Witness: Sara Duterte had no GenCorp stake but received P2.1 million in capital returns

MANILA — Vice President Sara Duterte had no ownership stake in GenCorp Industries Inc. during her term as vice president, but received P2.1 million described as a “return of capital,” a defense witness told the Senate impeachment court on Wednesday.

Atty. Suzette Balucanag-Punay, GenCorp’s in-house counsel, said the company’s corporate records did not identify Duterte as a stockholder, officer or director from 2022 to 2025.

The witness was asked about payments Duterte received from GenCorp, which operates five Jollibee branches in Davao City.

She identified the payments as returns of capital, not dividends.

She said GenCorp did not declare dividends in 2022 and could not recall seeing any declaration in the company’s 2023 financial statements.

“There were no dividends declared,” she said.

The prosecution also questioned the discrepancy between GenCorp’s corporate records and a forensic report by prosecution witness Atty. Alexander Cabrera, which attributed a 20-percent ownership stake in the company to Duterte.

“This is inaccurate, sir. It is inconsistent from the records of the corporation,” Punay said.

She explained that GenCorp’s total paid-up capital, based on its corporate records, was P1.25 million. Adding the alleged 20-percent stake attributed to Duterte would bring the total to P1.5 million, which she could not reconcile with the company’s records.

“I do not know what will happen if we add 20 percent because according to the forensic report, Sara has 20 percent, then the amount paid will be P1.5 million,” she said. 

“It is absurd,” she added, with this last remark later stricken off the record.

Punay said GenCorp operates five Jollibee branches in Davao City: Bolton, Matina Crossing, G-Mall, Times Square and Abreeza.

She explained that GenCorp began consolidating the operations of the stores in 2021, acquiring branches previously operated by other corporations.

The Jollibee Bolton branch was previously operated by Jolli A Foods Corp., while the Matina Crossing branch was previously operated by Southern Bee Foods Corp.

Asked whether Duterte had shareholdings or other interests in those previous corporations or in the specific branches, Punay answered no.

She said GenCorp’s acquisition of the branches was intended to centralize their operations under one corporation.

The prosecution’s questions also covered a sixth Jollibee branch in Quezon City that was reportedly under GenCorp. Punay said she was only aware of five branches in Davao City.

Punay’s testimony also raised questions about the nature of Duterte’s investment, particularly after prosecution counsel Lorna Kapunan pointed out that the vice president’s original capital contribution to Davao Bounty was only P46,875.

Kapunan noted that Duterte received more than P2.1 million in return of capital from 2022 to 2025, despite the relatively small initial investment.

Punay said she could not verify the amount of Duterte’s original contribution to the Jollibee Times Square branch.

She also acknowledged that she did not know why GenCorp continued issuing the payments even though the investment was supposedly made through Davao Bounty, a separate company.

According to the witness, Davao Bounty failed to acquire the franchise for the Jollibee Times Square branch, but Duterte’s investment was transferred to companies that eventually acquired it.

Punay presented a breakdown of the payments Duterte allegedly received from GenCorp over four years.

Based on a transaction summary prepared by the company’s accountant, the amounts were:

• 2022: P337,500
• 2023: P555,750
• 2024: P612,419.14
• 2025: P636,700

The total reached P2,142,369.14.

Forensic expert Cabrera had attributed P55.7 million in alleged undeclared income from GenCorp to Duterte in 2023 alone.

The witness said the computation was inaccurate because Duterte supposedly received only P555,750 in return of capital that year.

She also said the payments were issued by GenCorp through checks.

However, Punay maintained that Duterte was not a stockholder, officer or director of GenCorp from 2022 to 2025.

According to the witness, Duterte’s name did not appear in the company’s General Information Sheets (GIS) during those years. She also said GenCorp did not declare dividends during the period.

“She has no stockholdings with GenCorp,” Punay said.

She also denied that Duterte was a beneficial owner of the company or had participated in its stockholders’ meetings, board meetings, management or decision-making.

However, the vice president had identified GenCorp, formerly known as Timesquare Bee Foods Corp. and Great Jolly Times Food, as among her business interests in her Statements of Assets, Liabilities and Net Worth (SALNs).

During cross-examination, Kapunan asked why Punay did not bring Duterte’s reported declaration of GenCorp ownership in her SALNs to the company’s attention.

Punay said she did not consider it part of her responsibilities to examine other people’s SALNs and adjust GenCorp’s 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 SALNs and adjusting our records just because somebody declared that he is a stockholder of our corporation,” she said.

Kapunan asked why Duterte had declared herself a GenCorp stockholder if she supposedly had no shares in the company.

Punay said she could not answer for the Vice President.

The prosecution said that the capital return that Duterte allegedly received from GenCorp Industries, which has 19 contracts with the Davao City local government, pointed to conflict of interest.

“The fact that she’s receiving financial compensation is already number one, is a direct violation of the Constitution… it gives us a clearer picture na kung ano po yung na-allege namin sa prosecution na mayroong conflict of interest by re-securing of these 19 contracts,” House prosecution spokesperson Rep. Zia Alonto Adiong said.