Politics · Philippines Bureau
GenCorp's Rapid Sales Growth Draws Scrutiny Over VP Duterte Connection
A company allegedly linked to Vice President Sara Z. Duterte has seen its annual sales skyrocket from P28 million to over P520 million in four years, prompting lawmakers to question how such growth was achieved with minimal capitalization.
LSN Philippines ·
MANILA — GenCorp Industries Inc., a firm with reported ties to Vice President Sara Z. Duterte, has come under legislative scrutiny following revelations about its extraordinary financial expansion. Former Representative Robert Ace Barbers, serving as House prosecution adviser and spokesperson, raised questions about the company's ability to increase annual sales from P28 million to more than P520 million over a four-year period.
The concerns center on a apparent disconnect between the company's capital structure and its sales trajectory. GenCorp reportedly operates with only P1.25 million in paid-in capital, a figure that appears disproportionate to the scale of its alleged revenue growth, according to Barbers' remarks during recent proceedings.
The inquiry reflects broader legislative interest in examining the financial operations and business dealings of entities connected to high-ranking government officials. Barbers' questioning of the company's metrics suggests lawmakers are examining whether the growth pattern is consistent with normal business operations or warrants further investigation.
GenCorp Industries' connection to the Vice President has added political dimensions to what would otherwise be a corporate finance matter. The company's rapid ascent in revenue generation has become the subject of official scrutiny as part of wider oversight efforts by the House of Representatives.