Davao City Mayor Sebastian “Baste” Duterte said he was unaware that his sister, Vice President Sara Duterte, had declared a business interest in GenCorp Industries Inc. when the company received contracts from the city government.
Duterte made the statement while testifying as a hostile witness before the Senate impeachment court on Sept. 29. The prosecution is examining GenCorp contracts as part of its presentation concerning allegations involving the Vice President’s wealth, financial disclosures and business interests.
The Vice President listed GenCorp as a business interest in her 2024 and 2025 Statements of Assets, Liabilities and Net Worth. PhilGEPS records presented during the trial showed 15 Davao City contracts with GenCorp worth about P34.2 million from July 2022 to June 2026.
Duterte, however, said he only became aware of GenCorp in connection with the impeachment proceedings. He acknowledged that he had not personally examined the company’s corporate records and said he did not have direct knowledge of whether GenCorp met a procurement requirement requiring bidders to have been operating for at least five years.
The mayor said the city’s transactions with GenCorp had undergone procurement procedures and that the company was determined to have submitted the lowest calculated responsive bid or offer. He also maintained that there was no known irregularity that would have prompted him to personally examine the company’s records.
When asked whether he would have allowed GenCorp to receive city contracts if he had known that Sara Duterte had a business interest in the company, the mayor said he would not have allowed it. He also acknowledged that he was aware of the constitutional provision restricting the President and Vice President from having financial interests in government contracts.
The hearing also highlighted a discrepancy between records submitted by the mayor and those from PhilGEPS. Duterte previously said Davao City had 19 GenCorp transactions worth about P33.26 million, while PhilGEPS records presented in court showed 15 contracts totaling about P34.2 million. Prosecutors said the difference would need to be reconciled.
Duterte also confirmed that he is a business associate of Jaime T. Cruz, whose corporate connections were discussed during the hearing. He said, however, that he was unaware of Cruz’s connection to GenCorp.
The testimony is part of the prosecution’s evidence under Article II of the impeachment case, which concerns allegations involving unexplained wealth, financial disclosures and business interests. The mayor’s designation as a hostile witness allows prosecutors to use leading questions during his examination.
