Impeach Trial Day 38: Prosecution’s final witness to face VP defense

MANILA — Alex Cabrera, financial forensic analyst and Chairman Emeritus of PricewaterhouseCoopers Philippines, is set to face cross-examination after revealing Vice President Sara Duterte’s undeclared wealth accumulated to P817.87 million from 2022 to 2025.

Cabrera earlier testified a financial forensic investigation revealed discrepancies between Duterte’s declarations in her Statements of Assets, Liabilities, and Net Worth (SALN) and records from the Securities and Exchange Commission (SEC), the Bureau of Internal Revenue (BIR), and banks where the vice president and her husband hold account.

The report shows that the bulk of Duterte’s undeclared cash stems from the bank accounts of her husband, Manases Carpio after the forensic investigation showed the following year-end balances that were not seen in the Vice President’s SALNs:

• 2022: P41.55 million

• 2023: P49.20 million

• 2024: P13.43 million

• 2025: P28.41 million

Meanwhile, Duterte’s accounts allegedly held the following undeclared amounts:

• 2022: P8.72 million

• 2023: P11.93 million

• 2024: P8.53 million

• 2025: P12.18 million

Duterte and Carpio’s joint accounts allegedly had the following amounts:

• 2022: P8.79 million

• 2023: P9.86 million

• 2024: P1.02 million

• 2025: P1.81 million

The financial forensic expert pegged the couple’s undeclared personal assets and real estate properties at P143 million in 4 years, while 4 corporations linked to the Vice President allegedly held millions in undeclared income.

Cabrera said Duterte and her husband had also engaged in several “questionable banking behaviors,” including the withdrawal of P41 million from 2 banks in Davao City on August 6, 2024.

The financial forensic report also showed that one of Carpio’s corporations received millions of remittances from the following countries:

• China: P193.95 million

• Ukraine: P7.64 million

• Russia: P6.40 million

• Kazakhstan: P3.62 million

• Lithuania: P3.11 million

• South Africa: P3.04 million

• Tajikistan: P1.90 million

• Hong Kong: P1.69 million

• United Arab Emirates: P1.24 million

Impeachment lead prosecutor Gerville Luistro earlier said she was overwhelmed by the testimony of Cabrera, who flagged P817.87 million in allegedly undeclared assets and income involving the Vice President and her husband.

Luistro said Cabrera’s findings back Article II of the impeachment accusing Duterte of non-disclosures of unexplained wealth in her SALNs, non-divestment of other business interests and exercise of profession, business and conflict of interest.

“Kahit ako na overwhelm sa informations na shinare niya from his own forensic and financial report,” she told DZMM.

“Nabanggit lahat ‘yan. The least that we can do – ibangga mo ‘yung allegations dun sa findings niya during the direct and we are positive that he is satisfying or he is establishing the requirements of the allegations of Article II of the impeachment.”

Among Cabrera’s findings is that Duterte allegedly participated in “check-kiting” by placing her wealth in manager’s checks so that the bank balances would be depleted before December 31, the cutoff date for determining cash in bank for SALNs.

“Tinikling or check-kiting. Labas-pasok ang pera through the issuance of manager’s checks. Iniiwasan ‘yung ending ng December 31, so that there is no obligation to declare cash in bank in the SALN,” Luistro said.

Luistro pointed out that credit card statements revealed alleged single transactions involving hundreds of thousands of pesos in restaurant and shopping expenses, which starkly contrast with the simple lifestyles previously depicted by the Duterte family.

“Anong nakikita natin? Si former President natutulog sa loob ng kulambo. Si respondent Vice President tumutusok ng fish ball, di ba? And then you will be confronted with purchases through credit card. Isang kain P205,000. Isang punta sa Nike Davao P300,000. Isang punta sa Nike Kuala Lumpur, P250,000, I believe.”

“This is entirely different from the picture that they depicted for us to believe.”

Luistro said the prosecution is unfazed that the defense will have at least 3 weeks to prepare its own presentation. 

“Kahit anong haba ang preparation ng defense, we are confident about the complete and strong evidence  that the prosecution has presented already and will continue to present on Monday and Tuesday,” she said.

She added there is also a possibility that senator-judges may summon other witnesses to the trial including security officers of Duterte.

For Mon Abrea, a tax policy expert from the Asian Consulting Group, it comes as no surprise that politicians Duterte own assets and businesses—such as restaurants—in their home cities, like Davao.

Cabrera earlier told the impeachment trial that Duterte holds a 20 percent stake in Gencorp Industries, which owns five Jollibee branches in Davao City. He noted that a single Jollibee franchise costs between P35 million and P50 million.

Abrea said it is no secret that local officials and political dynasties control and own businesses in their respective localities.

He added that figures like Martin Romualdez and Zaldy Co should also be investigated due to their lavish lifestyles, which do not align with their earnings as government officials. “If they own businesses, these should be declared, and the proper taxes paid,” he told DZMM in a separate interview.

Abrea also believes it is time to amend the Bank Secrecy Law, noting that the Philippines is reportedly the only country where the bank deposits of an individual accused of tax evasion cannot be opened for inspection.

He mentioned having discussed with Ombudsman Boying Remulla the need to utilize—or “weaponize”—the Tax Code to go after “nepo babies” or relatives whom politicians use to conceal their wealth. — With a report by Kat Domingo, ABS-CBN News