Sara did not step down as board member of Davao-based private firm after assuming VP: SEC witness

Records from the Securities and Exchange Commission (SEC) showed that Vice President Sara Duterte allegedly did not divest as a stakeholder in Davao City-based private firm Metro City Chow Foods Corp., despite assuming the second-highest office in 2022, purportedly in violation of the Constitution.

The records in question were presented to the Senate impeachment court on Day 27 of Duterte’s trial on Monday, and were attested to by SEC Company Registration and Monitoring Department Director Gerardo del Rosario, one of the witnesses for Article II of the Articles of Impeachment, which accuses the VP of acquiring unexplained wealth.

Based on the articles of incorporation filed with the SEC, Duterte was identified as an incorporator and director of the company in 2016, with an initial subscription of P50,000 for shares. Since then, until 2025, she owned 20 percent of the company’s stake. 

The SEC records showed that the company had an authorized capital stock of P1 million in 2016.

From 2018 to 2025, Duterte was consistently listed as a board member and served on the executive and compensation committees, according to the General Information Sheet. The period overlapped with her tenure as Vice President, starting in 2022. 

According to Del Rosario, the election of the board of directors generally happens annually. They are elected by shareholders.

“Sir, you are a lawyer, right? It appears here that VP Sara served on the board of directors from 2022 to 2025... As a lawyer, is it permissible for the Vice President, once sworn into office, to continue serving as a member of a company's board of directors?” private prosecutor Erwin Matib asked.

This met with a swift objection from defense counsel Justin Gular, who argued that Del Rosario was “clearly incompetent” to provide such legal interpretation. 

Presiding Officer Chiz Escudero, however, overruled the objection to ascertain whether the SEC took necessary actions if it indeed deemed it illegal.

“We have a provision in our Constitution that states that the President, Vice President, Cabinet members, and even their deputies cannot hold another office, have another employment, engage in another profession, or maintain business interests, in order to avoid a conflict of interest,” Del Rosario responded in Filipino.

The witness was referring to Article 7, Section 13 of the 1987 Constitution. This provision prohibits the officials mentioned from directly or indirectly participating in business, practicing any other profession, or holding a financial interest in any government contract, franchise, or special privilege during their tenure. 

Escudero, meanwhile, pointed out that the provision did not explicitly state that the said officials are barred from engaging in “business interests.” 

Several senator-judges questioned Del Rosario about the SEC’s supposed failure to flag public officials doing business while in office. The witness, however, countered that it is not the SEC’s mandate to actively monitor or report government officials who register businesses during their tenure, noting that the process is automated. 

The prosecution has accused Duterte of acquiring unexplained wealth, inconsistencies in her SALN, and non-compliance with the mandatory divestment of business interests. 

They argued that these constitute betrayal of public trust and grounds for her impeachment. 

A conviction in an impeachment trial carries a penalty of immediate removal from office and permanent disqualification from holding public office, which could derail Duterte’s presidential bid in the 2028 elections.