The Commission on Audit (COA) has flagged irregularities in a land transaction involving the Mandaue City Government after auditors found that six individuals listed as sellers in a deed of sale were already deceased at the time the document was executed.
The Mandaue City Legal Office confirmed it has received a COA Audit Observation Memorandum (AOM) covering the city’s purchase of a property in Barangay Cambaro.
According to the COA report, the transaction involved six supposed sellers who had already died when the deed of sale was signed, prompting auditors to describe them as “ghost sellers.”
City Legal Office head Atty. Erwin Rommel Heyrosa said the office received the COA findings about two weeks ago and has since been ordered by Mayor Thadeo Jovito “Jonkie” Ouano to conduct an investigation.
Heyrosa said the property deal appeared to have been executed shortly before the change in city leadership, describing it as a “midnight purchase” allegedly carried out under the previous administration of former mayor Glenn Bercede just days before the end of his term.
The property consists of 10 lots with a total land area of 4,000 square meters, with a total purchase price of P32 million. The city has reportedly paid P16 million, leaving an outstanding balance of another P16 million.
“Nakita nato sa COA report nga there are several persons nga patay na at the time of the execution of the sale,” Heyrosa said.
He said the City Legal Office is validating the findings and gathering supporting documents, including death certificates of the listed sellers.
COA also noted deficiencies in the transaction process, including the execution of a direct deed of sale despite the apparent need for an extrajudicial settlement of estate, given that some property owners were already deceased.
“Gi-deretso na nila og deed of sale,” Heyrosa said, adding that estate settlement procedures and tax requirements may not have been properly complied with.
The legal officer said one of the key concerns is that the transaction may have involved procedural lapses that exposed the city government to legal and financial risks.
Heyrosa added that COA has recommended possible mutual restitution, which would mean returning the property to the sellers’ heirs while recovering payments made by the city.
“Mutual restitution, meaning i-uli nato ang ilang property, i-uli sad nila ang bayad,” he said.
He also said criminal liability, including possible falsification or forgery charges, remains under evaluation depending on the findings of the investigation.
The City Legal Office is also examining whether the property is suitable for its intended purpose as a relocation site for informal settler families. Heyrosa said the lot reportedly lacks a proper right of way, raising concerns about its usability for housing development.
“Di man ta kagamit kay walay right of way,” he said.
He added that the Housing and Urban Development Office (HUDO) is also reviewing the site due to its limitations.
Heyrosa said Mayor Ouano is expected to form a special team to further investigate the transaction and identify the officials and processes involved in the approval of the purchase.
Vice Mayor Glenn Bercede, who was mentioned in relation to the previous administration, said he has yet to review the COA report and will issue a statement once he has obtained an official copy.
Photo courtesy of Wikipedia
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