THE Department of Social Welfare and Development-Davao Region (DSWD-Davao) denied claims that the P15,000 Seed Capital Fund (SCF) for beneficiaries of the Sustainable Livelihood Program (SLP) in Mati City, Davao Oriental was converted into grocery vouchers.
Rhuelo D. Aradanas, DSWD-Davao regional director, clarified that under SLP guidelines stated in Memorandum Circular 03, series of 2025, the seed capital is directly released to beneficiaries and must be used for their proposed microenterprise.
“Wala pong anumang kasunduan o directive ang DSWD sa kahit anong opisina para i-convert ang cash grants into vouchers o mag-designate ng anumang grocery store,” he said on Thursday, April 16, 2026.
(There is no agreement or directive from the Department of Social Welfare and Development [DSWD] to any office to convert cash grants into vouchers or to designate any grocery store.)
Aradanas added that before the amount is released to the beneficiaries, they undergo an orientation wherein it is explained to them how the SCF should be used for approved livelihood projects, and not for personal consumption.
He said that if there is a conversion of the SCF into grocery vouchers, then it is not authorized, was not facilitated by the department, and is not required by the program.
Aradanas said that the integrity of their program is non-negotiable and that their office upholds transparency, accountability, and the proper use of government resources.
He said their office would conduct validation and monitoring to ensure that the guidelines are followed and that the cash grants are used correctly.
However, he clarified that they would not yet conduct an investigation since there have been no formal complaints filed in their office.
Aradanas vows to resign if DSWD employees involved
Aradanas said that if it is found out that the SCF was converted into grocery coupons by DSWD employees, then he would immediately resign. He said that this is how confident he is that there is no truth to the claims that the department is involved in converting the SCF.
He added that the department has the names of the beneficiaries and photos of them receiving the amount; however, he clarified that what happens after the distribution is beyond their control.
Aradanas then called on those whose SCF was converted into grocery coupons to file complaints against those responsible, advising them that all they needed to do was fill out the complaint documents and an affidavit.
“Ako mismo ay humahamon o kaya hinihikayat na may lumabas na complainant para at least matulungan natin libre ang abogado (I myself am challenging or encouraging someone to come forward as a complainant so that we can at least help them — we’ll provide a lawyer for free),” he said.
He said that this is not the first time that such things have happened and that they have an ongoing similar case in another program.
Alleged conversion to grocery coupons
The statement came after a social media post went viral claiming that the P15,000 SCF given to beneficiaries was converted into grocery vouchers for a grocery store in the city.
In a Facebook post, Mac BogBangas Amora questioned how true the claims were of an SLP beneficiary of DSWD, alleging that the P15,000, after being used for a photo opportunity, was then replaced with a coupon.
“Aduna bay Memorandum o Balaud Ang DSWD nga Ang 15K para SA livelihood Program nga kinahanglan e convert into Coupon SA usa ka Grocery Store SA Mati City? kung walay balaud o Memo? Ngano Inyo gi tugotan?” he wrote in a Facebook post on April 15, 2026.
(Is there a memorandum or law from the Department of Social Welfare and Development stating that the 15,000 pesos for the livelihood program must be converted into coupons for a grocery store in Mati City? If there is no law or memorandum, why did you allow it?)
Amora said that the alleged conversion would greatly benefit the grocery store, since there are about 900 beneficiaries who would be receiving P15,000, amounting to P13.5 million.
In another Facebook post, Amora questioned whether those who received the aid actually have a store or a business, and whether there was proper validation to determine the rightful beneficiaries. He also questioned whether there would be an investigation into the matter.
Aradanas said that they are considering filing a case against the individual and are looking into whether the post constitutes cyber libel, since it claims that the department is responsible for the conversion of the SCF.
Releasing of SLP in Mati
Before the issue of the SCF being replaced with grocery coupons, DSWD-Davao conducted the release of SCF to SLP beneficiaries in Mati City on April 10, 2026.
Dexter M. Lara, SLP regional program coordinator of DSWD-Davao, said that there were about 943 beneficiaries that day, and only four were unable to claim their SCF because they were already in Manila.
He said that during the release that day, there were no complaints from the beneficiaries. He added that they even have a complaints and grievance desk, so if beneficiaries have any concerns, they can raise them to the office.
SLP is a community-based capability-building program that provides seed capital funds and skills training to poor, vulnerable, and marginalized households by helping them establish sustainable microenterprises.
In the Davao Region, the SLP has a budget of P156 million, and as of April, the department has already distributed P77 million. RGP
