Cacdac 
NATION

DMW to file charges over P1.4B OWWA land deal

Kimberly Anne Ojeda

Department of Migrant Workers (DMW) confirmed that administrative and criminal cases will be filed against Overseas Workers Welfare Administration (OWWA) officers involved in the alleged P1.4 billion anomalous land deal. 

According to DMW Secretary Hans Cacdac on Monday, cases will be filed "in due time."

Cacdac also refuted former OWWA Administrator Arnell Ignacio’s claim that the deal was presented to the Board of Trustees since 2018. 

"What he said was that it was presented to the board, but he didn’t say when. He presented it to the Board of Trustees of OWWA after the sale had already been made by him; he signed the deed of sale without the authorization of the OWWA Board of Trustees, which is required by law, and he didn’t say it wasn’t approved — the word he used was 'presented'," Cacdac said.

"There was no approval, and the sale had already happened when it took place. In other words, the transaction was done secretly,” he added. 

Cacdac also detailed six procedural and substantive lapses not presented to the board of trustees surrounding the P1.4-billion acquisition deal of the OWWA supposedly intended for a halfway house for overseas Filipino workers (OFWs).


The statement underscored the Board could have advised former OWWA Administrator Arnell Ignacio on the "impracticality and cost efficiency" of constructing the said facility in pursuant to Section 22(c) of the Republic Act No. 10801 or the OWWA Charter. Cacdac pointed out that the private sector establishments could "very well provide more decent and professionalized accommodation services.” 

“Because it’s in his [Ignacio’s] concept paper, prompted by the pandemic, where over a million underwent hotel quarantine. OWWA cannot operate such a large halfway house or hotel. Leave it to the private sector that has the expertise,” Cacdac said in an interview.

The DMW Secretary also cited that P2.6 billion in emergency repatriation funds were converted into capital outlay even though OWWA’s budget, sourced from the trust fund and the national government, must be approved by the Board under Section 22(e) of the Charter. 

It further revealed that the Deed of Absolute Sale and a Deed of Donation for the property were signed without proper board authority. 

The deed of sale dated September 2024 includes an attached deed of donation, as the landowner also donated a small parcel of land. Both documents should have gone through the OWWA Board of Trustees for review.

“They need to examine whether the contents of the deed of sale are correct. Is the tax imposed appropriate? That’s an issue, by the way,” the official said.

“Because capital gains tax was used — six percent. But it seems a different tax, like VAT, should have been applied. So that’s still under review; we asked for a recommendation or opinion from the BIR.”

An addendum to the sale stipulating the reimbursement of local taxes to the seller was also executed despite OWWA’s tax-exempt status under Section 56 of the Charter. He also pointed out existing lease contracts not disclosed in the sale. A third party non-OWWA employee was reportedly collecting lease payments from tenants.

In addition, 52 condominium units were included in the valuation conducted by Landbank and factored into the purchase price. 

Cacdac stressed that OWWA never secured full control of the property even after completing payment. The seller’s attorney-in-fact reportedly continued to collect lease payments post-sale and held in trust P36 million refunded by OWWA for local transfer taxes, as well as an additional P1.4 million in rent collected from tenants.