Vice President Sara Duterte remained a shareholder and director of a private corporation after assuming office in 2022, according to Securities and Exchange Commission records presented during her impeachment trial.
SEC Company Registration and Monitoring Department Director Gerardo Fernando Del Rosario testified that Duterte continued to be listed as a member of the board of directors of Metro City Chow Foods Corp. in the company’s General Information Sheets from 2022 through 2025.
The records also showed that Duterte held a 20-percent stake in the company. She was among its incorporators when it was established in 2016 and had served on its board since 2018.
The testimony came as the prosecution presented evidence under the impeachment article concerning allegations involving unexplained wealth, asset declarations and Duterte’s business interests.
Article VII, Section 13 of the 1987 Constitution states that the President, Vice President, Cabinet members and their deputies or assistants shall not, during their tenure, directly or indirectly participate in any business or practice another profession. The same provision also imposes restrictions involving government contracts and requires these officials to avoid conflicts of interest.
During the hearing, Del Rosario said the SEC records continued to identify Duterte as a director even after she became vice president on June 30, 2022. He also explained that a corporation’s board of directors exercises corporate powers and conducts its business.
House prosecutors have characterized the continued board membership as a constitutional violation. That characterization is a prosecution position in the impeachment case, rather than a final judicial finding.
The records also showed that Metro City Chow Foods had not declared dividends because it did not have unrestricted retained earnings. Del Rosario noted, however, that a shareholder who also serves as a director could potentially receive reasonable per diems, while an employee-shareholder could receive a salary, subject to applicable corporate rules.
The testimony also covered other companies connected to Duterte and her husband, lawyer Manases Carpio. According to the SEC witness, records involving 18 companies were examined, with some showing no declared dividends and others lacking annual financial statements in the records presented.
Another company declared by Duterte as a business interest, Gencorp Industries Inc., has also come under scrutiny because it received government contracts. SunStar reported that Davao City entered into 19 contracts with Gencorp totaling P33.26 million since 2022, while prosecution evidence separately placed the value of contracts awarded by Davao City Hall during Duterte’s vice-presidential tenure at P34.2169 million. The differing figures reflect different sets of transactions and accounting periods being presented in the proceedings.
Malacañang, responding to the issue, said government officials are required to comply with existing laws and constitutional provisions and stressed that no one is above the law. The Palace did not make a determination on whether Duterte violated the Constitution.
The evidence presented in the Senate impeachment court is expected to remain central to the debate over Duterte’s corporate interests while in office, with the proceedings continuing to examine the records, applicable constitutional restrictions and the competing interpretations of the evidence.
