PhilGEPS: 11 Davao contracts awarded without public bidding

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A Philippine Government Electronic Procurement System (PhilGEPS) official testified before the impeachment court that at least 11 contracts worth about P8 million were awarded by the Davao City government under Mayor Sebastian “Baste” Duterte to a company linked to Vice President Sara Duterte, without undergoing public bidding.

PhilGEPS Electronic Government Procurement Operations Division Chief Rendell Sopeña made the disclosure in response to questioning by Senator-Judge Risa Hontiveros regarding procurement transactions involving GenCorp. Industries Inc., a firm declared by the Vice President as part of her business interests in her Statement of Assets, Liabilities, and Net Worth (SALN).

Sopeña said Davao City awarded 15 contracts to GenCorp, of which only four went through public bidding. The remaining 11 were processed via negotiated small-value procurement. He cited specific contract amounts ranging from P49,800 to over P800,000, estimating the total at around P7–8 million.

He further noted that Davao City’s total procurement with GenCorp amounted to P34.2 million. GenCorp, he added, had secured 49 government contracts worth P35.9 million from various agencies, including PhilHealth Region XI and OWWA Region XI, during Duterte’s vice presidency.

Senator-Judge Joel Villanueva raised concerns that the city may have split contracts to avoid bidding requirements, pointing out that the transactions involved similar supplies such as food and catering services.

Sopeña confirmed the goods were identical, though awarded on different dates.

The revelations prompted questions from senator-judges about potential conflict of interest, given that Vice President Duterte owns shares in GenCorp while her brother heads the Davao City government. Senator-Judge Raffy Tulfo asked whether such transactions should have been flagged for conflict of interest.

House prosecutor Rep. Gerville Luistro argued that the deals violated constitutional ethics standards, citing Article VII, Section 13 of the Constitution.

She said that the Vice President faces three ethical breaches: owning a business, operating it, and engaging in conflict of interest. ||