The Commission on Audit (COA) has raised concerns over Mandaue City's expenditure of P55.525 million for its "Gugma sa Pasko (Love at Christmas)" food bundle program. The audit report indicated that the city failed to adequately demonstrate how this financial assistance addressed specific socioeconomic issues and development gaps within the community.
In December 2025, Mandaue distributed 100,000 Christmas bundles, each valued at P595.25, to households, both those registered and unregistered in the Community-Based Monitoring System. However, COA's audit observations pointed out that the developmental purpose of this program and its contribution to defined objectives were not clear. The report highlighted that the strategic relevance of the expenditure in relation to the objectives of the city’s 20-percent Development Fund could not be readily determined.
As a response to COA's recommendations, Mandaue City is revising the program's guidelines with a focus on prioritizing vulnerable sectors for their upcoming distribution planned for December 2026. The local city council has approved on first reading an ordinance to establish the Gugma sa Pasko Mandaue Food Assistance Program, proposing a budget of P60 million to support an estimated 80,000 qualified beneficiaries.
City administrator Gonzalo Malig-on Jr. acknowledged the necessity of identifying specific sectors that the program must target to effectively serve the community. Previously, the distribution encompassed approximately 100,000 households without any restrictions on beneficiary qualifications. Malig-on emphasized the importance of tailoring the program to meet clearly defined social needs as per COA’s observations.
Mayor Thadeo Jovito Ouano has instructed the city council, represented by councilor Joel Seno, to draft an ordinance that outlines clear eligibility requirements and guidelines for the updated program. The new protocol highlights special populations such as persons with disabilities, senior citizens, solo parents, low-income households, and urban poor residents as priority targets for support.
The City Social Welfare and Development Office will oversee the beneficiary screening and validation process, working in conjunction with various city offices and local barangay leaders. Malig-on mentioned that the number of beneficiaries is expected to drop from last year's total due to the program's revised focus, as some who previously received assistance may not qualify under the new guidelines.
Councilor Joel Seno, who chairs the Committee on Education, stated that this initiative aims to provide targeted Christmas bundles to qualified local residents. The funding allocation of P60 million is contingent on successful validation and procurement processes, along with the availability of funds. Seno described the initiative as a Christmas gift from the mayor to the identified sectors, ensuring that assistance reaches those who need it most without favoritism.
The 2025 Christmas bundles included a collection of ten food items, consisting of fruit cocktails, spaghetti noodles and sauce, sausages, and more. However, Seno clarified that this ordinance covers the implementation for December 2026 only and does not guarantee that the Gugma sa Pasko will become an annual program automatically; the city may review future iterations based on past performance and administration direction.
Malig-on disputed COA's assertions regarding the funding sources, claiming that the expenditure was sourced from the General Fund instead of the 20-percent Development Fund as noted in the audit report. Communication with COA is ongoing to amend what he describes as incorrect information in the report. Despite the raised concerns, Malig-on contended that the program ultimately contributed positively to residents' well-being by allowing households to receive government support directly, citing similar Christmas distribution initiatives in Metro Manila towns as comparable models.