THE Cebu Provincial Government will convert Mandaue City’s debt of more than P1 million for unsold rice into financial assistance.
The agreement, reached between Gov. Pamela Baricuatro and Mayor Thadeo “Jonkie” Ouano, resolves the issue of 397 sacks of rotting rice from the suspended Sugbo Merkado Barato (SMB) program.
Mandaue City is now permitted to dispose of the rice, which may no longer be fit for human consumption and may be used for other purposes like animal feeds.
The agreement was reached on Monday, Sept. 15, 2025, after a meeting between Baricuatro and Ouano at the Provincial Capitol.
Provincial Assistant Administrator Aldwin Empaces told reporters the Capitol will no longer bill Mandaue City for the amount.
The sacks of rotting rice was discovered in a Mandaue City warehouse on Aug. 4.
The rice was part of the SMB program of former governor Gwendolyn Garcia.
A SunStar Cebu report on Aug. 7 said legal uncertainties hampered the City’s next move following the discovery, as city officials were still trying to determine if a memorandum of agreement (MOA) was signed by the City with the Provincial Government regarding the rice allocation.
Baricuatro had refused to accept the stocks back, saying the rice was no longer usable.
However, her latest decision allows Mandaue City to dispose of the remaining rice.
Empaces said Baricuatro is leaving it to Ouano’s discretion on how to dispose of the rice.
Confirmation
“The more than P1 million total will be made into cash assistance from the governor to Mandaue. Whatever can still be used, which can be fed to pigs or other things, Mandaue will handle that. Mayor Jonkie will decide,” Empaces said in Cebuano.
Ouano confirmed the negotiations with Baricuatro.
“Governor Pam told us that this is financial assistance to the City, so we will be the ones to dispose of it,” said Ouano adding that the 397 sacks of unsold rice were now “cleared” even without a MOA.
The SMB program was launched in November 2023 under then governor Garcia. It was designed to help local farmers and fisherfolk sell their products directly. Subsidized rice from the National Food Authority was also sold through the initiative.
The Provincial Social Welfare and Development Office (PSWDO) was responsible for distributing the rice to indigent beneficiaries. Each beneficiary could purchase two kilos of rice using a QR code card.
According to the PSWDO, the Capitol distributed a total of 10,000 sacks of rice to 51 municipalities and cities. The local government units were responsible for distributing the rice.
The program was suspended during the 2025 midterm elections due to a Commission on Elections ban on government aid distribution. It has not resumed since. / CDF / ABC