OWWA trust fund not used in P1.4-B illegal land deal, says Palace

INQUIRER.net file photo

MANILA, Philippines — Malacañang said on Monday that based on an ongoing investigation, the Overseas Workers Welfare Administration (OWWA) trust fund remains untouched despite concerns surrounding the P1.4-billion land deal that led to the removal of OWWA Administrator Arnell Ignacio.

Palace Press Officer Claire Castro said that according to the initial findings, there is no indication so far that the fund—meant exclusively for the welfare of overseas Filipino workers (OFWs)—was used to acquire the property located near Ninoy Aquino International Airport (Naia) Terminal 1.

“Based on the initial investigation, the OWWA trust fund was not affected. There was a probe to see if any part of it was used but initial findings show that none of it was touched,” Castro said in a Palace press briefing.

Under Republic Act No. 10801, or the OWWA Act, the OWWA Fund is classified as a private trust fund solely for the benefit of its member-OFWs and their families.

Strict rules on usage

The law strictly limits its use for OWWA’s core programs and services. It also explicitly prohibits the fund from being spent to augment the expenditures of other government entities.

Section 38 of the law states: “The OWWA Fund can only be used for the purposes for which it was created, that is, to serve the welfare of member-OFWs and their families, which shall include the financing of core programs and services of the OWWA. No funds shall be withdrawn from the OWWA Fund to respond, aid, supplement, or in any manner augment any required expenditure by other government agencies.”

The law also clarifies that the fund, being a trust, is exempt from the government’s “one fund doctrine” and must not revert to or be merged with the national coffers.

The alleged anomalous P1.4-billion land acquisition deal, which supposedly did not have the approval of OWWA’s Board of Trustees, is now under investigation by the Department of Migrant Workers.

Migrant Workers Secretary Hans Cacdac clarified earlier that Ignacio did not resign from his post. He was removed from office, Cacdac said, on the grounds of “loss of trust and confidence.”

The land deal was meant for the construction of a dormitory-type facility for OFWs near Naia Terminal 1.

Castro said the investigation will also look into the possible involvement of other OWWA officials in the deal.

“At present, everything is still under investigation. If there are other officials involved, action will be taken. Whether they are removed or suspended, immediate action will follow,” she added. —PNA