Malacañang said repeatedly claiming a lack of knowledge about questionable government transactions could set a dangerous example for other local officials.
Palace Press Officer Claire Castro made the statement following the testimony of Davao City Mayor Baste Duterte during the impeachment trial of Vice President Sara Duterte.
During the hearing, Duterte said he was not aware of the alleged financial interest of his sister, the vice president, in GenCorp.
Castro said there is a legal doctrine that allows a government leader to rely on subordinates in good faith. However, she said the defense of not knowing about transactions should not be repeatedly used when anomalies are already apparent.
The Palace said allowing officials to simply claim they did not know or did not inquire about transactions could become a dangerous example for other mayors.
The issue arose after details of GenCorp’s contracts with the Davao City government were discussed during the hearing.
GenCorp obtained 19 contracts from the Davao City local government, according to the information presented. Of the 19 contracts, 15 reportedly did not undergo public bidding, while four involved GenCorp as the sole bidder.
The Palace’s reaction followed Duterte’s testimony that he had no knowledge of his sister’s alleged financial interest in GenCorp.
The statements from Malacañang focused on the broader question of whether a local chief executive can rely on a lack of knowledge when questioned about questionable transactions involving the government unit under their leadership.
The issue remains part of the proceedings involving the impeachment case against Vice President Sara Duterte.
The Palace statement, as presented in the report, concerned the use of lack of knowledge as a defense and did not itself establish liability over the GenCorp contracts.