MANILA, Philippines — GenCorp Industries Inc., a company linked to Vice President Sara Duterte, allegedly failed to pay around P250 million in taxes on undeclared cash inflows, financial forensic analyst Alexander Cabrera told the Senate impeachment court on Monday.
Responding to Senator-Judge Sherwin Gatchalian during the continuation of Duterte’s impeachment trial, Cabrera said GenCorp recorded cash inflows exceeding its reported sales, raising questions about whether the company properly declared the funds.
“So you’re also saying that they did not pay taxes?” Gatchalian asked.
“That’s correct. P250 million,” Cabrera replied.
Gatchalian said that GenCorp allegedly received around P1 billion in undeclared inflows from 2022 to 2025. He asked whether this meant the company received money that it did not report as sales.
Cabrera agreed.
Gatchalian then asked whether the inflows could have come from loans or advances rather than sales.
Cabrera said this was unlikely, explaining that loans or advances should have been recorded as payables.
Cabrera previously testified that GenCorp’s revenue grew from approximately P28 million in 2021 to more than P520 million in 2025, despite reported paid-in capital of only P1.25 million.
He said the company’s financial statements did not clearly explain the sources of funds supporting its growth and acquisitions. He also cited discrepancies between the company’s reported revenues, cash movements and financial position as reasons for further scrutiny.
Cabrera explained that funds entering a business would ordinarily be expected to finance operations, acquire equipment or inventory, pay employees, or settle debts.
Money moving into and out of a company without an apparent contribution to its operations could raise concerns, he said.
Cabrera also described a “revolving door” pattern, in which money enters a company and leaves on the same day or shortly afterward, as a potential warning sign in financial investigations. However, he stressed that such transactions alone do not establish money laundering.
Gatchalian also questioned Cabrera’s findings on P111 million in alleged undeclared income attributed to Duterte and her husband, lawyer Manases “Mans” Carpio, including how the forensic team assessed possible sources of the funds.
Cabrera said the team considered whether the money could have come from donations but cited legal restrictions on public officials accepting gifts beyond nominal value in connection with their official duties.
“The law says you are not allowed to accept donations except those of nominal value. Accepting donations in the course of your work is prohibited,” Cabrera said.
He argued that Duterte’s position as vice president constituted a full-time public office, regardless of whether she was sleeping, on vacation or off duty.
“Even when she is sleeping, she is the vice president. Even on weekends, she is the vice president. Even on vacation, she is the vice president,” he said.