[Inside the Newsroom] How Rappler uncovered Sara Duterte’s company contracts with Davao City Hall
Rappler has exposed government officials' conflicts of interest involving infrastructure projects. The story of Sara Duterte and Gencorp revealed that this kind of scheme can also happen in food contracts. And perhaps…
Source: Rappler · October 11, 2026 at 4:32 PM · AI-assisted report
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KUALA LUMPUR, 12 OCTOBER 2026 —
Rappler’s public finance reporter Patrick Cruz has revealed how a routine assignment to cover the impeachment trial of Vice President Sara Duterte led to the uncovering of significant conflicts of interest involving her family’s business interests and local government procurement.
Market Impact
The investigation, published in October 2026, details how Cruz traced millions of pesos in food contracts awarded to Gencorp, a company linked to the Duterte family, by the Davao City Hall and the PhilHealth Davao Regional Office.
This discovery emerged from a systematic review of government procurement records, Statements of Assets, Liabilities, and Net Worth (SALN), and Securities and Exchange Commission (SEC) filings, exposing a network of financial ties that had previously remained obscured in public view.
The significance of this reporting lies in its demonstration that conflicts of interest are not limited to large-scale infrastructure projects, which have been the subject of recent corruption scandals in the Philippines, but also permeate smaller, less scrutinized sectors such as food supply.
By mapping out these connections, Rappler highlights a broader pattern where political families leverage their positions to secure government contracts, raising questions about the integrity of public spending and the transparency of official asset declarations. The story serves as a case study in investigative journalism, illustrating how following the money can reveal hidden layers of political and economic entanglement that impact public trust and fiscal accountability.
Cruz’s path to this investigation began with his assignment as one of three Rappler reporters covering the impeachment trial of Vice President Sara Duterte. Specifically tasked with covering the senator-judges, Cruz reported on the proceedings, the courtroom atmosphere, and the judicial decisions. On July 20, 2026, he wrote a story detailing the impeachment court’s issuance of subpoenas for the bank and tax records of companies linked to Duterte and her husband, Mans Carpio.
This development prompted Cruz to question whether these entities were also engaged in business with the government, a line of inquiry driven by the observation that the country is often run by politicians whose companies, or those of their relatives, earn billions of pesos from infrastructure projects funded by taxpayer money.
Driven by this question, Cruz began checking the companies linked to the Vice President against government procurement records. His initial search yielded a critical finding: Gencorp had won millions of pesos worth of food contracts from both the Davao City Hall and the PhilHealth Davao Regional Office. This discovery marked the start of a two-month investigation that required meticulous documentation and verification. Cruz compiled the identified contracts into a Google Sheet, verifying each entry individually.
He cross-referenced these findings with Duterte’s SALN across several years and examined a wide array of procurement documents, including bidding documents, purchase orders, and notices of award. To further validate the corporate structure, the newsroom purchased Gencorp’s General Information Sheet from the SEC, a process that requires payment for such documents.
Despite these efforts, the SEC records introduced a new layer of complexity rather than clarity. Cruz noted that Duterte’s name did not appear in the SEC records for Gencorp. However, he identified businessman Jaime Tan Cruz as a shareholder of the company. Tan Cruz is a known associate of former President Rodrigo Duterte, Sara’s father, who appointed him as Special Envoy to the People’s Republic of China for Trade and Investment.
Tan Cruz had also been considered for the position of PhilHealth president and CEO. Subsequent findings revealed that Tan Cruz is a business partner of the Duterte siblings, including Vice President Sara Duterte, Davao City Mayor Sebastian “Baste” Duterte, and Davao City 1st District Representative Paolo “Pulong” Duterte. This network of relationships underscored the depth of the family’s business interests and their intersection with public office.
The publication of Rappler’s report sparked immediate political reaction. Paolo Panelo, the spokesperson for Vice President Duterte, criticized the headline as “misleading,” arguing that Gencorp was not the Vice President’s company. This defense, however, raised further questions regarding the accuracy of official disclosures. Cruz pointed out that Duterte had declared Gencorp as one of her businesses in her sworn SALN.
As of the publication of the report, the Vice President had not answered the question of why she included the company in her asset declaration if it was not hers. The discrepancy between the SEC records and the SALN remains a central point of contention in the narrative of the investigation.
Following the release of the investigative report, the issue was formally addressed within the impeachment court proceedings. The contracts won by Gencorp were discussed in relation to Duterte’s alleged unexplained wealth. The legal proceedings took a significant turn when Davao City Mayor Baste Duterte, who was not initially listed as a witness in the trial, was compelled to appear before the court.
He was required to answer questions regarding the government contracts won by a company linked to his sister. During his testimony, Mayor Duterte stated that he did not know his sister had an interest in Gencorp. He further claimed that he was unaware that the company had won millions of pesos worth of contracts from the city government he leads.
In a notable admission, Mayor Duterte told the court that Gencorp had received even more contracts than those identified in Rappler’s initial report. This testimony expanded the scope of the investigation, suggesting that the full extent of the company’s business dealings with the local government may be larger than previously documented. The court’s engagement with these facts highlights the ongoing scrutiny of the Duterte family’s financial activities and the potential implications for the impeachment case.
The testimony serves as a critical data point in the broader narrative of accountability and transparency in Philippine governance.
For Rappler, the investigation exemplifies the newsroom’s commitment to “moving the story forward.” Cruz reflected on the discipline required to go beyond the immediate news peg, such as the issuance of subpoenas, and to dig deeper into the paper trail. He emphasized that this approach involves digging through documents, checking records, following names, and pursuing the next lead, even when the path is unexpected.
This methodology has been instrumental in producing investigative stories that expose conflicts of interest, particularly in the wake of the flood control corruption scandal. The Gencorp story demonstrates that such schemes are not confined to infrastructure but can also occur in food contracts, a sector that is often less visible to the public eye.
The investigation also serves as a call to action for the public and local communities. Cruz suggested that similar stories may be hiding in procurement records across the country, where local officials or their relatives may have business interests that intersect with government contracts. He cited examples such as family-owned fast food franchises supplying government events, or businesses providing sound systems, laptops, security services, or fuel for government vehicles.
By encouraging readers to report such schemes to Rappler’s investigative team, the newsroom aims to expand its reach and uncover further instances of potential corruption. The story underscores the importance of public vigilance and the role of investigative journalism in holding power to account.
The publication of this report marks a significant development in the ongoing scrutiny of the Duterte family’s political and economic influence. It provides a detailed account of how investigative techniques, such as cross-referencing procurement records with asset declarations and corporate filings, can reveal hidden conflicts of interest. The reaction from the Vice President’s spokesperson and the subsequent testimony of Mayor Duterte in the impeachment court highlight the political stakes involved.
As the impeachment trial continues, the findings regarding Gencorp and the Duterte family’s business partners will likely remain a focal point of legal and public debate. The story concludes with the recognition that the trail of money in Philippine politics is complex and often obscured, requiring persistent and rigorous journalism to bring to light.