay initially denied a forensic report by financial analyst Alexander Cabrera—the prosecution’s witness—that attributed a 20 percent ownership stake and substantial capital in Gencorp to Duterte.

Cabrera earlier said that each branch has an initial annual capital contribution of P35 million.

Aside from Times Square, Gencorp operates other branches: Jollibee Matina Crossing; Jollibee Gaisano; Jollibee Abreeza; and Jollibee Bolton.

Punay maintained that Cabrera’s findings were “inconsistent” with Gencorp’s records.

However, she later admitted that Duterte’s investment in Davao Bounty was just “carried over” through successive corporations linked to Gencorp.

“So the investment was just carried over to Great Jollibee Times Foods Corporation. It's a loose investment because the Vice President is not a stockholder of Great Jollibee Times,” the witness said.

Presiding Officer Chiz Escudero asked Punay how much Duterte’s investment was and for documents proving it.

However, Punay said that she could not verify “because there are no written records for this investment.”

“So you don't know why she was being given a return on investment, and you don't know the nature of her loose investment in Times Square?” Escudero asked, to which Punay answered, “Yes, Your Honor.”

The alleged release of the return capital overlaps with Duterte’s tenure as vice president, which the prosecution argued violated the Constitution.

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.