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.

DMW Secretary Hans Cacdac and other OWWA Board members said that Ignacio signed the Deed of Absolute Sale in September 2024 without prior approval from the Board—a violation of Section 22 of the OWWA Charter.

Ignacio has said that the land deal had been presented to the OWWA board.

But according to Cacdac, Ignacio only informed the Board after the transaction was discovered, including amendments made to the deed. One key change involved shifting the responsibility for the ?36-million local transfer tax from the seller to OWWA.

Originally, the deed stated the seller would pay the tax. But a month later, Ignacio allegedly amended the document, making OWWA liable for the payment—despite the agency being exempt from such taxes.

“Sabi namin, anomalya yan, dapat i-produce yung ibalik yung pera na yan at agad naman binalik,” said Cacdac. 

(We said, that’s anomalous, the money should be returned—and it was, but only after we called their attention to it.)

This revelation came after a white paper was submitted anonymously by OWWA employees to the Office of the President and the DMW Secretary, raising concerns about the ?36-million tax payment.

The Board also discovered that Ignacio failed to disclose another transaction: the purchased land already had tenants. OWWA, now the legal owner, unknowingly became a landlord. The rent collector, it turns out, was the same attorney-in-fact of the seller who also received the ?36 million tax refund.

“Sabi ko, bakit yung dating may-ari ng lupa, yung attorney, in fact, in-authorize niya mag-collect ng rent?” said Cacdac.

(“I asked, why was the former landowner’s attorney-in-fact authorized to collect rent?”)

Ignacio claimed that LandBank determined the land’s value, which OWWA followed. But Cacdac argued that the justification used—citing the Right of Way Law—was inappropriate and not approved by the Board.

“So, may question mark yung process na yun at mukhang hindi pinaalam sa LandBank,” he said.

(“So, there’s a question mark on that process, and it seems LandBank wasn’t informed.”)

Another issue under investigation is the demolition of 52 condominium units on the property, which was not disclosed to the Board and may also violate the OWWA Charter.

Ignacio, who has been removed from his position, has denied all allegations of personal gain.

“Nakakasakit ng dibdib napakaraming alegasyon sakin. Saan nanggaling? Sa isang papel na walang nakapirma,” he said.

(“It’s heartbreaking—so many allegations against me. Where did they come from? From an unsigned piece of paper.”)

The DMW and OWWA Board are now coordinating with the Bureau of Internal Revenue (BIR) to review the tax implications of the transaction. 

Questions remain over whether capital gains tax or value-added tax should have applied, given that the seller was a realty corporation.

“We’re seeking an opinion from the BIR… whether what should have been used is the value-added tax.”

Cacdac confirmed that the fact-finding investigation is nearing completion, and appropriate complaints will be filed with the relevant government agencies.

As of this writing, Ignacio has not issued a new statement in response to the latest revelations. — VBL/KG/BM, GMA Integrated News