PH Constitution bans President, VP from engaging in business, former Sandiganbayan Justice says

Former Sandiganbayan Presiding Justice Amparo Cabotaje-Tang told the Senate impeachment court on Monday that the Constitution imposes an absolute ban on business participation for the President and Vice President, citing the heightened risk of abuse tied to their extensive powers.

Testifying on the 24th day of Vice President Sara Duterte’s impeachment trial, Cabotaje-Tang addressed a query from Senator-Judge Panfilo Lacson on why this strict prohibition targets only the nation’s top two officials—excluding governors, mayors, senators, and House members.

“Given the fact that the President and Vice President are the two highest officials of the land... there is a greater possibility of abuse of their office,” Cabotaje-Tang explained. “They have greater powers, as stated by the Supreme Court. That’s why the prohibitions are more stringent for them.”

While acknowledging that Republic Act No. 6713 (the Code of Conduct and Ethical Standards for Public Officials and Employees) regulates other public servants, Cabotaje-Tang emphasized that the restriction is "absolute" for the President, Vice President, and their spouses.

Under Article VII, Section 13 of the Constitution, the President, Vice President, Cabinet members, and their deputies or assistants are barred during their tenure from directly or indirectly practicing any other profession, participating in any business, or holding financial interests in government contracts, franchises, or special privileges. This restriction also extends to government-owned or -controlled corporations and their subsidiaries.

Senate Impeachment Court Presiding Officer Francis Escudero sought clarification on the constitutional phrase “participate in any business” versus “have an interest in any business.”

“What does that mean? Does it mean they can’t own a business, or that they can’t participate in a business they own—meaning, actively run it?” Escudero asked.

Cabotaje-Tang clarified that the rule covers both direct and indirect involvement. “Whether ownership in a corporation or participating as a director or officer... that is prohibited,” she said.

When Escudero asked if this requires a sitting President or Vice President to surrender ownership of any enterprise—even a small sari-sari store—upon taking office, Cabotaje-Tang confirmed: “Yes, sir. In fact, under the law, there is a need to divest immediately upon assumption of office, within 30 days.”

-Paraluman News