​​​​Philippines: OWWA chief sacked over $25-million 'fund misuse', probe underway

Manila: The Department of Migrant Workers (DMW) is investigating a controversial $25-million (₱1.4-billion) land purchase by the Overseas Workers Welfare Administration (OWWA) under former Administrator Arnell Ignacio, who has been sacked over possible misuse of public funds and procedural violations.

"Halfway house"

The land deal, reportedly intended for the construction of a “halfway house” for returning overseas Filipino workers (OFWs), was carried out without the approval of the OWWA Board of Trustees, a senior official said. 

DMW Secretary Hans Leo Cacdac described the transaction as a possible “fund diversion” and said it bypassed proper authorisation processes.

In an interview on Monday, May 19, 2025, Cacdac revealed that the department has been holding multiple meetings with the OWWA Board to address the issue.

'Removal, not resignation'

“We’ve had about four meetings with the OWWA Board of Trustees about this transaction. I’ve also reported to the President, and we know this is a case of removal from office, not resignation,” Cacdac said in Filipino.

He added that further steps are being taken to hold accountable those involved.

“We are still gathering details to file the appropriate case with the appropriate agency or branch of government,” the DMW chief told the Philippine News Agency.

The land acquisition was intended to support OFWs returning during emergencies like the COVID-19 pandemic.

However, Cacdac emphasised that the project lacked the necessary approval from the OWWA Board, which is mandated to oversee both programme and budget authorisations.

The property in question was reportedly intended for a dormitory-type facility or "halfway house" for overseas Filipino workers.

Fund diversion

“The point here is that had the board even been consulted on this main aspect of the proposal, they would have advised against undertaking such a large-scale project, as the private sector already provides accommodations for the many OFWs returning during national or global emergencies,” Cacdac told local media.

The transaction reportedly used funds allocated under the General Appropriations Act for OFW repatriation, but diverted them toward the land purchase — without the board’s consent.

Procedural lapses

“₱1.4 billion was released, but there are other aspects too,” Cacdac added.

He also disclosed that the title of the property was already transferred before the board was made aware of the transaction.
“The title has been transferred. We only found out when the title was already in the name of the Republic of the Philippines.”

The OWWA Board, chaired by Cacdac himself, has reportedly found at least six serious procedural lapses in the implementation of the project, all of which indicate a lack of transparency and oversight.

Details confidential

While the full details remain confidential, Cacdac confirmed that the findings will be made public once the review is complete. 

He also said that a separate committee within OWWA, which bypassed the board, may have facilitated the transaction.

“That’s something we’re looking into now—the possibility that others were involved. Right now we’re still reviewing whether this project will continue.

Arnell Ignacio, a former TV host, resigned from his post in February 2019 reportedly for personal reasons. 

In 2022, Ignacio was appointed by President Bongbong Marcos as the new administrator of OWWA. 

In May, he was dismissed from his position due to “loss of trust and confidence” following his involvement the alleged fund diversion.

Secretary Cacdac clarified that Ignacio did not voluntarily resign but was dismissed due to a “loss of trust and confidence.”

Ignacio was not immediately available for comment, as per the PNA. 

DMW Undersecretary Patricia Yvonne Caunan, who has since taken over as OWWA administrator, confirmed in a media forum that the land deal is under investigation.

Caunan said she has already initiated an audit of the transaction and has coordinated with the Department of Justice for a legal opinion, as well as with the Commission on Audit for further review.