Senator Erwin Tulfo questioned the dramatic growth in sales of GenCorp Industries Inc. during a Senate impeachment trial hearing on Wednesday, November 11.
Senator-judges focused their scrutiny on corporate disclosures indicating that Vice President Sara Duterte received over ₱2.1 million in supposed returns of capital between 2022 and 2025.
Taking the stand as a defense witness, GenCorp corporate counsel Atty. Suzette Balucanag-Punay clarified the distinction between a “return of capital” and a “return on capital,” which typically refers to investment earnings.
Tulfo pressed the witness on why Duterte received these disbursements annually—totaling ₱2,142,369.14 across the four-year period—despite the company characterizing them as a return on her investment. Records presented showed Duterte received ₱337,500 in 2022, ₱555,750 in 2023, ₱612,419.14 in 2024, and ₱636,700 in 2025.
Balucanag-Punay stated she could not explain the annual breakdown because she is not part of the accounting department, noting she only requested the data extraction for the proceedings.
The witness previously testified that Duterte is not a registered GenCorp shareholder but holds a “loose investment” linked to the Jollibee Times Square branch, which was carried over through successive corporate acquisitions.
Inquiry Into Sales Growth and Conflict of Interest
Tulfo also highlighted a sharp jump in GenCorp’s financial figures, pointing out that annual sales surged from ₱28 million in 2021 to roughly ₱300 million in 2022—the year Duterte assumed the vice presidency. Total sales from 2022 to 2024 reportedly reached approximately ₱1 billion before climbing to ₱520 million by 2025.
The senator asked whether the sudden expansion during Duterte’s tenure presented potential conflict-of-interest issues.
”Bakit biglang lumobo na po from 2022 na VP na sya, hanggang, wala po bang conflict of interest doon, ma’am?” Tulfo asked.
Balucanag-Punay attributed the sales growth to GenCorp’s step-by-step acquisition of five Jollibee branches between 2021 and 2024, explaining that an expanded store network naturally generated higher revenues.
However, Tulfo countered that despite the massive sales volume, GenCorp’s reported net income remained modest at ₱2.7 million in 2023 and ₱3.3 million in 2024.
Balucanag-Punay reiterated that she could not speak on the company’s income figures as she is not involved in its day-to-day operations.