GenCorp: No shares for Sara; P2.14M returned

Vice President Sara Duterte received P2.14 million from GenCorp Industries Inc. between 2022 and 2025 as a return of capital from an investment in a Davao City Jollibee branch, even though she was not listed as a stockholder or corporate officer, the company’s legal counsel testified Wednesday.

Atty. Suzette Balucanag-Punay told the Senate impeachment court that GenCorp disbursed a total of P2,142,369.14 to Duterte over the four-year period through bank checks issued by its Jollibee Times Square branch.

The payments were made in four tranches: P337,500 in 2022, P555,750 in 2023, P612,419 in 2024 and P636,700 in 2025.

“It’s a return of capital,” Punay said when asked by defense lawyer Justin Nicol Gular to explain the disbursements.

She described Duterte’s connection to the business as a “loose investment,” saying the Vice President had no shares or corporate position in GenCorp from 2022 to 2025. Her name did not appear in the company’s General Information Sheets filed during the period.

Punay, GenCorp’s in-house counsel, said the investment originated in 2007 through Davao Bounty Foods Corp., which was supposedly intended to operate the Jollibee Times Square branch but failed to secure the franchise.

The branch was eventually operated by Great Jollibee Times Foods Corp. before its operations were transferred in 2013 to Times Square Bee Foods Corp. Both companies were among the previous names of GenCorp.

Punay said Duterte’s investment was carried over through the successive corporate arrangements, although she could not establish its original amount.

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

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

Presiding officer Sen. Francis Escudero pressed the witness on the basis for the payments, asking whether she knew the nature and amount of Duterte’s investment.

Punay acknowledged that she could not verify either from written records.

The witness also said GenCorp declared no dividends during the period, meaning Duterte received no dividend income from the corporation.

Disputes 20% ownership finding

Punay also disputed the findings of prosecution financial forensic analyst Alexander Cabrera, whose report attributed a 20-percent ownership interest in GenCorp to Duterte.

Cabrera had testified that each of the company’s Jollibee branches required an initial annual capital contribution of P35 million.

GenCorp operates five branches in Davao City: Times Square, Matina Crossing, Gaisano, Abreeza and Bolton.

“This is inaccurate. It is inconsistent with the records of the corporation,” Punay said of Cabrera’s findings.

She questioned how Duterte’s supposed 20-percent stake could be reconciled with GenCorp’s total paid-up capital of only P1.25 million.

Punay described the forensic finding as “absurd,” but Escudero later ordered the remark stricken from the record following an objection by private prosecutor Atty. Lorna Kapunan.

The defense presented Punay, its fourth witness for Article II of the impeachment case, to counter allegations that Duterte accumulated unexplained wealth and failed to divest herself of business interests while in public office.

However, House prosecutors had earlier presented Philippine Government Electronic Procurement System official Rendell Sopeña, who testified that GenCorp secured 49 government contracts worth P35.88 million from the Davao City government, PhilHealth Region XI and the Overseas Workers Welfare Administration Region XI.

Of the total, P34.22 million came from 15 contracts awarded by the Davao City government.

Duterte’s previous Statements of Assets, Liabilities and Net Worth identified her as an incorporator and stockholder of GenCorp, formerly known as Times Square Bee Foods Corp. and Great Jolly Times Foods Corp., although its corporate filings did not list her as a shareholder.

The Constitution prohibits the Vice President, along with the President, Cabinet members and other specified officials, from directly or indirectly participating in business or holding a financial interest in government contracts during their tenure.

The prosecution has argued that the payments Duterte received from GenCorp while serving as Vice President raise questions about her continued financial interests in private businesses.

Duterte has denied wrongdoing.