Mandaue City is moving to cancel a P32-million housing land deal in Barangay Cambaro after discovering that six individuals who purportedly signed the 2025 sales documents were already deceased.
A City Legal Office report dated June 2, 2026, flagged "badges of irregularity" in the paperwork, noting missing witnesses, absent identification documents, and the absence of a proper right of way.
City officials are seeking to recover a P16-million down payment through mutual restitution while investigating potential administrative and criminal cases against those who facilitated the transaction under the previous administration.
THE Mandaue City Government is moving to cancel a P32-million land deal meant for low-income housing. A legal review discovered a shocking detail: six of the landowners who supposedly signed the sales paperwork were already dead before the deal happened.
On top of these legal issues, officials revealed that the chosen property has no proper right of way and poses serious flooding risks for the neighborhood.
The Cambaro land deal probe
The deal involved buying 10 pieces of land in Barangay Cambaro back in June 2025 under the City's previous administration. Mandaue City has already paid a 50 percent down payment of P16 million.
However, major legal problems found during a review have put the entire deal in doubt, making it hard for the city to legally transfer the property titles.
Mandaue City Administrator Gonzalo “Sally” Malig-on shared that these findings came from an initial report by the City Legal Office on June 2, 2026. The report strongly suggests a deeper investigation and possible lawsuits against the people who pushed the deal through.
“I have a copy of the City Legal report dated June 2, 2026, and I reviewed it this morning. These are only initial findings, but the report recommends a deeper investigation into the offices involved in the transaction. There is also a recommendation to file cases once the case build-up is completed,” Malig-on said.
According to official records, six of the landowners whose signatures were on the paperwork had passed away before the sale took place. Remarkably, one of them died over twenty years ago.
“The problem is that around six of the owners who supposedly signed the documents were already deceased,” Malig-on explained. “Some records even show that one of them died as early as 2004. It would be difficult to explain how these signatures appeared in the transaction.”
The City Legal Office also found issues with the Special Powers of Attorney documents. Some of these papers lacked witnesses, while others were missing required identification documents even though they had been notarized.
“There were documents that were not properly executed. Some had no witnesses, while others lacked identification cards despite having been notarized,” Malig-on said. “These are badges of irregularity.”
Risks of building on the site
Beyond the messy paperwork, City officials discovered that the land itself is not a good fit for a housing project.
A recent assessment showed the area has no proper right of way. Additionally, building a housing project there could cause severe flooding in nearby areas because Barangay Cambaro is already very crowded.
“We have also received feedback that if socialized housing is developed there, it could worsen flooding in surrounding areas because Cambaro is already densely populated. On the surface, it does not appear to be a wise purchase, aside from the alleged irregularities,” Malig-on said.
Recovering taxpayer money
City Hall officials are now trying to figure out how to get back the public funds and hold the responsible people accountable.
“The City has already suffered damage because ₱16 million has already been paid,” Malig-on said. “When you look at the documents, you see the Deed of Sale and the Memorandum of Agreement, but the bigger question is: Who were the people behind this? Who pushed this transaction?”
To recover the money, the City is looking into a legal option called "mutual restitution," which was previously suggested by the Commission on Audit. This would cancel the contract and force the other party to return the ₱16 million down payment.
“Mutual restitution means cancelling the transaction and requiring them to return the money,” Malig-on explained. “There may also be administrative cases against government officials involved and criminal cases against those who facilitated the transaction.”
What Happens Next?
The City Legal Office has recommended a complete investigation to find everyone who took part in or helped with the deal.
Mayor Thadeo Jovito “Jonkie” Ouano will make the final choice on whether to officially end the contract and file administrative, civil, or criminal charges against those responsible. While the investigation moves forward, city officials will look for safer, alternative locations for the housing program while fighting to get the taxpayers' ₱16 million back. ABC