DAVAO City Mayor Sebastian “Baste” Duterte said the city government entered into 19 contracts worth a combined P33.26 million with Gencorp Industries Inc. since 2022, disputing reports that placed the transactions at about P14.32 million.
Duterte issued the statement Sept. 21 as the Senate impeachment court prepared to hear his testimony and examine documents involving Gencorp, a company Vice President Sara Duterte has declared as a business interest in her Statements of Assets, Liabilities and Net Worth.
“Contrary to unconfirmed reports alleging that the City of Davao, through me as its City Mayor, has transactions worth around ‘Php 14.32 Million’ with GENCORP INDUSTRIES INC., let it be put on record that upon latest review, it has a gross total of Php 33,263,161.00 worth of transactions encompassing 19 contracts,” Duterte said.
He said the contracts began in 2022, with 13 completed and six still ongoing.
Four contracts went through competitive public bidding, while 15 were awarded through small-value procurement, according to Duterte.
He said Gencorp underwent the required evaluation for each transaction and submitted the lowest calculated responsive bid or offer.
Duterte also said the city processed and published its transactions with Gencorp through the Philippine Government Electronic Procurement System, or PhilGEPS.
“In compliance with government procurement laws and administrative issuances, all 19 transactions have been duly processed, reported, and published on the Philippine Government Electronic Procurement System (PhilGEPS) portal,” he said.
He invited those seeking to verify the transactions to review the city's procurement records through PhilGEPS or coordinate with the appropriate city government office for authorized access.
Gencorp in impeachment proceedings
Duterte's statement comes as House prosecutors present evidence under Article II of the impeachment complaint against Vice President Duterte. The article includes allegations involving unexplained wealth, including questions about her SALNs and declared business interests.
The Senate impeachment court initially scheduled Mayor Duterte to testify Sept. 23. The court later recalled the subpoena after scheduling oral arguments that day on the number of votes required to convict in the impeachment proceedings.
The court reset Duterte's appearance to Sept. 28-30, along with two other prosecution witnesses.
Prosecutors said they want Duterte to testify about transactions between the Davao City government and Gencorp during his tenure as mayor.
The subpoena directs Duterte to produce official records and contracts involving Gencorp from 2020 to the present. PhilGEPS Division Chief Rendell Sopeña was also subpoenaed to testify and produce procurement records involving Gencorp and other companies in which the Vice President declared an interest.
House prosecution spokesperson Zia Alonto Adiong said Duterte was being called as a witness, not as a respondent.
“He is being called because he may have relevant personal and official knowledge concerning matters that form part of the prosecution’s Article II presentation,” Adiong said.
The prosecution has also indicated that it may ask the impeachment court to declare Duterte a hostile witness, which could allow prosecutors to use more leading questions, subject to the court's ruling.
Earlier P14.32M figure
The P14.32 million figure disputed by Duterte came from reports on government transactions involving Gencorp from 2022 to 2025.
Reports cited about P14.32 million in transactions between Gencorp and the Davao City government, plus P696,829 involving the Philippine Health Insurance Corp. regional office in Davao. The combined reported government transactions totaled about P15.02 million.
Duterte's latest statement gives a different accounting of the city's dealings with Gencorp, placing the total at P33,263,161 across 19 contracts.
The P33.26 million figure is Duterte's latest accounting, while prosecutors and published reports previously cited P14.32 million.
Unaware
Duterte also addressed whether he or other city officials knew that his sister had declared an interest in Gencorp.
He said they did not.
“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 said.
Duterte said corporate documents Gencorp submitted to the city did not identify Sara Duterte or the Duterte surname.
“Furthermore, neither the name Sara Zimmerman Duterte nor the surname ‘Duterte’ appears in any of the official documents, such as, among others, the Articles of Incorporation, submitted by GENCORP INDUSTRIES INC. across the 19 contracts and transactions in question,” he said.
The issue is being examined alongside the Vice President's declared business interests. House prosecutors have sought to establish whether companies listed in her SALNs had transactions with government agencies.
Securities and Exchange Commission official Gerardo del Rosario has also been called to testify about corporate records involving the Vice President's alleged shareholdings and business interests. His testimony forms part of the prosecution's broader presentation on Duterte's declared assets and interests.
Compliant
Duterte maintained that the city's transactions with Gencorp complied with procurement requirements.
“I maintain that all transactions of the City of Davao with GENCORP INDUSTRIES INC. are above board; any claim otherwise shall be duly supported with verified evidence and reliable documents,” he said.
He urged the public to verify information about the contracts through official procurement records.
“Any interested party seeking to verify the city’s transactions with GENCORP INDUSTRIES INC., or any other entity, is invited to review the official PhilGEPS website or coordinate with their office for authorized record access,” he said.
Duterte said he issued the statement ahead of the impeachment proceedings to clarify the city's dealings with the company and ensure residents had accurate information.
He also criticized what he described as misleading narratives, saying political interests should not shape how government contracts are presented.
“I remain steadfast in my commitment to transparency, fairness and the absolute truth,” he said. DEF
