Conflict of Interest Flagged Over VP-Linked Firm’s Davao Contracts

Philippines

Conflict of Interest Flagged Over VP-Linked Firm’s Davao Contracts

A potential conflict of interest has been raised in the Senate impeachment trial of Vice President Sara Duterte after a government procurement official testified that a company she identified as a business interest received 15 contracts from the Davao City government, including 11 that did not undergo competitive public bidding.

Rendell Sopeña, chief of the Philippine Government Electronic Procurement System’s Electronic Government Procurement Operations Division, told the Senate impeachment court that GenCorp Industries secured 15 Davao City contracts worth about P34.2 million between July 2022 and June 2026. Four contracts underwent public bidding, while 11 worth roughly P7 million to P8 million were awarded through negotiated small-value procurement, an alternative procurement method allowed under government rules.

The transactions have drawn scrutiny because Duterte listed GenCorp among her business interests in her 2024 and 2025 Statements of Assets, Liabilities and Net Worth. At the same time, Securities and Exchange Commission records presented during the trial did not identify her as an incorporator or stockholder of the company, creating a discrepancy that remains to be reconciled.

The issue has also raised questions because Davao City Mayor Sebastian Duterte, the Vice President’s brother, headed the local government during the period covered by the contracts. House prosecutors argued that the arrangement could fall under the constitutional prohibition against the Vice President participating in business or holding financial interests in government contracts.

Sopeña, however, said PhilGEPS records did not show that Duterte was an officer, shareholder or beneficial owner of GenCorp when the contracts were awarded. He also said PhilGEPS functions primarily as a procurement information repository and does not independently verify the ownership information submitted by bidders.

Senators also questioned whether the 11 contracts may have been divided to avoid competitive bidding requirements. Sopeña said the contracts involved similar food and catering services but had different publication and award dates.

The testimony forms part of the prosecution’s presentation under the impeachment case’s allegations involving Duterte’s business interests, unexplained wealth and alleged failure to divest. Mayor Sebastian Duterte has been subpoenaed to testify, potentially bringing further details about the Davao City transactions before the impeachment court.

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