MANILA, Philippines — Former Overseas Workers Welfare Administration (OWWA) Administrator Arnell Ignacio was removed from office due to “loss of trust and confidence” following serious lapses involving an unauthorized P1.4 billion land acquisition, the Department of Migrant Workers (DMW) said on Monday.

In a statement, DMW Secretary Hans Leo Cacdac said Ignacio did not resign but was dismissed after committing procedural and substantive violations in securing the land deal without prior approval from the OWWA Board of Trustees on at least six critical matters.

Among these issues were the proposed construction of a “Halfway House” for repatriated overseas Filipino workers, the conversion of P2.6 billion in emergency repatriation funds to capital outlay, and the signing of a Deed of Absolute Sale and Deed of Donation for the property without proper authority.

Cacdac also flagged an addendum to the property sale, allowing tax reimbursements to the seller despite OWWA’s tax-exempt status, and the assumption of lease contracts that were neither disclosed in the sale nor approved by the board.

The demolition of a building with 52 condominium units—already titled under the Republic of the Philippines—was also done without board clearance. The units were a significant factor in the property’s valuation by the Land Bank of the Philippines, which formed part of the P1.4 billion price tag.

Cacdac said OWWA still does not have full possession of the property despite completing payment. Complicating the issue further, the seller’s attorney-in-fact reportedly collected lease rentals post-sale and was entrusted with two significant amounts: P36 million returned by OWWA for transfer taxes allegedly paid by mistake, and around P1.4 million in collected rent from tenants.

“In due time, appropriate administrative and criminal cases will be filed against responsible OWWA officers who participated in the anomalous transactions,” Cacdac said.