DESPITE the constitutional prohibition against directly or indirectly participating in any business while in office, Vice President Sara Duterte remained an incorporator, board director, and 20-percent stakeholder in Davao-based Metro City Chowfoods Corp. well into her term, an official of the Securities and Exchange Commission (SEC) testified on Monday.
During the 27th day of the impeachment trial, SEC Registration and Monitoring Department Director Gerardo del Rosario confirmed corporate records showing “Sara Z. Duterte” as both a stockholder and member of the board of directors of Metro City Chow Foods Corp. throughout the period covering her vice-presidential tenure.
Del Rosario told the Senate court that Duterte was an incorporator of Metro City Chowfoods Corp. in 2016, with a P50,000 subscription and a 20-percent stake through 2025.
He also confirmed that Duterte was a member of its board of directors and simultaneously served on its compensation committee from 2018 to 2021.
Most notably, Duterte held the two positions from 2022 to 2025 during her term as vice president, the records showed.
During direct examination, private prosecutor Erwin Matib asked del Rosario whether a vice president could continue serving as a company director after assuming office.
“It appears here that Vice President Sara was a member of the board of directors from 2022 to 2025. When was respondent Sara Duterte elected vice president?” he said.
Del Rosario pointed out that Duterte was elected president on June 30, 2022.
Matib also zeroed in on the fact that a seat on a corporation’s board is not automatic: directors are elected by shareholders.
“Who chooses the members of the board of directors?” Matib asked.
“The directors are elected by the shareholders,” Del Rosario replied.
Matib then pointed out that Duterte continued to appear as a director in the corporation’s filings year after year.
“So, there’s an election? It looks like there’s an election every year, and VP Sara always wins the position of director in this company,” Matib said.
He asked del Rosario about the constitutional restrictions applicable to a sitting vice president who remains involved in a private corporation.
Defense counsel Justin Gular objected to the question, arguing that the SEC witness was “incompetent” to address such an inquiry.
But Senate Presiding Officer Francis Escudero overruled the objection and said he was also “interested” to know whether the regulatory agency had flagged Duterte’s positions in the firm.
Del Rosario replied, “The Constitution provides that the president, vice president, Cabinet members and their deputies are not allowed to hold any other office, engage in another profession, or have business interests to prevent conflicts of interest.” Matib read the full provision cited by the witness: Article VII, Section 13 of the 1987 Constitution, which states that “The president, vice president, the members of the Cabinet, and their deputies and assistants shall not, unless otherwise provided in this Constitution, hold any other office or employment during their tenure.” “They shall not during said tenure directly or indirectly, practice any other profession, participate in any business or be financially interested in any contract with, or in any franchise, or special privilege granted by the government or any subdivision, agency, or instrumentality thereof, including government-owned or controlled corporations or their subsidiaries. They shall strictly avoid conflict of interest in the conduct of their office,” the said provision further states.
“That is my understanding — that they cannot participate in a business,” del Rosario said.
“Participate in business, yes it’s there. But to have a business interest, do you see it?” Escudero asked.
“Perhaps my Tagalog was just incorrect,” the SEC official said.
The Supreme Court has described the restrictions under Article VII, Section 13 as “sweeping, all-embracing prohibitions,” saying the Constitution deliberately imposed stricter limitations on the president and other top executive officials because of the powers entrusted to them.
Republic Act 6713, or the Code of Conduct and Ethical Standards for Public Officials and Employees, separately requires public officials to avoid conflicts of interest. When a conflict arises, the law requires an official to resign from a position in a private business enterprise within 30 days from assumption of office and/or divest shareholdings or interests within 60 days.
The SEC records form part of the prosecution’s presentation under Article II of the Articles of Impeachment, which covers allegations of unexplained wealth and Duterte’s business interests.
At the start of del Rosario’s testimony, Matib said the prosecution intended to use SEC records to establish Duterte and her husband, lawyer Manases Carpio’s interests and positions in several companies, including those maintained during her tenure as vice president.
Meanwhile, del Rosario confirmed that 13 of 18 companies linked by the prosecution to Duterte and her husband have no dividends declared.
The absence of declared dividends does not by itself mean a corporation had no sales, profits, assets or business activity. It shows only that no dividend income attributable to Duterte and Carpio was declared for the periods covered by the records cited by prosecutors.
The prosecution identified the firms as City Hall King Chow Foods Corp.; Metro City Chow Foods Corp.; Gencorp Industries Inc.; Kale 88 Foods Corp.; Mati City Ice Plant and Cold Storage Inc.; Geometry Security and Investigation Agency Inc.; Great Jolly Times Food Corp.; Times Square B Foods Corp.; Davao New Royal Taipan Foods Corp.; Davao Emerging Taipans Corp.; Three Kids Trucking Services Inc.; CYK&T Davao Corp.; SGT Fortune Horse Corp.; Davao Bounty Times Food Corp.; Madayaw Fisheries Inc.; Amianan Shores Inc.; CableTow 88 Shipping and Marine Services Inc.; and Carpio Lawyers.
Slides shown during the hearing indicated that Davao Emerging Taipans Corp. had no dividends declared from 2004 to 2020, Three Kids Trucking Services Inc. in 2012, CYK&T Davao Corp. in 2010 and SGT Fortune Horse Corp. from 2010 to 2011.
Similar no-dividend entries covering different periods were shown for other companies on the prosecution’s list.
Matib said prosecutors were examining the records to determine whether Duterte received income from the businesses she declared and whether such income could help explain increases in her reported net worth.
SALNs previously presented before the impeachment court showed Duterte’s declared net worth rising from P7.25 million in 2007 to P98.66 million in 2025.
Escudero earlier said that SALNs predating Duterte’s vice presidential term serve as a historical baseline and should not be used to expand the allegations in the Articles of Impeachment.
Ombudsman Central Records Division officer-in-charge Karen Batu earlier testified on Duterte’s SALNs and the business interests and financial connections listed in them.
On cross-examination, Batu said her office serves as a repository of SALNs and does not validate the truth of every declaration contained in them.
Prosecutors are now using the SEC records to compare the business interests declared in Duterte’s SALNs with corporate filings on ownership, stockholdings and possible dividend income.
The prosecution’s position is also consistent with earlier testimony from retired Sandiganbayan presiding justice Amparo Cabotaje-Tang, who cited Article VII, Section 13 when discussing the constitutional restrictions applicable to a sitting president or vice president.
