Mandaue City Cancels P32-Million Housing Land Deal Over Dead Signatories
The Mandaue City Government is moving to cancel a P32-million land deal intended for low-income housing after a legal review uncovered that six of the landowners who supposedly signed the sales documents were already deceased at the time of the transaction.
In addition to the legal issues, officials revealed that the chosen property lacks a proper right of way and poses serious flooding risks for the surrounding neighborhood.
The Cambaro Land Deal Investigation
The deal involved the purchase of 10 parcels of land in Barangay Cambaro in June 2025 under the previous administration. Mandaue City has already paid a 50 percent down payment of P16 million. However, major legal problems discovered during a review have cast doubt on the entire transaction, making it difficult for the city to legally transfer the property titles.
City Administrator Gonzalo “Sally” Malig-on shared that these findings came from an initial report by the City Legal Office on June 2, 2026. The report strongly recommends a deeper investigation and possible lawsuits against those who facilitated the deal.
“I have a copy of the City Legal report dated June 2, 2026, and I reviewed it this morning. These are only initial findings, but the report recommends a deeper investigation into the offices involved in the transaction. There is also a recommendation to file cases once the case build-up is completed,” Malig-on said.
According to official records, six of the landowners whose signatures appeared on the paperwork had passed away before the sale took place. Remarkably, one of them died over twenty years ago.
“The problem is that around six of the owners who supposedly signed the documents were already deceased,” Malig-on explained. “Some records even show that one of them died as early as 2004. It would be difficult to explain how these signatures appeared in the transaction.”
The City Legal Office also found issues with the Special Powers of Attorney documents. Some of these papers lacked witnesses, while others were missing required identification documents even though they had been notarized.
“There were documents that were not properly executed. Some had no witnesses, while others lacked identification cards despite having been notarized,” Malig-on said. “These are badges of irregularity.”
Risks of Building on the Site
Beyond the problematic paperwork, city officials discovered that the land itself is not suitable for a housing project. A recent assessment showed the area has no proper right of way. Additionally, building a housing project there could cause severe flooding in nearby areas because Barangay Cambaro is already densely populated.
“We have also received feedback that if socialized housing is developed there, it could worsen flooding in surrounding areas because Cambaro is already densely populated. On the surface, it does not appear to be a wise purchase, aside from the alleged irregularities,” Malig-on said.
Recovering Taxpayer Money
City Hall officials are now exploring ways to recover the public funds and hold the responsible individuals accountable.
“The City has already suffered damage because P16 million has already been paid,” Malig-on said. “When you look at the documents, you see the Deed of Sale and the Memorandum of Agreement, but the bigger question is: Who were the people behind this? Who pushed this transaction?”
To recover the money, the city is considering a legal option called “mutual restitution,” which was previously suggested by the Commission on Audit. This would cancel the contract and require the other party to return the P16 million down payment.
“Mutual restitution means cancelling the transaction and requiring them to return the money,” Malig-on explained. “There may also be administrative cases against government officials involved and criminal cases against those who facilitated the transaction.”
What Happens Next?
The City Legal Office has recommended a thorough investigation to identify everyone who participated in or facilitated the deal. Mayor Thadeo Jovito “Jonkie” Ouano will make the final decision on whether to officially terminate the contract and file administrative, civil, or criminal charges against those responsible. While the investigation proceeds, city officials will look for safer, alternative locations for the housing program while working to recover the taxpayers' P16 million.
