SEC: Duterte’s compensation panel role possible constitutional violation

MANILA, Philippines — Vice President Sara Duterte’s membership in the compensation committee of corporations could constitute a possible violation of Article VII, Section 13 of the Constitution, a Securities and Exchange Commission (SEC) official testified Monday during the 27th day of her impeachment trial.

SEC Company Registration and Monitoring Department Director Gerardo del Rosario was testifying as a prosecution witness before the Senate Impeachment Court.

Senate President Sherwin Gatchalian asked Del Rosario whether, based on his experience, Duterte’s membership in the compensation committee of Metro City Chow Food Corporation from 2024 to 2025 could constitute a possible violation of the constitutional provision. Del Rosario answered in the affirmative.

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“What was stated was that you should not have another office. You should not hold office, employment, or engage in another profession while you are serving your term of office, even to participate,” Del Rosario said.

READ: SEC records: Sara Duterte stayed company director after becoming VP

Article VII, Section 13 of the 1987 Constitution prohibits the president, vice president, members of the Cabinet, and their deputies or assistants from holding any other office or employment during their tenure.

“They shall not, during said tenure, directly or indirectly, practice any other profession, participate in any business, or be financially interested in any contract with, or in any franchise, or special privilege granted by the Government or any subdivision, agency, or instrumentality thereof, including government-owned or controlled corporations or their subsidiaries. They shall strictly avoid conflict of interest in the conduct of their office,” it states.

Citing Duterte’s SEC records showing that she was listed as a member of the compensation committee of City Hall King Chow Foods Corporation from 2017 to 2019, Gatchalian asked Del Rosario what such a designation entails.

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Del Rosario explained that compensation committee members are usually tasked with reviewing and evaluating the company’s compensation package.

Asked whether such a position constituted participation in the management of the company, Del Rosario said, “If we look at the definition of this type of position, an executive committee, it could be said that she has participation. However, we rely on what is reported by the corporate secretary.”

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Gatchalian then asked whether Duterte held the same position during her tenure as vice president.

Del Rosario cited Duterte’s membership in the compensation committee of Metro City Chow Food Corp., where she was listed as a member of the board of directors and the compensation committee from 2024 to 2025.

READ: Duterte defense cries ‘mind conditioning’ over SEC shareholdings summary

Duterte assumed the vice presidency in June 2022.

Meanwhile, Del Rosario clarified that the SEC had not investigated Duterte’s corporate positions as a possible constitutional violation.

Asked again whether the matter could fall within the SEC’s mandate, Del Rosario said, “If participation means joining, means having a violation, perhaps the Senate should be the one to determine whether there was indeed a violation.”

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Del Rosario is among the prosecution’s witnesses in its presentation of impeachment Article II, which alleges that Duterte amassed unexplained wealth, failed to fully and truthfully disclose her and her husband’s assets, liabilities and net worth in their Statements of Assets, Liabilities and Net Worth, and failed to divest her business interests from 2022 to 2025. /mcm