Duterte's ignorance of sister's corporate stake branded due diligence failure

MANILA — Private prosecutor Lorna Kapunan on Tuesday challenged Davao City Mayor Sebastian "Baste" Duterte's assertion that he did not know his sister, Vice President Sara Duterte, held a stake in GenCorp Industries Inc., describing his statement as a damaging "confession."

Kapunan argued that the mayor's lack of knowledge about the corporate interest demonstrated a failure to exercise proper "due diligence" in his business and family affairs. The criticism comes as scrutiny intensifies over the Duterte family's financial interests and potential conflicts of interest.

The issue touches on questions of corporate governance and transparency regarding the financial holdings of high-ranking government officials and their immediate relatives. Vice President Duterte has faced mounting pressure from lawmakers and civil society groups to clarify her business interests and their potential overlap with her official duties.

The exchange underscores ongoing tensions in the Senate and among political observers over the scope of disclosure requirements for government officials and their families, as well as standards for investigating potential violations of ethics and transparency rules.