Ex-OWWA chief Arnell Ignacio indicted for usurpation of official functions in P1.4-billion land deal

The Philippine Ombudsman has ordered the filing of usurpation of official functions charges against former Overseas Workers Welfare Administration (OWWA) administrator Arnaldo "Arnell" Ignacio over a P1.4-billion property deal that allegedly bypassed the agency's board. Department of Migrant Workers (DMW) Secretary Hans Leo Cacdac confirmed on July 7 that the department received the Ombudsman's June 19 resolution. "The finding of the Ombudsman is to charge the former administrator with usurpation of official functions under Article 177 of the Revised Penal Code," Cacdac said at a press briefing. According to the DMW, the Ombudsman found that Ignacio signed the contract to sell, deed of absolute sale, and addendum, and approved the release of public funds without the required authority from the OWWA Board of Trustees. The resolution stated that Ignacio acted under the pretense of authority from the board, conduct that went beyond administrative noncompliance and constituted a criminal violation under Article 177 of the Revised Penal Code. Ignacio was removed as OWWA administrator in 2025 over loss of trust and confidence in connection with the P1.4-billion land deal. While the Ombudsman directed the filing of a criminal information against Ignacio for usurpation of official functions, it dismissed complaints for plunder, malversation of public funds and violations of the Anti-Graft and Corrupt Practices Act against him, other former OWWA officials and private sellers. Cacdac said the DMW would file a motion for reconsideration, arguing that the Ombudsman resolution overlooked evidence submitted by the department. He said the DMW would ask the Ombudsman to revisit what the department believes were evidence of undue advantage to the seller and damage to the government. To show alleged undue advantage, Cacdac said the transaction was rushed without the required oversight, transparency and approval of the OWWA Board of Trustees. He said two Land Bank checks totaling about P1.4 billion were issued to the seller nearly two weeks before the deed of absolute sale was executed. Records also showed that the seller acknowledged receiving full payment a day before the deed was signed, he added. Cacdac also questioned the inclusion of 51 condominium units valued at about P97 million in the total purchase price. Although the government holds titles for the units, a physical inspection found that the structures had already been demolished and no longer exist, he said. Cacdac said this contributed to an estimated P198 million in overpricing, meaning public funds were spent on non-existent real estate that was originally intended to help house overseas Filipino workers. "The government paid for condominium units that no longer exist. That is the damage. That is the prejudicial aspect of this anomalous transaction," Cacdac said. "The Department is duty-bound to exhaust all available legal remedies to protect public funds, uphold accountability in the use of government resources, and safeguard the welfare funds of our overseas Filipino workers," he added.