OWWA flagged by auditors for P1.4-B land purchase

The Commission on Audit (CoA) has flagged the Overseas Workers Welfare Administration (OWWA) for acquiring P1.42 billion worth of land for a migrant worker facility without prior approval from its Board of Trustees. State auditors, in OWWA’s 2025 annual audit report, cited a significant lapse in internal controls and governance, noting that the acquisition violated Sections 20 and 22(i) of Republic Act No. 10801, or the OWWA Act, which requires board approval for the agency’s acquisition of property. OWWA management had reportedly relied on committee actions and administrative processes instead of formal board authorization for the acquisition of the parcel of land for the OWWA Halfway Home for OFWs (overseas Filipino workers) and Training Center. Auditors stated that this indicates a significant lapse in internal control and governance. State auditors also flagged P910.1 million in unused funds out of OWWA’s P4.57-billion adjusted allotment in 2025. The unused funds were largely traced to unobligated allotments for maintenance and other operating expenses and capital outlays, with use gaps ranging from 51% to 100%. CoA said the failure to use the appropriated funds deprived stakeholders of potential benefits from government resources allocated to OWWA. Auditors also found control weaknesses in several of the agency’s welfare programs. OWWA disbursed P445.7 million under its Alagang OWWA Program despite the absence of a manual of operations, raising compliance and accountability concerns, CoA said. The agency collected just 2.31% of receivables from Philippine recruitment agencies dating from before 2023, which auditors said increased the risk that the government would fail to recover the money. CoA also cited releases under the Tulong PUSO Program to non-government organizations without memoranda of agreement, incomplete documentation under the Balik-Pinas, Balik-Hanapbuhay Program and unliquidated cash advances at OWWA’s central and regional offices. Audit suspensions, disallowances and charges totaling P26.78 million remained unsettled as of December 31, 2025. CoA nevertheless issued an unmodified opinion on OWWA’s consolidated financial statements despite identifying P8.26 million in accounting misstatements involving cash, receivables, inventories and liabilities. OWWA management agreed to carry out the auditors’ recommendations, including requiring prior board approval for major transactions such as property acquisitions and conducting earlier budget reviews to reduce unused funds. — Pexcel John Bacon Source: BusinessWorld Nation