Company’s silence draws scrutiny

Private prosecutor Atty. Lorna Kapunan on Wednesday questioned GenCorp Industries Inc.’s failure to act on Vice President Sara Duterte’s declaration of an interest in the company, despite corporate records showing that she was not a shareholder.

During the cross-examination of defense witness Atty. Suzette Balucanag-Punay, GenCorp’s in-house counsel, Kapunan asked whether the company had taken steps to dispute or clarify Duterte’s declaration in her Statement of Assets, Liabilities and Net Worth (SALN).

Kapunan argued that Balucanag-Punay had a duty to bring the matter to the company’s attention, particularly since she had learned of the declaration during the impeachment proceedings.

“Isn’t it your duty as internal counsel of GenCorp to call their attention to the fact that ‘Hey, the Vice President listed herself as a shareholder of our company?’ Did you not bring that to the attention of GenCorp?” Kapunan asked.

Balucanag-Punay initially answered in the negative, saying her role did not include monitoring other people’s SALNs or adjusting corporate records based on their declarations.

“I believe that my function as counsel of GenCorp, your Honor, does not involve looking at other people’s SALN and adjusting our records just because somebody declared that he is a stockholder of our corporation,” she said.

Kapunan countered that Duterte was not just “somebody” but the country’s vice president, stressing that the company’s sole in-house lawyer should bring such a discrepancy to management’s attention.

The witness then answered, “Yes, your Honor.”

Kapunan also cited Section 11 of the Code of Professional Responsibility and Accountability, which prohibits lawyers from making false representations and provides for liability for material damage caused by such representations.

She pointed out that, based on GenCorp’s General Information Sheet (GIS), Duterte was not listed as a shareholder, despite declaring an interest in the company in her SALNs.

Asked why Duterte had made such a declaration, Balucanag-Punay said she could not speak on the vice president’s behalf and suggested that prosecutors ask Duterte directly.

Kapunan then asked whether GenCorp had issued any statement disputing Duterte’s claimed shareholdings.

Balucanag-Punay said the company had made no such statement and that she did not know why it had remained silent.

The prosecution is examining discrepancies between GenCorp’s corporate records and Duterte’s 2024 and 2025 SALNs. Balucanag-Punay had earlier testified that Duterte’s name did not appear in the company’s records and that she received no dividends after assuming office in 2022.