Beyond Sara: Baste, Pulong also 'bizz partners' of Jaime Tan Cruz

Davao City Mayor Baste Duterte and Davao Rep. Paolo Duterte also “share” business dealings with Jaime Tan Cruz, the alleged business partner of their sister, Vice President Sara Duterte, in Gencorp Industries Inc., which bagged P34.2 million in contracts from the Davao LGU.

The development emerged on Day 31 of the impeachment trial on Tuesday, as the prosecution continued to scrutinize the VP’s purported dealings with the Davao local government through Gencorp amid speculation of a possible conflict of interest.

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

A 2026 SEC document explicitly listed Baste and Paolo as shareholders of Chinese Gen Bee Foods Corp.

Baste, a hostile witness, admitted that he is acquainted with Cruz through their business dealings. Private prosecutor Theodore Te asked the mayor whether he was referring to Chinese Gen Bee Foods Corp., but Baste answered, “I could not remember.”

Te showed him a copy of the corporation’s general information sheet, in which he and Paolo Cruz appeared as shareholders. Baste examined the document and confirmed they were listed.

“You’re also familiar with Mr. Jaime T. Cruz, as he was the one who was appointed by your father as special envoy to China?” Te asked. “Probably yes. I don’t know,” the mayor replied.

Te also asked whether this is the same Jaime Tan Cruz, whom his father, former President Rodrigo Duterte, eyed to head PhilHealth during his stint, but Baste answered in the negative.

Previous reports indicated that Tan, a doctor, turned down the offered post.

Why is Cruz relevant?

Cruz reportedly owns the JTC Group of Companies, a conglomerate in Metro Manila and Davao that franchises fast-food restaurants, among other businesses.

Previously, during the impeachment trial, it was also revealed that Cruz was an incorporator, director, or shareholder in six food companies linked to the VP and her husband, Mans Carpio.

These corporations are City Hall King Chow, Metro City Chow, Great Jolly Times Food, Davao New Royal Taipan, Davao Emerging Taipans, and Davao Bounty Times.

Aside from this, it was also found that Cruz, through JTC, was the major stockholder of Gencorp, which secured P34.2 million in contracts for catering and food services from the Davao City LGU.

These contracts were awarded from 21 July 2022 to 23 June this year, overlapping with Duterte’s tenure as vice president.

“So, we cannot say that his relationship with your family is distant. Rather, it could be described that he has a close relationship with your family," Senator-judge Risa Hontiveros asked the mayor in Filipino.

Baste replied in the affirmative, saying Cruz is a “friend” of his father, “close” to their family and a renowned businessman in Davao.

“If you had known that she (VP) was a shareholder of Gencorp, you wouldn’t have allowed it to be awarded any contract in Davao, correct?” Presiding Officer Chiz Escudero asked in Filipino.

“I would not allow it,” Baste responded.

Baste questioned: Why didn’t you flag it?

According to the mayor, he was unaware of any business interests of Gencorp or its purported connection to his sister. Additionally, he claimed that he never discussed the corporation with Cruz.

As the local chief executive, Baste is also the head of the procuring entity responsible for overseeing the LGU’s overall procurement activities and their legal compliance.

Senator-judge Win Gatchalian questioned Baste about whether he flagged Gencorp for repeatedly emerging as the winning bidder, given that the procurement law mandates competitive bidding and that local governments typically have several caterers participating.

Baste claimed that he did not sign or review the 19 contracts, and relied solely on his confidence in Atty. Tristan Dwight Domingo—the assistant city administrator for the administration of the Davao LGU—who assured him that lawful procedures were followed.

Baste confirmed that he delegated Domingo as his “representative,” giving him the authority to sign government contracts on his behalf. He, however, said he could not review all the contracts Domingo signs, citing the volume of documents they need to approve each day.

Nonetheless, Baste maintained that there is no illegality in the dealings as long as the VP’s name is not explicitly in the contracts.

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.

The prosecution has accused the VP of acquiring unexplained wealth, deliberately declaring inaccurate SALNs, 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.