Manila: Mere ownership of company shares may already fall within the constitutional prohibition against a President or Vice President participating in business, a former Sandiganbayan chief told the Senate impeachment court Monday. The issue surfaced when presiding officer Francis 'Chiz' Escudero pressed retired Sandiganbayan presiding justice Amparo Cabotaje-Tang on how far the constitutional ban extends - whether it covers only actively running a company or also retaining ownership after assuming office.
According to Philippines News Agency, Escudero asked if it was her position that a President and/or Vice President should divest from any businesses they may have after taking their oath. 'Yes, sir,' Cabotaje-Tang replied. Escudero then tested the interpretation further, inquiring whether the same would apply even to a small business. 'So, it is your position that if you are President and Vice President, you have to divest from any and all businesses. Maski sari-sari store pa yan (Even if it is just a neighborhood retail store)?' he asked. 'Yes, sir,' Cabotaje-Tang affirmed.
Senator-judge Pia Cayetano later sought clarification after Cabotaje-Tang earlier said a President or Vice President could receive dividends from shares. Cabotaje-Tang clarified that dividends already accrued before the assumption of office could still be received, but she maintained that stock ownership itself should be divested after taking office. Cayetano asked whether this would apply even to shares in a publicly listed corporation where the stockholder does not participate in management. 'Yes, ma'am,' Cabotaje-Tang replied.
The exchange is relevant to Article II of Vice President Sara Duterte's impeachment case, which includes an allegation that she continued to hold business interests after assuming the vice presidency. The House prosecution earlier cited Securities and Exchange Commission records allegedly showing Duterte remained a shareholder and board member of Metro City Chow Foods Corporation during her tenure.
Cabotaje-Tang's testimony also laid out an interpretation of Article VII, Section 13 of the Constitution, which bars the President and Vice President from directly or indirectly participating in any business during their tenure. Republic Act 6713 separately requires public officials to avoid conflicts of interest and, when one arises, to resign from a private business position within 30 days and divest shareholdings or interests within 60 days from the assumption of office.
