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Ignacio at his last visit to HK as OWWA chief in April 2025
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The Office of the
Ombudsman has indicted former Overseas Workers Welfare Administration
Administrator Arnaldo “Arnell” Ignaco of usurpation of official functions in
connection with the allegedly unauthorized purchase of a Php1.4-billion
property using the OWWA trust fund.
However, in a
resolution dated June 19, 2026 the Ombudsman dismissed the more serious allegations
of violation of the Anti-Graft and Corrupt Practices Act, malversation of
public funds and plunder, made by the Department of Migrant Workers against
Ignacio and the property’s seller.
DMW Secretary Hans Leo
J. Cacdac said they received a copy of the Ombudsman’s Resolution only last
July 7, and will file a Motion for Reconsideration of the dismissal of the corrupt and
plunder complaints against Ignacio and the seller.
“What we plan to do is
to file a Motion for Reconsideration because, in our view, the Resolution did
not pass upon details that we submitted to the honorable Office of the
Ombudsman,” Secretary Cacdac said.
He said those details
included evidence that showed Ignacio overpaid the seller by Php198 million, because it included the price of 51 condominium units that were supposed to exist on
the property but could not be found when OWWA conducted an ocular inspection.
Cacdac also said the
two cheques used to pay for the property were issued and paid to the seller even
before the deed of sale was completed.
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| We have duty to safeguard public funds, says Secretary Cacdac |
The complaint against
Ignacio stemmed from his alleged purchase of a P1.4 billion worth of property adjacent
to the Ninoy Aquino International Airport on Sept. 12, 2024, ostensibly to be
used for building transient lodgings for overseas Filipino workers, using the
OWWA Trust Fund.
The Ombudsman found
that the former administrator signed the contract to sell, deed of absolute sale,
and its addendum, and subsequently approved the disbursement of the OWWA trust
fund, without authority from the Board of Trustees.
The Resolution said
Ignacio acted under the pretense of authority from the OWWA Board of Trustees,
despite knowing he had no such authority, in violation of the law on Usurpation
of Official Functions under Article 177 of the Revised Penal Code.
Secretary Cacdac said
that this criminal offence carries a penalty of six months to four years of
imprisonment.
This is far less
severe than the sentence of reclusion perpetua or life imprisonment and
perpetual disqualification from public office prescribed for the crime of
plunder under Republic Act No. 7080. This law provides that plunder is
committed by any public officer (and his cohorts even if they are private
citizens) who amasses or acquires at least Php50 million in ill-gotten wealth.
Cacdac said that in the
Motion for Reconsideration, the DMW will reiterate the two important elements
of plunder that may have been overlooked by the Ombudsman: the alleged undue
advantage given to the seller and the damage or prejudice to the government.
He said the seller
gained advantage because the institutional oversight, transparency and scrutiny
by the Board of Trustees was bypassed. Second, the two checks covering the Php1.4
billion payment for the property were issued on Aug. 30, 2024 when the deed of
absolute sale was signed only on Sept. 12, 2024.
“There were checks
issued to the seller about 12 days or almost two weeks before the signing of the
absolute deed of sale,” Cacdac said.
The DMW also presented a receipt showing that the seller acknowledged receiving the
payment on September 11, 2024, a day before the deed of sale was signed.
“Natanggap na ng seller yung bayad bago pa nagpirmahan ng deed of sale.
We wish for the honorable Office of the Ombudsman to take a second look at this
item,” Secretary Cacdac said.
As to the second
element of prejudice to the government, Cacdac said this was clear in the
inclusion of 51 condominium units valued at about Php97 million that were
included in the Php1.4 billion purchase price, but had apparently been
demolished.
“The point here is the
government paid for condominium units that no longer exist. That is the damage.
That is the prejudicial part to the government,” Secretary Cacdac said.
Because of the
inclusion of the non-existent condominium units, the property was overpriced by Php198 million, he said.
Secretary Cacdac said
he is duty-bound to file the motion because the DMW has the responsibility of
protecting public funds and ensure accountability.
“This is nothing
personal to the parties,” he said.
