Department of Migrant Workers (DMW) Secretary Hans Cacdac on Monday outlined six major procedural lapses in the Overseas Workers Welfare Administration’s (OWWA) P1.4-billion property deal — an acquisition supposedly meant for a halfway house for overseas Filipino workers (OFWs).
Cacdac maintained the issues were never brought before the OWWA Board of Trustees, which could have advised then-Administrator Arnell Ignacio against the deal due to cost and practicality concerns.
Ignacio claimed the land deal had been presented to the OWWA board.
However, according to Cacdac, Ignacio only informed the board after the transaction had already been uncovered — by which time key changes had been made to the deed.
One significant amendment shifted the responsibility for the P36-million local transfer tax from the seller to OWWA.
The original deed indicated that the seller would shoulder the tax. But a month later, Ignacio allegedly revised the document, making OWWA liable for the payment — even though the agency is exempt from such taxes.
Under Section 22(c) of the OWWA Charter (Republic Act 10801), the board should have reviewed the project.
Cacdac noted that private-sector establishments could have provided better and more professional accommodations for OFWs at a lower cost.
He also flagged the reallocation of P2.6 billion in emergency repatriation funds into capital outlay — without board approval, as required under Section 22(e).
Among other irregularities, the Deed of Absolute Sale and a Deed of Donation were signed without proper authority from the board.
An addendum to the sale was signed, committing OWWA to reimburse local taxes — even though the agency is tax-exempt under Section 56 of its charter.
The property had existing lease contracts that were not disclosed during the sale. A non-OWWA third party was reportedly collecting rent from tenants.
Fifty-two condominium units were included in the purchase price via what Cacdac called an “unauthorized and hurried” sale.
He further revealed that the building — titled under the Republic of the Philippines — was demolished without the required board review.
Even more troubling, Cacdac said OWWA never gained full possession of the property.
The seller’s attorney-in-fact reportedly continued collecting rent and received P36 million in refunded local taxes and P1.4 million in rent from tenants after the sale.
“These actions all required review and approval from the board,” Cacdac stressed, citing multiple violations of Sections 22(c) and (i) of the OWWA Charter.
