Securities and Exchange Commission (SEC) Company Registration and Monitoring Department Director Gerardo Del Rosario official testified Monday that Vice President Sara Duterte remained a shareholder and member of the board of directors of a Davao-based corporation after she assumed office as vice president.
During the 27th day of Duterte’s impeachment trial, Del Rosario confirmed corporate records showing Duterte continued to serve as a director of Metro City Chow Foods Corporation from 2022 to 2025, while also retaining a 20% ownership stake.
Records presented by the prosecution showed that Duterte was an incorporator of the company when it was established in 2016. She subscribed to P50,000 worth of shares, of which P12,500 had been paid, according to the documents presented in court.
Del Rosario also confirmed that Duterte remained listed as a member of the company’s board based on its General Information Sheets. The records further indicated that she was the company’s second-largest shareholder, with 500 subscribed shares.
The prosecution raised the issue in relation to Article VII, Section 13 of the 1987 Constitution, which states that the president, vice president and other covered executive officials shall not hold another office or employment during their tenure. The provision also prohibits them from directly or indirectly practicing another profession, participating in any business, or having certain financial interests in government contracts, franchises or special privileges.
Duterte assumed the vice presidency on June 30, 2022.
The SEC, however, has not independently determined whether Duterte’s continued position in the company constituted a constitutional violation. Del Rosario said the agency’s mandate focuses on corporate and securities regulation and that it has no directive requiring it to report public officials who may be prohibited from participating in businesses.
The impeachment court also examined Metro City Chow Foods’ dividend declarations. Del Rosario explained that the absence of dividends does not necessarily mean that a company was losing money, noting that shareholders who also serve as directors may receive reasonable per diems, while those who are employees may receive salaries.
“Ngayon kung shareholder na ito at ay director, maaari po siyang makatanggap ng additional let's say yung kanilang reasonable per diem o kung ang shareholder na to ay empleyado pa ng kumpanya maaring meron po siyang sweldo,” Del Rosario said.
