The prosecution in Vice President Sara Duterte’s impeachment trial said it is hard to believe Davao City Mayor Sebastian Duterte’s claim that he did not know about the ties of his sister and business partner Jaime T. Cruz to Gencorp Industries, Inc., which won 19 contracts from the city government.
Prosecution team spokesperson and Lanao del Sur Rep. Zia Alonto Adiong said they were “not born yesterday” as he alleged that there is a clear conflict of interest and “connivance” in the award of contracts to Gencorp.
Adiong said that Sebastian, as head of the procuring entity, cannot feign ignorance about the companies that enter into contracts with the city government.
He noted that Sebastian admitted to knowing Jaime T. Cruz, who holds the controlling interest in Gencorp, where the Vice President is a stockholder.
Cruz is also in business with Sebastian in Chinese Gen Bee Foods Corp.
Adiong also noted that out of Gencorp’s 19 contracts with Davao City, only four underwent competitive bidding and the rest were negotiated contracts.
He pointed out that one of the invitation to bids lacked specifics such as what item would be offered. It only contained the general term “food.”
“How can you actually make quotations on the market value of the food you need to provide just to get the amount na napanalunan mo?” he said.
He contended that this shows “connivance,” at the very least, to prefer a singular company that is part-owned by Cruz, Sebastian’s co-shareholder in another company.
“Hindi ho kapani-paniwala na hindi niya kakilala or hindi man lang nabigyan ng preferential treatment itong si Gencorp,” he added.
He also said no contract would reach the final stage without the explicit approval, or at the very least the guidance, of the head of the procuring entity, which is Sebastian.
He further alleged that the contracts that Gencorp won from Davao City appeared to be “tailor fit” for the company, citing the possible adjustment of the requirement that contractors of the city should have been in operation for at least five years.
Meanwhile, House prosecutor Manila Rep. Joel Chua said that even if Sebastian did not know about his sister’s ties to Gencorp, there is a conflict of interest because he is in business with Gencorp’s Cruz in another company.
Sebastian testified as a hostile witness in the Vice President’s impeachment trial in relation to unexplained wealth allegations.