THE rice from the Cebu Provincial Government’s Sugbo Merkado Barato (SMB) program should have been disposed of within two months, according to Maria Rose Lopez, officer-in-charge of the Provincial Social Welfare and Development Office (PSWDO).
Lopez made this statement on Tuesday, Aug. 5, 2025, a day after the discovery of 397 sacks of rotting rice in a warehouse in Barangay Tawason, Mandaue City.
The incident has prompted the Province to review both the SMB program and the quality of the rice, according to Assistant Administrator Aldwin Empaces.
Mandaue City Agriculturist Shella Mangadlao said her office conducted a random sampling of the stored rice on Monday, Aug. 4, to determine if it was still safe for human consumption. Mangadlao noted the samples were submitted to the Department of Agriculture for laboratory testing, and the results are still pending. Once the results are available, a recommendation will be issued. The remaining rice may be distributed to indigent beneficiaries or disposed of properly, depending on the food safety test results.
The Province also stated that the Mandaue City Government has an unpaid balance of more than P1 million for rice distributed during the SMB program’s launch over a year ago. For its part, the City Government said it did not use any of its own funds for the 397 sacks of unsold rice. Assistant City Treasurer Julie Ballesteros explained that the SMB rice, which was sold at P20 per kilo, was on a consignment basis. This means the City acted as a selling agent and remitted all proceeds to the Capitol.
Data from the PSWDO shows that Mandaue City received 1,198 sacks of rice for 4,137 beneficiaries, with a total value of P1,198,000 at a cost of P20 per kilo. Records also show Mandaue City made an initial payment of P121,000, leaving an unpaid balance of P1,077,000. Provincial Treasurer Roy Salubre confirmed the amount and the initial payment from the Mandaue City Treasurer’s Office (CTO).
Ballesteros said her office was still computing the full amount remitted to the Provincial Government, as deposits were made in partial batches over time. The CTO has so far made three documented deposits: P23,000 on Nov. 19, 2024; P36,800 on Nov. 20; and P48,760 on Dec. 15. In total, these deposits account for 2,360 kilograms, or about 47 sacks of rice, with a total amount of P108,560. Each sack contains 50 kilograms.
Ballesteros said she could not provide an estimate of the potential loss or value of the 397 unsold sacks because her office was not involved in the arrangement or valuation of the rice supply.
According to data from the Provincial Treasurer’s Office, other local government units (LGUs) also have unpaid balances from the program’s initial rollout, including Argao (P27,600), Boljoon (P2,400), Borbon (P22,580), Oslob (P2,360) and Tuburan (P27,320).
Program profile
The SMB program began in November 2023 under former governor Gwendolyn Garcia.
Provincial Agriculture Head Roldan Sarajena said in a separate interview that the program allowed farmers and fisherfolk to sell their products directly. Subsidized rice from the National Food Authority (NFA) was also sold as part of the initiative.
The PSWDO was responsible for distributing the rice, according to Lopez. The program targets indigent families identified from the Department of Social Welfare and Development’s “Listahan” database. Each beneficiary can purchase two kilos of rice using a QR code card.
Lopez said the Capitol has distributed a total of 10,000 sacks of rice to 51 municipalities and cities. Once the rice is with the LGUs, they decide how to distribute it.
“Each LGU will be the one to pick up the allocated number of rice and they will be the one to distribute to their respective municipalities,” Lopez said.
The SMB program was not suspended in 2023, as was earlier reported, but during the 2025 midterm elections due to a Commission on Elections ban on government aid distribution. The program did not resume afterward.
The program sold crops from local farmers and fisherfolk, along with products from small and medium-sized businesses. The Province allocated P200 million to purchase rice, with P100 million for 80,000 bags of rice from the NFA and another P100 million for commercial rice.
Two lists of beneficiaries existed for the program: DSWD’s “Listahan” had 199,000 individuals, while a separate list from the LGUs had 303,000. / CDF, CAV