Philippines: 52 'ghost condominium units' sold to OWWA as part of ₱1.4-billion 2024 deal

Manila: Details of a controversial property deal, including the reported sale of "ghost condominium units" to the Philippine government entered into by the Overseas Workers Welfare Administration (OWWA) have emerged.

A senior government official pointed to signs of an anomalous transaction.

“There are red flags all over the place,” Department of Migrant Workers (DMW) Secretary Hans Leo Cacdac told local media on Tuesday.

A key red flag: the lack of approval by the OWWA Board for the mega land deal, which has led to the sacking of the agency's administor.

Another "red flag": The questionable payment of ₱36 million property transfer taxes (made by OWWA as the buyer, instead of the seller), and the transfer of 52 non-existent condominium units to the government, according to the secretary.

The ghost condominium units were previously demolished – but still formed part of the deal, Cacdac told local TV channel ANC Headstart.

"Covered in the DAS were 7 land titles and 52 condominium titles, part of the valuation cited by the former administrator (Ignacio)," said Cacdac. "He claims it’s above board as it went through Land Bank (official government depository) valuation."

“Around ₱97 million ($1.75 million) or so was the Land Bank valuation for the 52 condominium units covered in 52 condo title. But those 52 condominium units are not there anymore, they’ve already had been demolished. Despite that fact, those titles, too, were transferred to the Republic of the Philippines,” claimed Cacdac.

Cacdac cited others: The “deed of absolute sale” (DAS) covers a property about 7,000-sqm in size, but involved "misrepresentations".

He did not name of the seller or the seller’s attorney-in-fact.

The DAS, Cacdac pointed out, mentioned that the property was “free of liens and encumbrances”. 

Upon inspection, however, it turned out the part of the property has existing occupants and lessees, said Cacdac.

The deed also stated that part of the property has been “donated”, but it still hit a ₱1.4 billion ($25-million) price tag.

According to Cacdac, while the property has been handed over to the government, the lease payments were still being collected by the seller’s attorney-in-fact, who also received the ₱36 million in transfer taxes from OWWA, covered by an “addendum” to the DAS.

Cacdac described the transaction as a possible “fund diversion”.

"The 52 Condominium Units were a significant part of the property valuation made by the Landbank of the Philippines that formed part of the purchase price paid by the OWWA through the unauthorised and hurried Deed of Absolute Sale (DAS) signed by the former Administrator," DMW said in a statement.

"Further compounding these irregularities are the non-disclosure of such lease contracts in the Deed of Absolute Sale, OWWA's failure to obtain full possession of the property despite full payment of the purchase price, and the former owners' attorney-in-fact's collection of post-sale lease rentals."

DMW also cited the "inexplicable manner in which this attorney-in-fact seems to have been entrusted with two significant amounts of money:

a) Php36 million representing the amount returned by the OWWA, purportedly due to local transfer taxes paid by mistake by the seller; and

b) an estimate of Php1.4 million representing collected rent by the attorney-in-fact of the seller on the leased property already owned by the Republic of the Philippines."

The DMW said in a statement that appropriate administrative and criminal cases will be filed "in due time" against responsible OWWA Officers who participated in the anomalous transactions.

On Friday (May 23), Ignacio insisted that the land acquisition transaction was “legal and aboveboard”.

President Ferdinand Marcos Jr. has since appointed Patricia Yvonne Caunan as the new OWWA chief. 

According to Ignacio, he was “shocked” to hear of the allegations as there were official discussions on the transaction in the Senate and the Department of Budget and Management stretching back to 2018.

To become an OWWA member, an OFW must pay $25, which makes the member eligible to avail of benefits and services. 

Membership is valid for two years, and entitles members to avail of services, regardless of employment contract’s duration or any job changes. 

OWWA services include health insurance, financial assistance, and support for repatriation and “reintegration”.

Members must renew OWWA membership every two years to maintain coverage and benefits.