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| Ignacio at his last visit to HK as OWWA chief in April 2025 |
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.
