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Filipino Times
27-05-2025
- Business
- Filipino Times
DMW chief confirms removal of former OWWA administrator over unauthorized ₱1.4B land deal
Department of Migrant Workers (DMW) Secretary Hans Leo J. Cacdac confirmed the removal of former Overseas Workers Welfare Administration (OWWA) Administrator Arnell Ignacio, citing loss of trust and confidence over an alleged unauthorized ₱1.4 billion land acquisition deal. In an official statement, Secretary Cacdac clarified that Ignacio did not resign, but was removed from office due to serious procedural and substantive lapses related to the purchase of real property without the required approval of the OWWA Board of Trustees. Among the issues raised was the proposal to construct a halfway house for returning overseas Filipino workers (OFWs), which the Board could have advised against for being impractical and cost-inefficient, given that the private sector could offer more suitable accommodations. The conversion of ₱2.6 billion in emergency repatriation funds into capital outlay was also flagged, as such a move required Board approval under the OWWA Charter. Secretary Cacdac also cited the unauthorized signing of the Deed of Absolute Sale and a Deed of Donation involving the real property, both of which should have been approved by the Board. He questioned the execution of an addendum to the Deed of Absolute Sale to reimburse the seller for taxes, even though OWWA is exempt from such payments. The assumption of undisclosed lease contracts on the property, along with the collection of rental payments by a third party unaffiliated with OWWA, further complicated the transaction. Cacdac also revealed that a building covered by 52 condominium titles—previously included in the property's valuation—had been demolished without Board consent. Further compounding the irregularities, Cacdac said, was the failure of OWWA to gain full possession of the property despite full payment. He noted that the seller's attorney-in-fact had continued collecting lease payments after the sale, and had been entrusted with ₱36 million allegedly reimbursed for transfer taxes, and around ₱1.4 million in rental income—both highly questionable actions considering the property already belonged to the Republic of the Philippines. Cacdac assured the public that appropriate administrative and criminal cases will be filed against OWWA officers responsible for the anomalous transactions. The revelation comes as the agency, under new leadership, has pledged to strengthen public service with transparency, unity, and integrity.
GMA Network
24-05-2025
- Business
- GMA Network
DMW insists OWWA land deal 'anomalous'
The Department of Migrant Workers (DMW) has refuted former Overseas Workers Welfare Administration (OWWA) chief Arnell Ignacio's claim that the P1.4-billion land acquisition deal went through proper legal channels. Migrant Workers Secretary Hans Cacdac, along with other DMW officials, said that critical steps—most notably, obtaining approval from the OWWA Board of Trustees—were entirely bypassed. According to Cacdac, under established law, any transaction and subsequent modifications involving OWWA properties must be presented to and approved by the Board of Trustees—which includes DMW representatives. However, the decision to purchase the property and alter key provisions in the Deed of Absolute Sale was never disclosed to the board. 'What we observed was an anomalous process. The money, which was refunded following our intervention, should have been produced as proof immediately,' Cacdac stated during an interview with GMA Integrated News. DMW officials detailed that in September 2024, Ignacio amended the deed to shift the responsibility for the local transfer tax. The original document clearly held OWWA accountable for the tax, but a later version redirected this obligation to involve a P36 million payment—a significant change that was made without notifying the board. The investigation uncovered that Ignacio failed to disclose the presence of a leasing tenant occupying the property. The board later discovered that OWWA had, in effect, assumed the role of 'landlord' without formal approval. In a pointed exchange, Cacdac questioned Ignacio's account of the transaction. 'I asked, 'Where is the rent?' and learned that it was still being collected by the previous landowner—someone who, without board approval, was authorized to act as a private rent collector for an amount reportedly around P1.4 million,' Cacdac explained. He added that such practices run counter to standard procedures and exacerbate concerns over financial transparency. Ignacio had earlier defended his actions by insisting that all transactions were reported to the board and that the property's valuation was properly assessed by the Land Bank of the Philippines—the designated government financial institution. 'It is the LandBank that determined the value, and the amount paid by OWWA reflects that assessment,' Ignacio said. However, Cacdac argued that the LandBank's reliance on the Right of Way Law was misplaced. 'That law is not applicable to this purchase, especially when there's no approved national infrastructure project and no board sanction to invoke it,' he said. DMW officials have already expanded their inquiry to the tax aspects of the deal. They are currently consulting with the Bureau of Internal Revenue (BIR) to determine whether the proper tax—possibly value-added tax rather than capital gains tax—was applied, given that the seller is a realty corporation. As the investigation continues, DMW remains committed to demanding full transparency and adherence to protocol in all transactions involving public funds. — VBL, GMA Integrated News
