AT LEAST 397 sacks of rice from the Sugbo Merkado Barato (SMB) program that were left to rot in Mandaue City have been declared unfit for human consumption after sitting in storage for over a year without inspection or proper handling.
The rice was part of the SMB program, launched in 2023 under then-governor Gwendolyn Garcia to help indigent communities access cheaper goods amid soaring prices.
Overall situation
The City Government’s failure to distribute the rice highlights a breakdown in program management that left a valuable resource to rot while many are in need.
City Administrator Sally Malig-on said Thursday, Aug. 7, 2025, that initial findings from a joint inspection conducted last Aug. 4 by the City Agriculture Office and City Health Office found signs of physical contamination in several opened sacks. Unopened sacks are undergoing further testing in coordination with the Department of Agriculture.
Mayor Thadeo Jovito “Jonkie” Ouano has halted distribution and seeks safe disposal options.
Findings
Storage missteps: The rice was stored in Barangay Tawason for over a year, left unsold due to low demand and poor planning. There was no stock rotation or periodic inspection, according to Malig-on.
Program design flaws: Malig-on said strict eligibility requirements and a two-kilo purchase limit discouraged participation, especially from residents of distant barangays. Transportation costs outweighed the savings of P20 per kilo rice. He said it is “impractical for someone to spend money on transportation just to buy two kilos of rice.”
No agreement found: Malig-on said there’s no clear documentation — no memorandum of agreement — between the Mandaue City Government and the Provincial Government, leaving the City unsure how to dispose of or pay for the unsold inventory.
Financial impact: The City Treasurer’s Office recorded only three partial payments in late 2024 totaling P108,560 — covering 47 sacks. The value of the remaining 397 sacks is unclear due to the lack of a pricing agreement. According to the Capitol, City Government has an unpaid balance of more than P1 million for rice under the SMB program.
The City Social Welfare and Services (CSWS) office has been asked to explain the handling of the inventory. A formal investigation is possible if evidence of wrongdoing is found. CSWS is responsible for distributing SMB rice.
What Malig-on is saying
On accountability: Malig-on said, “This happened during the previous administration, so we still don’t know who was directly responsible.” The City also cannot locate a memorandum of agreement, making it unclear whether it should return the rice or pay for it. Ouano succeeded Glenn Bercede, who became mayor after serving as vice mayor following the suspension and eventual dismissal from service of then-mayor Jonas Cortes in 2024.
On the cause: Malig-on dismissed the election bans in 2023 (barangay and Sangguniang Kabataan elections) and 2025 (midterm elections) as reasons for the failure to distribute the rice. “There was no ban in 2024. That was an entire year where we could’ve resumed distribution, but it seems no one acted on it,” he said.
The Mandaue City Government is now saddled with spoiled rice and a P1 million bill.
The incident has triggered an internal review to determine how a program meant to help the poor was undone by a year of inaction. / CAV