Baste defends Davao City’s P33-M Gencorp transactions

DAVAO CITY – Davao City Mayor Sebastian Duterte clarified that the city government’s transactions with Gencorp Industries Inc. totaled P33.263161 million under 19 contracts, higher than the previously reported P14.32 million.

In a statement on Monday, Sept. 21, Duterte said the city’s procurement dealings with the company began in 2022. Of the 19 contracts, 13 have been completed, while six are still ongoing.

Duterte said four contracts were awarded through competitive public bidding, while the remaining 15 were processed through small-value procurement in line with government procurement rules.

He said Gencorp submitted the lowest calculated responsive bid or offer in all 19 transactions. The contracts were also reported and published through the Philippine Government Electronic Procurement System (PhilGEPS).

Duterte also denied any knowledge of Vice President Sara Duterte’s connection to the company.

“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.

He added that neither “Sara Zimmerman Duterte” nor the surname “Duterte” appeared in the corporate documents submitted by the company, including its Articles of Incorporation.

The mayor defended the city government’s procurement process and said the statement was issued ahead of any formal proceedings to provide transparency and inform the public.

Gencorp became the subject of scrutiny during Senate impeachment hearings after the Vice President identified it as one of her business interests.

SEC official Gerardo del Rosario later presented the company’s registration records and annual disclosures to verify the Vice President’s reported connection to the firm.

Prosecutors are also gathering government and corporate records related to the company.

Duterte is scheduled to testify on the city’s transactions with Gencorp from Sept. 28 to 30 after his original Sept. 23 summons was rescheduled.

The mayor maintained that the city’s contracts with Gencorp followed government procurement rules and challenged critics to present evidence of any wrongdoing. (By Ivy Tejano)

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top