Divided council OKs P20 rice in Cebu

After months of debate and delay, Cebu City is finally moving forward with the presidential P20-per-kilo rice program.

The go-signal came after a divided Cebu City Council voted to allow its implementation, clearing the way for Mayor Nestor Archival to sign an agreement with the national government that will govern how the cheap rice will be stored and sold in the city.

The decision, however, did not come easily.

During a special session, a slim majority of councilors voted in favor of the program, overruling objections from the opposition bloc led by Vice Mayor Tomas Osmeña.

“I would like to remind you of what happened in Mandaue, where there were so many hundreds of sacks of rice that were exploited,” Osmeña warned on the council floor. “We are opening ourselves up to criticism.”

“Until the proponent can come up with an intelligent system safeguarding the resources of the city, I move to oppose the resolution,” he added.

Despite the objections, the Cebu City Legal Office gave the program a favorable legal opinion, citing safeguards built into the amended memorandum of agreement (MoA) with Food Terminal Inc. (FTI), the national agency supplying rice under the Kadiwa ng Pangulo program.

Under the revised setup, all rice deliveries from FTI will be treated as consigned goods. Ownership remains with FTI until the rice is actually sold, distributed, or otherwise properly disposed of — an arrangement meant to protect city funds.

City Attorney Briccio Joseph Boholst explained that the city government’s role will be limited to that of a consignee-administrator.

“There will be no obligation to pay for rice upon delivery,” Boholst said. “The city will disburse public funds only after actual sale or disposition of the product. This is consistent with established principles of government fiscal responsibility.”

He added that proceeds from rice sales will be treated as trust funds, subject to segregation, verification, and proper liquidation — measures meant to address potential audit concerns.

“This Office finds this arrangement legally significant as it clearly distinguishes the transaction from a sale and prevents premature transfer of ownership,” Boholst said.

Mayor Archival, for his part, said Cebu City would proceed cautiously.

He revealed that he has asked FTI to begin with a limited delivery as part of a pilot run.

“I will request for an initial 50 sacks of rice. I will prepare a memorandum of understanding. We will take the rice and they will deliver and sell it. We will pay them afterward,” Archival said.

The mayor added that FTI may sell the P20-per-kilo rice in designated barangay selling areas. For the pilot phase, the national government has allocated 10,000 sacks of rice for Cebu City.

Archival stressed that the city is determined to avoid the problems encountered by neighboring Mandaue City, which earlier reported the spoilage of hundreds of sacks of rice under a similar program.

Under the P20-per-kilo rice initiative, FTI purchases rice at around P33 per kilo and sells it to the public at P20. The P13 difference is subsidized by the national government and participating local government units.

In the end, the resolution authorizing the program passed narrowly, with a 7–6 vote and one abstention, after several deferments.

Once fully rolled out, the program will benefit indigent families, senior citizens, persons with disabilities, solo parents, disaster victims, and indigenous peoples — groups the city says need relief the most amid rising food prices.