Baste Duterte: Davao City unaware of VP Sara's GenCorp interests

In a surprising turn of events, Davao City Mayor Sebastian “Baste” Duterte has publicly asserted that his municipal government had no knowledge of Vice President Sara Duterte’s declared interest in GenCorp Industries Inc., a company that recently secured nineteen contracts with the city. The mayor’s statement, posted on his Facebook page on September 21, comes just a day before he is slated to testify as a witness in his sister’s impeachment trial, a hearing that has already drawn intense scrutiny over the Duterte family’s business holdings and the broader question of political accountability in the Philippines.

Mayor Baste Duterte’s denial of knowledge

Mayor Baste Duterte emphasized that neither he nor any other city official or employee was aware that Vice President Sara Z. Duterte held an interest in GenCorp Industries. He pointed out that the vice president’s name, or even the Duterte surname, does not appear in any of the official corporate documents submitted for the city’s transactions with GenCorp, including the Articles of Incorporation. “I, and all other officials and employees of the City Government of Davao, never had any knowledge of Vice President Sara Z. Duterte holding an interest in GenCorp Industries Inc.,” he wrote.

The mayor’s insistence on a lack of direct connection is meant to underscore the procedural integrity of the procurement process. He noted that each GenCorp transaction underwent evaluation and that the company consistently submitted the lowest calculated responsive bid, a key criterion in government procurement. By highlighting the absence of the Duterte name in corporate filings, Baste seeks to separate the city’s procurement decisions from any perception of familial favoritism.

The scope of GenCorp’s contracts with Davao City

According to the mayor, the nineteen contracts awarded to GenCorp total more than ₱33.2 million. Of these, thirteen have already been completed, while six remain ongoing. The contracts span both competitive public bidding and small‑value procurement: four were secured through open competition, whereas fifteen were processed under the small‑value procurement mechanism, which typically involves a simplified bidding process for lower‑cost projects.

All transactions, the mayor affirmed, were processed, reported, and published through the Philippine Government Electronic Procurement System (PhilGEPS), the online platform that aims to ensure transparency in public procurement. By emphasizing the use of PhilGEPS, Baste underscores that the city adhered to the standard government procurement protocols, thereby reinforcing his claim that the dealings were “above board.”

Legal backdrop: impeachment and constitutional provisions

The controversy surrounding GenCorp is part of a larger impeachment proceeding that began with the 27th day of Vice President Sara Duterte’s trial. The prosecution has cited Article VII, Section 13 of the 1987 Constitution, which bars the president, vice president, cabinet members, and their deputies from holding another office, employment, or engaging in any business while in office. This provision is intended to prevent conflicts of interest that could compromise public service.

During the hearing, Securities and Exchange Commission (SEC) Director Gerardo Fernando del Rosario testified that Vice President Duterte remained a shareholder and board member of Metro City Chow Foods Corporation from 2022 to 2025, holding a 20 percent stake. While the Metro City Chow Foods case is distinct from the GenCorp matter, it illustrates the broader scrutiny of the vice president’s business holdings and whether she has fully divested as required by law.

SEC testimony on GenCorp’s corporate records

When questioned about GenCorp, Director del Rosario reported that Vice President Duterte’s name does not appear as an incorporator, director, or stockholder in the company’s corporate records. Instead, the records list JTC Group of Companies Philippines Inc. as the largest subscriber. Del Rosario suggested that an indirect interest could exist if Duterte controlled JTC, but he emphasized that no direct link was documented.

This nuance is crucial because the impeachment prosecution seeks to determine whether an indirect interest still violates constitutional prohibitions. The SEC itself has not rendered a formal determination on whether the vice president’s involvement with GenCorp constitutes a breach, leaving the ultimate decision to the Senate’s impeachment committee.

Implications for Davao City’s procurement practices

The mayor’s defense rests heavily on the transparency of the procurement process. By noting that GenCorp’s bids were the lowest responsive offers and that all contracts were posted on PhilGEPS, Baste attempts to demonstrate that the city’s procurement decisions were based on merit rather than personal connections. However, critics may argue that the sheer volume of contracts awarded to a single firm—nineteen in total—raises questions about market competition and the effectiveness of the small‑value procurement mechanism.

Small‑value procurement, while designed to streamline low‑cost purchases, can sometimes be vulnerable to favoritism if not monitored closely. The fact that fifteen of the nineteen contracts fell under this category may prompt the Commission on Elections, the Office of the Ombudsman, or civil society watchdogs to examine whether the process was sufficiently competitive and whether any procedural safeguards were bypassed.

Political stakes for the Duterte family

Beyond the procedural aspects, the case carries significant political weight. The Duterte family has long been a dominant force in Davao politics, and any perception of impropriety could affect public trust. Mayor Baste’s statement that “the people, especially the people of the City of Davao, have the right to know” reflects an effort to reassure constituents that the city’s governance remains transparent despite the family’s high‑profile status.

At the same time, the impeachment trial’s focus on the vice president’s wealth, SALN disclosures, and alleged continued business interests underscores a broader demand for accountability from the highest echelons of government. The outcome of Baste’s testimony may influence how the Senate interprets the constitutional ban on holding business interests, potentially setting a precedent for future officeholders.

Looking ahead: what the Senate may decide

As the impeachment trial proceeds, the Senate will weigh the evidence presented by both the prosecution and the defense. The key questions include whether Vice President Sara Duterte’s indirect interest—if any—through JTC Group violates the constitutional prohibition, and whether Davao City’s procurement of GenCorp services adhered to the standards of fairness and competition mandated by law.

Should the Senate find that the vice president’s holdings constitute a breach, it could lead to further legislative or judicial action to tighten conflict‑of‑interest rules for public officials. Conversely, a finding that the procurement process was legitimate and that no direct link exists between Sara Duterte and GenCorp would reinforce the current mechanisms of public procurement and the SEC’s role in monitoring corporate disclosures.

For ordinary Filipinos—from sari‑sari store owners in barangays to overseas Filipino workers watching from afar—the resolution of this case matters because it speaks to the broader promise of a government that serves the people rather than personal interests. As the trial unfolds, the nation will be watching closely, hoping that transparency, fairness, and the “absolute truth,” as Mayor Baste put it, will prevail.

This article was produced with AI-assisted research and editorial support. Reporting is based on the source material cited below. Sources: Philstar.com; Global1.News (22 September 2026).

By Bella Reyes, Staff Writer