THE Mandaue City Government’s plan to return 397 sacks of unsold rice from the Sugbo Merkado Barato (SMB) program has been rejected by the Cebu Provincial Government, which will not accept the stocks.
Mandaue City Mayor Thadeo Jovito “Jonkie” Ouano said on Wednesday, Aug. 13, 2025, that the City decided to return the remaining rice, currently stored in Barangay Tawason, because there was no written contract between the City and the Province for the rice allocation.
“Hopefully, the Province will accept it so we can dispose of it properly,” he said.
However, Provincial Assistant Administrator Aldwin Empaces confirmed on Wednesday that they will not accept the rice, citing that the stocks are unusable and that a previous verbal agreement between the administrations stipulated Mandaue City was responsible for their disposal.
When asked if the Capitol might reconsider, Empaces replied, “Dili na (not anymore).”
A joint inspection by the City Agriculture Office (CAO) and the City Health Office on Aug. 4 found signs of physical contamination in opened sacks. While unopened sacks were sent to the Department of Agriculture (DA) 7 for testing, Mayor Ouano has already ordered that none of the stock be sold or distributed.
He stated that regardless of the DA’s findings, he would proceed with disposing of the rice, rejecting suggestions to give it away for free due to food safety concerns.
“Based on my research, we live in a tropical country, and rice stored for more than a year depends heavily on the storage area’s temperature. I can’t risk someone getting sick and the city being blamed. It’s better to return it,” Ouano said, expressing his hope that the Capitol would take responsibility for its disposal.
Background of the SMB program
The SMB program was launched in 2023 under then-governor Gwendolyn Garcia to sell subsidized rice and other basic goods to low-income families in Cebu amid high inflation.
Mandaue City received 1,099 sacks of rice from the National Food Authority (NFA) at P20 per kilo. Each beneficiary, identified through the Department of Social Welfare and Development’s Listahanan 3 database of poor households, was limited to purchasing two kilos per week. The city’s beneficiary list covered 4,133 residents, based on data from 2019 to 2021.
The City Social Welfare Services (CSWS) Office managed distribution with a QR code system, the City Treasurer’s Office handled collections, the CAO weighed the rice and the Management Information Systems Office provided technical support.
In a formal reply to a memorandum from Mayor Ouano, CSWS head Michael Pielago explained that the City retrieved the rice from the NFA warehouse in November 2023 and began sales in front of City Hall. However, personnel soon reported seeing “worms” in the stocks and turnout for sales was low.
Residents from far-flung barangays found the two-kilo weekly limit impractical, as transportation costs often exceeded the savings. The beneficiary list was also outdated, making it difficult to reach many of the listed recipients.
Sluggish sales
To address sluggish sales, the City attempted mobile selling in select barangays, but the strict purchase cap and QR code verification requirement continued to discourage buyers.
In January 2025, the Provincial Government informed Mandaue it would have to pay for the unsold rice.
Pielago said this came as a surprise, as the City had never been told of such an obligation, either verbally or in writing.
The City proposed two alternatives: return the rice to the Province or allow larger purchase quantities, but both were rejected.
By April, the Province launched a fresh batch of rice for sale, but Mandaue’s request to finish selling its old stock was denied.
Sales were later suspended due to the election ban, leaving hundreds of sacks in storage.
The matter is further complicated by issues involving finances.
Data from the Provincial Social Welfare and Development Office show Mandaue actually received 1,198 sacks of rice valued at P1,198,000. Provincial Treasurer Roy Salubre confirmed the City had made an initial payment of P121,000, leaving an unpaid balance of about P1,077,000.
Empaces revealed that there was no paper trail or written contract for the arrangement.
The Mandaue City Treasurer’s Office has separately documented three deposits totaling P108,560, covering sales of just 47 sacks, which were made in late 2024.
Empaces admitted there is no written contract or paper trail for the arrangement but insisted the program guidelines were clear and that the City was responsible for disposing of any unsold rice.
Despite the current stalemate, Empaces expressed hope that the two administrations could meet to find a resolution.
“Hopefully, they will discuss the matter about it so they have good ways forward,” he said. / CAV, CDF