By Wilnard Bacelonia
MANILA – The rapid expansion of GenCorp Industries Inc. from a PHP28-million business into a company generating more than PHP520 million in annual revenue came under examination at the Senate impeachment court on Monday, as a forensic expert acknowledged that its financial records did not clearly establish the sources of its funding.
The scrutiny extended to an estimated PHP250 million in unpaid corporate taxes and approximately PHP211 million in alleged undeclared wealth attributed to Vice President Sara Duterte based on her assumed ownership interest in the company.
During the hearing, Sen. Francis Pangilinan questioned forensic expert Alexander Cabrera about GenCorp’s financial growth from 2021 to 2025 despite having only PHP1.25 million in paid-in capital.
Citing Cabrera’s report, Pangilinan noted that the company, which operates Jollibee franchises, acquired approximately PHP150 million in property and equipment while financing inventories and daily operations.
The senator asked how the company could sustain such expansion without a clear accounting of the money used to finance its operations.
“I cannot explain po where the money came from. Wala po talaga ako idea kung saan po nanggaling yung pera. (I really have no idea where the money came from),” Cabrera admitted.
He said the additional funds could have originated from shareholders or other parties, but the available financial statements did not adequately establish their sources.
Cabrera explained that businesses normally use capital contributions, loans and operating income to acquire equipment, purchase inventories and meet other expenses.
However, his examination identified substantial funds entering and leaving GenCorp without corresponding disclosures that could sufficiently explain the transactions.
He maintained that the company’s rapid expansion and acquisition of restaurant franchises warranted further examination of its financing arrangements.
P250-M tax exposure
Senate President Sherwin Gatchalian, meanwhile, examined approximately PHP1 billion in bank inflows from 2022 to 2025 that Cabrera classified as undeclared after comparing bank transactions with GenCorp’s financial statements.
Gatchalian asked whether the discrepancy could represent revenues that were not reported for taxation.
Cabrera estimated a potential PHP250-million tax deficiency using a 25-percent corporate income tax rate, although the amount has not been established through a final assessment by the Bureau of Internal Revenue.
The Senate President also questioned whether shareholders could be held personally accountable for the alleged tax liability through the doctrine of piercing the corporate veil.
“Can you give us an example or cite a case?” Gatchalian asked.
Cabrera said he had not prepared a list of relevant jurisprudence and agreed to provide the corresponding court decisions or case numbers later.
The expert maintained that substantial underdeclaration could support an examination of whether a corporation’s separate legal personality had been abused.
However, the attribution of corporate tax liabilities to shareholders requires a separate legal determination, while bank inflows do not automatically constitute taxable income.
P211-M ownership estimate
The company’s ownership structure also came under scrutiny after Senator-judge Bam Aquino established that approximately PHP211 million of the PHP817.87-million alleged undeclared wealth attributed to Duterte and her husband, lawyer Manases Carpio, depended on an assumed 20-percent interest in GenCorp.
Cabrera confirmed that removing the GenCorp component would leave approximately PHP606 million in the report’s computation.
Aquino pointed out that the PHP211-million attribution could increase or decrease depending on the ownership percentage ultimately established.
“Tama po (That’s correct),” Cabrera replied.
Cabrera said his 20-percent estimate was based on Duterte’s sworn Statement of Assets, Liabilities and Net Worth (SALN), which identified an interest in GenCorp, as well as her previous business arrangements with businessman Jaime T. Cruz.
However, Duterte was not listed as a shareholder in GenCorp’s General Information Sheet filed with the Securities and Exchange Commission.
The expert said he gave greater weight to the sworn SALN declaration in his analysis, although he acknowledged that his ownership attribution involved professional judgment and assumptions drawn from the available records.
Aquino also examined the report’s treatment of corporate income, particularly the assumption that undeclared funds could be attributed to individual shareholders.
Cabrera explained that the calculation involved the possible application of the doctrine of piercing the corporate veil, which the senator-judges would ultimately have to assess.
While the remaining PHP606 million did not include the disputed GenCorp ownership estimate, other portions of the report still involved accounting interpretations and the attribution of corporate financial interests. (PNA)
IMPEACHMENT TRIAL. The Senate impeachment court continues its hearing on Monday (Oct. 12, 2026), with forensic expert Alexander Cabrera facing questions from senator-judges on alleged discrepancies in the financial records, corporate interests and asset declarations of Vice President Sara Duterte and her husband, lawyer Manases Carpio. The proceedings focus on Article II of the impeachment complaint, which involves allegations of unexplained wealth, including PHP817.87 million in assets and financial interests allegedly not properly declared. (Screengrab from Senate livestream)
