[Rappler Investigates] Mystery in Sara’s SALNs

It's getting more interesting, isn’t it, especially from the conflict-of-interest lens?

AT A GLANCE

• Government officials facing legal troubles often seek hospital stays for health issues, raising concerns about the selective availability of medical considerations for the wealthy.
• Research indicates a pattern of top officials using health claims to delay legal consequences, while many poor Filipinos remain in overcrowded jails without similar options.
• The article also highlights ongoing investigations into exploitative online forums and the impact of political dynasties on corruption in the Philippines, alongside updates on the impeachment trial of Vice President Sara Duterte.

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How do you explain it? A company was declared and sworn to in the Statements of Assets, Liabilities, and Net Worth (SALNs) of Vice President Sara Duterte. But it’s nowhere to be found in documents submitted to the Securities and Exchange Commission (SEC), as multimedia reporter Patrick Cruz first discovered ahead of proceedings at the impeachment trial. (READ: Sara Duterte’s company won millions’ worth of contracts from Davao City Hall)

Next obvious question is: does the VP have a business interest in Gencorp Industries Inc., the company that figures in these contracts? Further, did she violate the Constitution, which explicitly prohibits the president, vice president, members of the Cabinet, and their deputies or assistants from having any “conflict of interest in the conduct of their office.”

Article VII of the 1987 charter bans the Vice President from participation in “any business” or being “financially interested in any contract with, or in any franchise, or special privilege granted by the government…” 

It’s as clear as day that, as Patrick found out, Gencorp obtained over P15 million in contracts from Davao City Hall when the VP’s brother, Baste Duterte, was sitting as mayor, and Sara was already elected vice president.

The SEC’s Gerardo del Rosario, company registration and monitoring director, ventured possible explanations for the discrepancy between Sara’s SALN and SEC documents pertaining to Gencorp. Read about them here.

It would be natural to surmise or speculate on possible dummy arrangements or even private trust agreements. Documents also reveal that the JTC Group of Companies is a major shareholder (almost 55%) in Gencorp. And JTC’s president is a Duterte associate, Jaime Tan Cruz, whose initials appear to correspond with the company’s name. 

More digging exposed past links between Cruz and former president Rodrigo Duterte (among others, he was appointed special envoy to China, in charge of trade and investments). Tan was found to also be an incorporator of at least seven companies, some of them also appearing in the Vice President’s SALNs, identifying herself as “incorporator/stockholder” in some of these.

Getting more interesting, isn’t it, especially from the conflict-of-interest lens? The defense is expected to find ways of disentangling the Vice President from these when their turn comes. They will most likely point to the SEC documents and the absence of Sara Duterte’s names in them as proof of her non-association with these business entities.

A statement from Baste Duterte, however, disclosed that Gencorp got 19 contracts from Davao City Hall worth P33.6 million (even more than what we had initially seen). He never knew that his sister had any business interests in Gencorp, he said — but whatever happened to due diligence?

More clarity should come in the next few days when Baste appears before the impeachment trial court. If you’d like to catch up on stories related to the VP’s business interests, be sure to read the following:

• Jollibee enters the menu as impeach court scrutinizes Sara Duterte businesses
• Sara Duterte wealth case: The argument for examining Mans Carpio’s finances
• Sara Duterte trial: Can a VP have business interests?
• Why Sara Duterte skips questions related to her impeachment

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