PASAY CITY, Philippines — An official from the Philippine Government Electronic Procurement System (PhilGEPS) confirmed during the Senate Impeachment Court proceedings on Monday, September 28, that 11 contracts awarded by the Davao City local government to a firm tied to Vice President Sara Duterte were processed without competitive public bidding.
Testifying on Day 30 of the trial, Rendell Sopeña, chief of PhilGEPS Electronic Government Procurement Operations Division, revealed the details during questioning by Senator Risa Hontiveros regarding transactions involving GenCorp. Industries Inc.—a firm declared by the Vice President as a business interest in her Statement of Assets, Liabilities and Net Worth (SALN).
“There were contracts that the Davao City LGU awarded to GenCorp., how many did not undergo public bidding?” Hontiveros asked.
“Eleven (11) did not undergo public bidding,” Sopeña replied.
Sopeña explained that out of 15 total transactions with the local government, only four underwent standard public bidding, while the remaining 11 were executed via negotiated small-value procurement.
”Roughly that’s around ₱8-million or ₱7- million, I think,” Sopeña estimated regarding the aggregate value of the unbid contracts.
When asked whether it was permissible for a company connected to the Vice President to secure contracts with a local government unit led by her brother, Mayor Sebastian “Baste” Duterte, Sopeña deferred on legal conclusions.
“Apologies your honor, but according to legality, I have no personal knowledge. I’m more inclined to PhilGEPS system,” he said.
Sopeña had previously informed the tribunal that GenCorp. bagged roughly 49 state contracts worth a combined ₱35.9 million across various government offices—including Davao City, PhilHealth Region XI, and OWWA Region XI—during Duterte’s tenure as Vice President.
Addressing inquiries from Senator Joel Villanueva on potential contract splitting for identical items like catering, Sopeña noted the procurements involved similar goods but reflected different publication and award dates.
The disclosures prompted queries from senator-judges, including Senator Raffy Tulfo, regarding potential ethical violations involving the Duterte siblings.
“Is GenCorp allowed to participate in the public bidding in Davao knowing that the Vice President is the owner? Or one of the owners of GenCorp, and then Davao is her bailiwick. Isn’t there conflict of interest?” Tulfo asked, further questioning why the system did not flag the transactions.
“Didn’t GenCorp flag down the transaction, considering there could be conflict of interest?” he pointed out.
Representative Gerville Luistro of Batangas, lead prosecutor for the House panel, argued that the transactions violate constitutional standards if the Vice President maintained financial ties to the company.
”GenCorp should not be participating in the bidding of City of Davao, which is headed by no less than the brother of the respondent Vice President,” Luistro stated.
“It is my humble submission that this is the conflict of interest contemplated under Article VII, Section 13 of the Constitution,” she said.