A June 24 cash-assistance payout in Canlaon City has drawn scrutiny after Negros Oriental Governor Manuel “Chaco” Sagarbarria attended the event and was publicly credited for it — despite a clear legal prohibition under the 2026 national budget law barring elected officials from being present at government aid distributions.

Official Social Media Posts Place Governor at the Event

The Canlaon City government’s official Facebook page documented the payout, which served 2,000 beneficiaries under the national government’s Assistance to Individuals in Crisis Situation (AICS) program. According to those posts, distributions took place at the Panubigan and Binalbagan covered courts.

The city government described the assistance as national funds “coursed through the Office of Governor Manuel ‘Chaco’ Sagarbarria,” with additional support from Mayor Jose Chubasco “Batchuk” Cardenas and the City Council. A second post noted that the governor “again attended to personally meet the beneficiaries and show his support.” Photos published by the city government show him speaking before the crowd and posing alongside recipients.

The 2026 General Appropriations Act’s Anti-Epal Provision

The attendance runs directly against Section 19 of Republic Act No. 12314 — the 2026 General Appropriations Act signed by President Ferdinand Marcos Jr. in January. The provision mandates that cash assistance and other financial aid “shall be conducted exclusively by authorized government officers and personnel or accredited partners.”

Under the statute, elective public officials, candidates, politicians, political parties, and their representatives are expressly barred from influencing, attending, participating in, or taking any part in actual aid distributions. The law makes clear that mere physical presence at a distribution event is already a violation — an official does not need to personally hand over cash or vouchers to be in breach.

The provision covers the Protective Services for Individuals and Families in Difficult Circumstances — the program that funds AICS — as well as TUPAD and the medical-assistance program MAIFIP. Political signage, branding, and any form of campaign-related activity within distribution areas are likewise prohibited under the same section.

AICS is administered by the Department of Social Welfare and Development (DSWD). Because a provincial governor holds no direct administrative or executive authority over the DSWD, the governor does not fall within the statute’s narrow exception reserved for agency officials who directly oversee the implementing body. Routing national assistance “through the Office of the Governor” is precisely the type of patronage arrangement the anti-epal clause was designed to dismantle.

Marcos and Gatchalian Both Cited Patronage at Law’s Signing

When RA 12314 was signed into law, President Marcos stated that politicians “shall be barred from the distribution of any financial aid” so that government support reaches beneficiaries “without patronage.”

DSWD Secretary Rex Gatchalian has said the agency intends to enforce the provision proactively. According to Gatchalian, paymasters and social workers are directed not to proceed with a payout if politicians are present, and distributions may be stopped outright should political figures appear on-site. The DSWD has also been finalizing omnibus AICS guidelines that incorporate “no-epal” rules drawn from an earlier joint memorandum circular, which bans politicians from payout activities and prohibits the distribution of leaflets or campaign materials at distribution venues.

DILG Warns of Suspension and Ombudsman Referral for Violations

Beyond the budget law, DILG Memorandum Circular No. 2026-006 — issued on January 29 by Interior Secretary Jonvic Remulla — separately orders the removal of government officials’ names, photographs, and identifying symbols from government-funded projects and activities. Secretary Remulla has publicly warned that violators face administrative sanctions including suspension, and that repeat offenders among local chief executives may be referred to the Ombudsman for both administrative and criminal cases.

Who the Canlaon City Beneficiaries Are

According to the Canlaon City government, the 2,000 individuals who received assistance on June 24 included evacuees verified by the National Housing Authority, farmers listed under the Department of Agriculture’s Registry System for Basic Sectors in Agriculture (RSBSA), dialysis patients, and residents who lost motorcycles or vehicles due to Typhoon Tino.

The city government reported that Typhoon Tino killed at least 16 people in Canlaon and placed the city under a state of calamity in November 2025. The community had already been struggling with prolonged displacement stemming from the 2024 eruption of Kanlaon Volcano, meaning many of the payout’s recipients have faced back-to-back crises over the past two years.

Remulla Acknowledges Enforcement Remains Incomplete

The Canlaon City incident underscores the continuing gap between what the law prescribes and what is happening on the ground. Secretary Remulla has himself acknowledged that there is “no codified conduct yet” governing the anti-epal campaign, and he has called on Congress to pass dedicated legislation that would criminalize the practice outright.

A bill seeking to formally institutionalize AICS — whose Senate version includes an explicit clause barring politicians from distributions — stalled in June after the House of Representatives resisted that particular provision. The measure was referred to a bicameral conference committee, with a resolution expected following the President’s July State of the Nation Address.

As of the time of publication, neither the Office of Governor Sagarbarria, the DSWD regional office, nor the DILG had released any statement addressing the governor’s attendance at the June 24 event in Canlaon City.

Photo credit: Canlaon City Government / Facebook

Originally reported by: breakingnewsnegrosoriental.com

Bryce Angeles
Written by

Reporter at Breaking News Negros Oriental covering local and regional news.

View all posts →