Malacañang on Monday confirmed that investigations are underway into a controversial P1.4-billion land acquisition deal by the Overseas Workers Welfare Administration (OWWA) during the term of former administrator Arnell Ignacio.

Press Officer Claire Castro said authorities are examining the potential involvement of other officials in the transaction. She clarified that initial findings indicate the OWWA trust fund remains intact.

“In the initial investigation, the OWWA trust fund has not been affected. The probe is ongoing to determine if any portion of the fund was used, but as of now, none has been found,” Castro said.

The OWWA fund consists of contributions from overseas Filipino workers (OFWs) and is legally designated for their welfare and that of their families. Republic Act 10801 prohibits the use of these funds for other government agencies’ expenses.

To recall, Department of Migrant Workers (DMW) Secretary Hans Leo Cacdac said in a televised interview that the department discovered the issue when the land title was transferred to the Republic of the Philippines.

He cited that at least six aspects of the transaction were not consulted with the OWWA Board of Trustees.

“There are at least six aspects of this transaction that were not consulted with the OWWA Board of Trustees. We will disclose them at the appropriate time,” Cacdac said, adding that a committee within OWWA was formed instead of consulting the board.

“This is what we are examining, who is involved in the decision not to consult the board and proceed with the transaction.”

The controversy centers on a 1.5-hectare property near Ninoy Aquino International Airport Terminal 1, intended for dormitory-style housing for OFWs.

A letter of complaint from “Concerned OWWA Employees,” dated 31 March and verified by Malacañang on Sunday, accused Ignacio and Deputy Administrator for OWWA’s Administration and Fund Management Emma Sinclair of manipulating government processes to push through the land acquisition in September 2024.

The complainants alleged the property was subject to Value-Added Tax (VAT), but Ignacio, Sinclair, and others conspired to falsify records at the Bureau of Internal Revenue and the Registry of Deeds to make the transaction appear subject to Capital Gains Tax, allegedly to reduce the tax obligation to P84 million and misappropriate the difference.

“The lawyers of OWWA and the lawyers of the seller knew that the correct tax to be paid for this land transaction was VAT and not Capital Gains Tax. However, Sinclair, Ignacio, and Medina, together with the lawyers of OWWA and the seller, agreed to fix things with the BIR and the RD and make it appear that Capital Gains Tax was the applicable payment, so they could split the P84 million taken from government funds,” the employees stated in their letter.

The employees also claimed irregularities involving a broker’s fee and missing rental income.

Ignacio was recently replaced as OWWA administrator by Patricia Yvonne Caunan, former DMW undersecretary for Foreign Policy and International Cooperation.