The Department of Migrant Workers (DMW) said that criminal and administrative cases will be filed against former Overseas Workers Welfare Administration (OWWA) Administrator Arnel Ignacio over a ₱1.4 billion land deal marred by serious procedural violations and questionable transactions.
DMW Secretary Hans Cacdac clarified that Ignacio did not resign from his post but was removed due to loss of trust and confidence, citing at least six major lapses that bypassed OWWA Board approval as mandated under Republic Act 10801 or the OWWA Charter.
“In due time, appropriate administrative and criminal cases will be filed against responsible OWWA officers who participated in the anomalous transactions,” Cacdac said in a statement.
The deal involved the purchase of real estate supposedly for a “Halfway House” for repatriated overseas Filipino workers (OFWs), but Cacdac said the project lacked both Board clearance and feasibility, with cheaper and better options available in the private sector.
The controversy has stirred concern among millions of OFWs and their families, as the transaction involved the OWWA Trust Fund—a dedicated pool of resources built through $25 contributions from employers of both land- and sea-based OFWs. These contributions, alongside investment income, fund programs aimed at supporting the welfare of Filipino migrant workers.
Active and former OWWA member-OFWs, their legal dependents (spouses, children, or parents), and their designated beneficiaries in case of disability or death benefit from the OWWA Fund through the following programs it supports:
- Death and disability benefits of ₱100,000 to ₱200,000 for families of deceased OFWs, plus burial assistance
- Livelihood assistance in loans up to ₱200,000 for individuals or ₱1 million for groups
- Scholarships and training in college aid up to ₱20,000 per year, and skills training grants
- Relief and medical aid for calamities, illnesses, or other crises
- Rebate program for long-time members who haven’t availed of benefits, ranging from ₱941 to over ₱13,000
As of 2025, OWWA’s approved budget stands at ₱3.41 billion, with ₱2.97 billion allotted specifically for its core programs and services. While reports stress that the trust fund remains intact, the alleged irregularities have shaken confidence in how OFW funds are being safeguarded.
Among the key violations cited by the DMW were:
- The unauthorized conversion of ₱2.6 billion in emergency repatriation funds into capital outlay;
- Signing of the Deed of Absolute Sale and a Deed of Donation without Board approval;
- An addendum to reimburse ₱36 million in taxes to the seller—despite OWWA’s tax-exempt status;
- Undisclosed existing lease contracts and third-party collection of rent even after government acquisition;
- Demolition of a building with 52 condominium titles, which formed a significant part of the property’s appraised value;
- Failure to secure full possession of the property post-payment.
Secretary Cacdac also raised red flags over the role of the seller’s attorney-in-fact, who allegedly collected ₱1.4 million in rent and received ₱36 million in supposed tax reimbursements—both outside the bounds of proper procedure.
