No dividends: Defense argument strengthens prosecution's case in VP's impeachment trial

The defense team's argument that Philippine law does not mandate the declaration of dividends has inadvertently strengthened the prosecution's assertion that Vice President Sara Duterte's net worth increase cannot be accounted for by the business interests she declared in her Statement of Assets, Liabilities, and Net Worth (SALN). This was stated by House prosecution panel spokesperson Zia Adiong of Lanao del Sur in a press conference. Adiong pointed out that the technical details and processes under the revised corporate law invoked by the defense do not address the fundamental question of where the Vice President obtained the wealth reflected in her SALN. "And why did the Vice President declare that all these companies who have not consistently been declaring dividends can actually justify the increase of her net worth?...It even further strengthened the case of the prosecution that these businesses are not the source of her income," Adiong added. Defense counsel Justin Gular had defended the absence of declared dividends from 10 businesses linked to Duterte and her husband Manases Carpio, citing Section 42 of the Corporation Code. This section states that the board of directors of a stock corporation may declare dividends out of unrestricted retained earnings, payable to all stockholders based on their outstanding stock. When asked by Gular if it was correct that a corporation with unrestricted retained earnings is not automatically required by law to declare dividends, SEC Company Registration and Monitoring Department Director Gerardo del Rosario replied, "Tama po" (That’s correct). Later that day, prosecution witness Rendell Sopeña, chief of the Philippine Government Electronic Procurement System (PhilGEPS) Division, told the Senate impeachment court that GenCorp. Industries Inc., listed by the Vice President as one of her business interests, won P35 million worth of government contracts during Duterte's vice presidency. Sopeña said PhilHealth Region 11 awarded 33 contracts to GenCorp., the Davao City government awarded 15 contracts, and OWWA Region 11 awarded one contract. Source: GMA News Philippines