The first enforcement operation of the Anti-Agricultural Economic Sabotage (AAES) Council has resulted in the discovery of P38 million worth of allegedly smuggled rice inside a warehouse in Talisay City, Cebu province, last month.

In a report on Wednesday, the AAES Council—headed by Special Assistant to the President for Economic and Investment Affairs, Secretary Frederick Go — said a total of 20,526 sacks of rice were found in the Kimba compound in Talisay City on 20 June.

This followed a Letter of Authority issued by the Executive Committee, composed of Secretary Go, Justice Secretary Jesus Crispin Remulla, and the Enforcement Group (EG), led by the Philippine National Police-Criminal Investigation and Detection Group and the Maritime Group. The letter authorized the inspection of various warehouses suspected of containing smuggled agricultural products, in violation of Republic Act No. 12022 or the AAES Law.

Authorities discovered that the area occupied by River Valley Distribution Inc. contained substantial rice stocks.

The company failed to account for approximately 20,526 sacks weighing about 863,345 kilos, with an estimated value of P38 million.

On 8 July 2025, the Court of Tax Appeals granted a seizure order against the goods, following a petition filed by the PNP-CIDG in coordination with a special team of prosecutors from the DOJ.

“The goods were inspected, examined, and found to be illegal. This decisive action sends a strong and clear message to economic saboteurs: The government stands united and shall be relentless in its efforts against such illegal activities,” Secretary Go said, adding that the operation underscores President Ferdinand R. Marcos Jr.’s strong commitment to safeguarding food security and upholding the rule of law.

DOJ prosecutors plan to file economic sabotage charges—a non-bailable offense under Philippine law—against those responsible.

The AAES Council was established to combat large-scale agricultural smuggling, hoarding, profiteering, and cartels.