Department of Migrant Workers (DMW) Secretary Hans Leo Cacdac asserted that the land acquisition deal led by former Overseas Workers Welfare Administration (OWWA) Chief Arnell Ignacio was illegal and riddled with irregularities, directly contradicting Ignacio’s claim that the transaction followed due legal process.
Cacdac stated that Ignacio bypassed the required approvals from both DMW officials and the OWWA Board of Trustees, casting serious doubts on the deal’s legality.
He emphasized that, under the law, all transactions and subsequent modifications related to OWWA projects must first be presented and approved by the Board of Trustees, including representatives from the DMW.
The DMW Secretary revealed that the board confirmed the proposal and decision to purchase land were neither discussed nor explained to them.
Furthermore, the department and the trustees discovered several anomalies in the process, including Ignacio’s alleged refunding of billions of pesos involved in the deal.
Original documents showed that OWWA was initially held accountable for the taxes related to the land purchase, but in a revised version of the contract, this obligation was transferred, resulting in an unapproved payment of ₱36 million.
Cacdac noted that this significant change was made without the board’s knowledge or consent.
Currently, the DMW has expanded its investigation, particularly on the tax aspects of the deal, and is coordinating with the Bureau of Internal Revenue (BIR) to determine the type of taxes applied by the selling realty corporation.