OWWA Faces Scrutiny Over P1.4 Billion Anomalous Land Acquisition
The Department of Migrant Workers (DMW) has vowed to take decisive action regarding the P1.4 billion anomalous land acquisition deal linked to the Overseas Workers Welfare Administration (OWWA). According to sources familiar with the matter, DMW Secretary Hans Leo Cacdac is determined to file administrative and criminal charges against those responsible for the irregularities that led to the removal of Arnell Ignacio as OWWA administrator.
The key issue revolves around the OWWA’s failure to secure full possession of the property despite having fully paid the purchase price. Transparency concerns also emerged because several agreements and contracts were not properly disclosed to the OWWA Board of Trustees, which Cacdac chairs.
“In due time, appropriate administrative and criminal cases will be filed against responsible OWWA officers who participated in the anomalous transactions,” Cacdac stated.
Details of the Controversial Land Acquisition
Contrary to earlier reports suggesting a resignation, it was clarified that Ignacio was removed due to a loss of trust and confidence. This decision stemmed from significant procedural and substantive failures tied to the questionable P1.4 billion land deal, which lacked the necessary approval from the OWWA Board of Trustees.
The deal aimed to develop a Halfway House to accommodate a large number of returning Overseas Filipino Workers (OFWs), inspired by the mass repatriation and quarantine efforts during the pandemic. Included in the property were 52 condominium units, which contributed to the valuation by Landbank of the Philippines and justified the high selling price.
However, these condo units are set to be demolished once the Halfway House is built, meaning the government essentially purchased units destined for destruction. This raised further questions about the transparency and prudence of the transaction.
Issues Surrounding Lease Agreements and Rental Collections
One significant transparency concern involves a lease agreement between the tenants of the condo units and the property’s seller. Although the lease will continue to be honored, rental collections will no longer be managed by OWWA personnel. This change has added to the confusion surrounding the handling of the property.
Concerns Over Fund Reallocation and Contractual Oversights
Cacdac also criticized the OWWA’s decision to convert P2.6 billion in emergency repatriation funds into capital outlay funds without the approval of the Board of Trustees. This move was deemed improper and part of the procedural lapses linked to the land acquisition.
Furthermore, proper protocols were overlooked during the signing of critical documents, such as the Deed of Absolute Sale for the P1.4 billion property, a Deed of Donation covering a portion of the land, and an Addendum relating to tax reimbursements to the seller. These documents are essential and should not have been disregarded.
Next Steps and Accountability Measures
Local experts suggest that the ongoing investigation will likely lead to formal charges against involved officials. They emphasize the importance of transparency and adherence to governance protocols to restore trust in agencies managing OFWs’ welfare.
The DMW’s firm stance signals a commitment to safeguarding public funds and ensuring accountability in government transactions, especially those affecting the welfare of Filipino migrant workers.
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