Philippines: Criminal, administrative charges set in ₱1.4b OWWA land deal involving ‘ghost' condo units

Manila: The Department of Migrant Workers (DMW) is preparing criminal and administrative charges against concerned officials of the Overseas Workers Welfare Administration (OWWA), including its former administrator Arnell Ignacio. 

The case involves a controversial ₱1.4-billion ($25.08 million) land acquisition. 

It allegedly includes the purchase of 52 condominium units that do not exist.

DMW Secretary Hans Leo Cacdac disclosed that the charges will be filed against those involved in the questionable transaction "in due time".

Ignacio reportedly authorised the purchase of a 7,000-sqm property near the Ninoy Aquino International Airport (NAIA) in September 2024 without securing approval from the OWWA Board, violating Section 22 of the agency’s charter. 

The deal was funded by “diverting” ₱2.6 billion from OWWA’s "emergency repatriation" funds, earmarked for assisting overseas Filipino workers (OFWs) during crises, according to Cacdac.

Claire Castro, press officer of the presidential palace, also confirmed that a letter of complaint against Ignacio was sent to Malacañang.

A significant portion of the deal — approximately ₱97 million — was attributed to 52 non-existent condominium units, according to Cacdac.

Despite their absence, these "ghost units" were included in the Deed of Absolute Sale and transferred to the government.

“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 – ₱36 million representing the amount returned by the OWWA (purportedly due to local transfer taxes paid by mistake by the seller), and an estimated ₱1.4 million rental income collected by the seller’s attorney-in-fact on the leased property already owned by the government.

Cacdad did not name either the seller or the attorney-in-fact. It's not immediately whether other officials, past or present, would be included in the charge sheet.

Ignacio has denied any wrongdoing.

He asserted that the transaction was conducted transparently, and for the "love" and benefit of OFWs. 

He claimed that the OWWA Board was informed of the deal.

Cacdac maintains that the board was only made aware after the transaction had been completed. 

Speaking to local media earlier, Ignacio denied any irregularities in the ₱1.4 billion land deal that led to his sacking.

“But let me tell you, to the OFWs I have been serving, hindi ko kayo pinagtaksilan. Ginawa ko lang ito para sa inyong pagmamahal at wala po akong kinita dito,” Ignacio said at the news conference where he spoke at length but did not take any question. ("But let me tell you, the OFWs I have been serving, I did not betray you. I just did this because of my love for you, and I did not make money from it").

He also made a vague reference about reporting to the OWWA Board about the land deal but stopped short of saying he had obtained its approval. 

He merely asserted that the negotiations over the land purchase had been going on “for some time”, with the Board’s full knowledge.

The DMW has coordinated with the Bureau of Internal Revenue to assess potential tax violations and is finalising its fact-finding investigation.

Once concluded, the department plans to file the appropriate complaints with relevant government agencies. 

In the interim, Patricia Yvonne Caunan has been appointed as the new OWWA administrator, with a mandate to restore transparency and integrity within the agency.

The case underscores the critical importance of stringent oversight in the management of public funds, particularly those designated for the welfare of OFWs.