‘Dead’ persons sell lots to Mandaue

CEBU, Philippines — The Commission on Audit (COA) has flagged the Mandaue City Government’s purchase of a 4,000-square-meter property in Barangay Cambaro worth P32 million after auditors discovered that several of the supposed sellers were already deceased when the deed of sale was executed.

The Mandaue City Legal Office confirmed receiving an Audit Observation Memorandum (AOM) from COA regarding the acquisition made during the previous administration.

According to the memorandum, six individuals listed as sellers had already died at the time the deed of sale was signed, prompting state auditors to refer to them as “ghost sellers.”

In an interview, City Legal Office head Atty. Erwin Rommel Heyrosa said their office received the COA report about two weeks ago and that Mayor Thadeo Jovito “Jonkie” Ouano has already directed a formal investigation into the transaction.

Heyrosa described the acquisition as a possible “midnight purchase,” allegedly undertaken by the administration of former acting mayor Glenn Bercede just six days before Ouano assumed office.

The property consists of 10 lots 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.

Heyrosa said the payment was made under the previous administration.

“Ang cheque nga gi-issue was June 24, 2025, six days before ma-terminate ang iyang term,” he said.

He added that the COA findings point to the presence of “ghost sellers.”

“It is very clear nga atong makita sa report nga there are ghost sellers. Mga patay nga nagbaligya, nga nitamla. Unsaon pagtamla nga patay naman,” Heyrosa said.

According to the city legal officer, the property was intended for a relocation program aimed at providing housing for Mandaue residents.

However, he said the site allegedly lacks a right of way and has other issues that make it unsuitable for relocation purposes.

Heyrosa noted that one of the deficiencies cited was the fact that some of the signatories to the deed of sale were already deceased.

He explained that under the law, when a property owner has already died, the transaction should not proceed through a direct deed of sale. Instead, an extrajudicial settlement of estate with sale should first be undertaken.

The city legal officer added that the city should have settled the estate taxes of the deceased owners before proceeding with the purchase.

“But nakita nato pinaagi sa AOM sa COA nga wala na nila buhata. Gi-deretso na nila og deed of sale,” he said.

“Ila rang gipangbuhi ang mga patay, nga ang nipirma pa,” Heyrosa added.

As part of the ongoing investigation, the City Legal Office is now securing the death certificates of the listed sellers.

Heyrosa said they are likewise following the AOM’s recommendation for mutual restitution.

“But kung mahimo ni nato nga naay mutual restitution, meaning to say, i-uli nato ang ilang property, i-uli sad nila ang bayad,” he said.

However, he noted that the filing of criminal charges, including falsification and forgery, remains a possibility.

Heyrosa stressed that the matter is prejudicial to the interests of the city government and must be thoroughly investigated.

Since Ouano was not yet in office when the transaction was completed, he said the inquiry is focused on identifying lapses in the process, determining who recommended the purchase, and establishing why the city government proceeded with the acquisition.

He clarified that the apparent irregularities do not necessarily point to wrongdoing on the part of the sellers, whose primary interest was receiving payment for the property.

“Kung ako ang tag-iya sa yuta, mudawat ko. In what way possible nga makadawat ko sa proceeds sa sale, mudawat ko,” Heyrosa said.

He emphasized that the city government, as the buyer, should have exercised due diligence before entering into the transaction.

“But ikaw nga nagpalit, imo gyud na tan-awon og maayo kung kanang nagbaligya sila ba gyud ang tag-iya ani,” he added.

The city legal officer said investigators are now identifying all personalities involved in the transaction.

He added that once the City Legal Office completes its findings, Mayor Ouano will create a special team to conduct a full investigation.

Heyrosa underscored the importance of securing a relocation site given the city’s pressing housing needs.

“But di man ta kagamit sad kay walay right of way unya lupa man,” he said.

He also revealed that the Housing and Urban Development Office (HUDO) is not considering the property as a future relocation site because of its present condition.

Vice Mayor Glenn Bercede said he has yet to review the COA report. He said he would comment on the issue after officially receiving a copy of the audit findings. — (FREEMAN)