The Office of the Ombudsman has indicted former Overseas Workers Welfare Administration (OWWA) administrator Arnaldo “Arnell” Ignacio for usurpation of official functions in connection with the agency's controversial P1.4-billion property acquisition.
In a statement on Saturday, July 11, 2026, Department of Migrant Workers (DMW) Secretary Hans Leo Cacdac said that in the Ombudsman's ruling dated June 19, which was received by the department only on July 7, 2026, Ignacio was found to have signed the contract to sell, deed of absolute sale, its addendum, and approved the release of public funds for the acquisition of the property without the required authority from the OWWA Board of Trustees.
Ombudsman recommends criminal charges
The Ombudsman has recommended the filing of charges against Ignacio for Usurpation of Official Functions under Article 177 of the Revised Penal Code before a proper court. The Ombudsman noted that Ignacio acted under the pretense of having authority from the OWWA Board despite knowing that no such authorization had been granted. The resolution stated that the act went beyond a mere administrative lapse and constituted usurpation of official functions.
It further ruled that the absence of board approval was not simply a technical omission but a bypass of the institutional oversight and transparency required under the OWWA Charter. If convicted, usurpation of official functions carries a penalty ranging from six months to four years' imprisonment, subject to the court's determination.
Graft, malversation, plunder charges dismissed
While the Ombudsman ordered criminal charges for usurpation of official functions, it dismissed separate complaints alleging violations of the Anti-Graft and Corrupt Practices Act, malversation of public funds, and plunder against Ignacio, other former OWWA officials, and private sellers involved in the transaction.
“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,” Cacdac said.
DMW to file motion for reconsideration
The department said it would ask the Ombudsman to revisit evidence that it believes establishes two essential elements of graft which are undue advantage to the seller and undue injury to the government. According to the DMW, the transaction proceeded without the approval and scrutiny of the OWWA Board of Trustees, which the department argues gave the seller an undue advantage.
Cacdac said they also presented two Land Bank checks totaling approximately P1.4 billion, both dated August 30, 2024. He noted that the deed of absolute sale was signed only on September 12, 2024, while a receipt indicated that the seller acknowledged payment on September 11, 2024, a day before the deed was executed.
“There were checks issued to the seller about 12 or almost two weeks before the signing of the absolute deed of sale,” Cacdac said.
Missing condominium units questioned
The DMW maintains that releasing payment before the sale was formally consummated warrants further examination by the Ombudsman. The department also questioned the inclusion of 51 condominium units, valued at approximately P97 million, in the P1.4-billion acquisition.
According to Cacdac, while land titles for the units had already been transferred to the Republic of the Philippines through OWWA, a subsequent inspection by the current OWWA administration found that the condominium structures no longer existed. “The government paid for condominium units that no longer exist. That is the damage. That is the prejudicial part of the government,” the DMW secretary added.
The DMW argued that the missing condominium units may have resulted in an overpricing of the acquisition amounting to around P198 million. It also questioned why the structures were reportedly demolished despite the property's original purpose of serving as a halfway house for overseas Filipino workers.
DMW vows to protect public funds
Cacdac emphasized that the planned Motion for Reconsideration is intended to protect public funds rather than target any individual. “This is nothing personal to any of the parties. We are duty-bound to file this Motion for Reconsideration,” he said.
The secretary also affirmed the department's respect for the constitutional authority of the Office of the Ombudsman and said the DMW would abide by its final ruling after exhausting available legal remedies.
“The department is duty-bound to exhaust all available legal remedies to protect public funds, uphold accountability in the use of government resources, and safeguard the welfare funds of our overseas Filipino workers,” Cacdac said.
