DMW to seek Ombudsman review of dismissed graft raps in P1.4-billion OWWA land deal

ARNELL Ignacio
Photograph courtesy of ARNELL IGNACIO/Facebook page

ARNELL Ignacio
Photograph courtesy of ARNELL IGNACIO/Facebook page

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The Department of Migrant Workers (DMW) will ask the Office of the Ombudsman to revisit its decision dismissing graft and plunder complaints over the Overseas Workers Welfare Administration's (OWWA) controversial P1.4-billion property purchase, arguing that evidence pointing to undue benefit for the seller and financial injury to the government was overlooked.
The Ombudsman earlier ordered the criminal prosecution of former OWWA administrator Arnell Ignacio for usurpation of official functions, but cleared him and other respondents of more serious corruption charges arising from the same transaction.
"We plan to file a Motion for Reconsideration because, in our view, the resolution did not pass upon details that we submitted to the honorable Office of the Ombudsman," Cacdac told reporters on Saturday.
In its 19 June resolution, the Ombudsman found probable cause to charge Ignacio under Article 177 of the Revised Penal Code for allegedly signing the contract to sell, deed of absolute sale and related documents, and authorizing the release of P1.4 billion in OWWA funds without the approval of the agency's Board of Trustees.
The anti-graft body, however, dismissed separate complaints alleging violations of the Anti-Graft and Corrupt Practices Act, malversation of public funds and plunder against Ignacio, other former OWWA officials and private individuals involved in the transaction.
In 2024, OWWA acquired a 1.5-hectare property near Ninoy Aquino International Airport for a planned halfway house for overseas Filipino workers.
The DMW later alleged in its criminal complaints before the Ombudsman in July 2025 that the purchase bypassed the OWWA Board of Trustees, whose approval is required under the agency's charter, and involved an overpriced transaction that depleted workers' welfare funds.
Cacdac said the department would ask the Ombudsman to take a second look at what it considers two central elements of graft: undue advantage granted to the seller and undue injury to the government.
Among the evidence the DMW intends to highlight are two Land Bank checks totaling about P1.4 billion dated 30 Aug. 2024—nearly two weeks before the deed of absolute sale was executed on 12 Sept. 2024.
A receipt presented by the department also showed the seller acknowledged receiving the payment on 11 Sept. , a day before the sale was formally completed.
"There were checks issued to the seller about 12 days before the signing of the deed of absolute sale," Cacdac said, arguing that the timing of the payments conferred an undue advantage on the seller.
The department will also ask the Ombudsman to reexamine the inclusion in the purchase price of 51 condominium units valued at about P97 million.
Although titles to the units had already been transferred to the Republic of the Philippines through OWWA, Cacdac said an inspection conducted by the current administration found that the condominium structures had already been demolished.
"The government paid for condominium units that no longer exist. That is the damage. That is the prejudicial aspect to the government," he said.
The DMW estimates the questioned transaction may have caused government losses of about P198 million after accounting for the value of the missing condominium units.
Cacdac said the department was duty-bound to exhaust all available legal remedies to protect the welfare fund of overseas Filipino workers and ensure accountability in the use of public funds, while respecting the Ombudsman's constitutional independence and whatever final ruling it may issue.
Ignacio has previously denied any wrongdoing, maintaining that the land acquisition complied with applicable laws and government procedures.