The Mandaue City Government is investigating a land purchase in Barangay Cambaro after the Commission on Audit (COA) flagged alleged irregularities involving supposed ghost sellers, including property owners who had already died before documents for the sale were executed.
City Legal Office (CLO) head Erwin Rommel Heyrosa confirmed that the City received an audit observation memorandum from COA last week regarding the acquisition of 10 lots in Cambaro intended for the City's housing and relocation programs.
Heyrosa said the CLO is still conducting an investigation, but initial findings in the COA report raised concerns after several listed sellers were found to have died before the execution of the deed of sale. He described the situation as alarming, saying deceased individuals allegedly signed and thumbmarked documents related to the transaction.
There are ghost sellers. These people were already dead, yet they supposedly signed and thumbmarked the documents. How could someone place a thumbmark when they are already dead? That is exactly what we are investigating now, he said.
According to Heyrosa, six deceased individuals were identified in the COA report. He explained that under Philippine law, properties owned by deceased persons cannot be transferred through a direct deed of sale. Instead, the process should involve an extrajudicial settlement of estate with sale, including the payment of estate taxes.
Based on the COA report, that process was not followed. They proceeded directly with the deed of sale, he said.
The City Government paid around P16 million for the property transaction, while another P16 million balance remains unpaid and has been put on hold pending the investigation. Heyrosa said the check payment was issued on June 24, 2025, during the term of former acting mayor Glenn Bercede, six days before his term ended following the suspension of then-mayor Jonas Cortes.
The lawyer added that the property covers an estimated 4,000 to 5,000 square meters. However, aside from the issue involving deceased sellers, the City also discovered other concerns regarding the property itself. Heyrosa said residents in the area claimed the property has no right of way and that portions of the land are muddy, making it unsuitable for the City's intended housing projects.
Mutual Restitution
The CLO is coordinating with COA while gathering additional records and documents to determine how the transaction was approved and who may be held liable. We want to determine why something like this happened and identify the personalities involved, Heyrosa said.
He said the City's priority is to protect public funds and the interests of Mandaue residents. If we can recover the city's money, then that is what we will pursue, he said.
Heyrosa said the City is considering filing criminal charges, including forgery and falsification of documents, depending on the outcome of the investigation. However, he said the City is also open to pursuing mutual restitution, in which the property would be returned to the sellers while the City Government recovers the money it paid.
If possible, we want mutual restitution. They return the payment, and the property will also be returned to them because this transaction is prejudicial to the interests of the city, he explained.
He said government buyers have a responsibility to verify ownership before entering into land transactions. If you are buying property, you must ensure that the people selling it are truly the owners. If the city purchased land from people who were not the rightful owners, then something is clearly wrong, Heyrosa said.
The investigation remains ongoing as city officials continue reviewing documents and coordinating with COA regarding the questioned transaction.
