CEBU, PHILIPPINES — The Mandaue City Legal Office has recommended the filing of criminal and administrative charges against individuals involved in a controversial land acquisition flagged by the Commission on Audit (COA) after auditors found that several of the supposed sellers were already dead when the deed of sale was executed.
City Administrator Gonzalo Malig-on said the legal office recommended a thorough investigation of the offices involved in the acquisition of a 4,000-square-meter property in Barangay Cambaro worth P32 million to determine accountability and identify officials and individuals responsible for the transaction.
The recommendation came after Mayor Thadeo Jovito “Jonkie” Ouano referred the COA audit observation concerning the property purchase of the previous administration.
State auditors found that six individuals listed as sellers in the transaction had already died at the time the deed of sale was signed.
Malig-on said the legal office recommended a deeper probe into the offices involved to identify not only those whose signatures appeared on the documents but also the individuals who facilitated and pushed the transaction.
“Kay usahay ang makit-an man gud ang official documents lang like deed of sale, ang MOA (memorandum of agreement), but who are the people behind, kinsa ang nagpush ani,” Malig-on said.
He added that the legal office also recommended filing cases once the personalities behind the transaction are identified. Malig-on said this would be the next step for the city government.
State auditors earlier described the deceased signatories as “ghost sellers,” noting that six individuals listed as vendors had already passed away when the deed of sale was executed.
For Malig-on, the explanation that the issue was merely an oversight is unacceptable, especially since records show that some of the landowners had died as early as 2004.
He further pointed out apparent irregularities in the transaction documents, citing the absence of identification cards, notarization and witnesses.
“Mao na we will go deeper, based on the recommendation of the city legal office, we will go deeper who are the parties who facilitated, nga dili lang limited sa namirma but those who pushed ani,” Malig-on said, stressing that the transaction caused significant damage to the city.
The property consists of 10 parcels of land with a combined area of 4,000 square meters purchased by the city government for P32 million. Records show that the city had already paid P16 million, or half of the contract price.
Malig-on said the Office of the Mayor would create a special investigation team following the submission of the legal office’s report. Malig-on also emphasized that the city government no longer intends to proceed with the transaction.
“I don’t think sakto nga ipadayon, kay how can you make it proper nga nangamatay naman diay na, dako kaayo na nga problema,” he said.
According to Malig-on, continuing the transaction would place the city at a disadvantage, particularly in transferring land titles.
Should the city formally abandon the deal, he said it would seek the return of the P16 million already paid and pursue criminal charges, including falsification of documents, against those found responsible.
The payment was made under the previous administration.
The property had been intended for a relocation program designed to provide socialized housing for Mandaue residents.
However, Malig-on said the site lacks a right of way and suffers from other issues that make it unsuitable for relocation purposes.
He described the acquisition as not being a “wise purchase,” noting that aside from the alleged irregularities, the area is flood-prone and located within a densely populated community.
Malig-on said the city would adopt COA’s recommendation of mutual restitution, which would entail canceling the transaction and recovering the funds already released.
Aside from mutual restitution, he said administrative cases may be filed against public officials involved in the transaction, while criminal charges may be pursued against those who facilitated it.
According to Malig-on, the transaction began in 2024, while the payment check was issued on June 24, 2025—just a week before Ouano assumed office.
| Written by Kristin de Dios/FPL
