Mandaue City set to investigate 'ghost sale' of Cambaro land

MANDAUE CITY, Cebu — The Mandaue City Government will investigate the offices and individuals involved in the allegedly irregular or “ghost” sale of 10 parcels of land in Barangay Cambaro that the city purchased.

Mandaue City Administrator Atty. Gonzalo Malig-on Jr. said that he received the City Legal Office’s initial report early this month. It contains preliminary findings and recommendations for a deeper inquiry.

Earlier, the City Legal Office launched an investigation after the Commission on Audit (COA) issued an Audit Observation Memorandum (AOM) flagging possible irregularities in the transaction.

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The COA report noted that some transactions proceeded directly through deeds of sale despite the reported deaths of some of the property owners.

Documents signed by dead people

City Legal Officer Erwin Rommel Heyrosa said that the AOM indicated that several individuals listed as sellers in the deed of sale had already died at the time the documents were executed.

Atty. Malig-on said that based on the initial findings, the City Legal Office recommended further investigation into the offices that processed the transaction and the individuals behind it, not limited to the signatories in official documents.

The report cited possible irregularities in the documentation and execution of the transaction.

That includes possible lapses in due diligence such as questionable notarization, missing identification records, and inconsistencies in the execution of special powers of attorney.

Who pushed for the Mandaue City lots purchase?

“Mga unom ang patay sa mga tag-iya nipirma. I don’t know unsaon na nila pag-esplikar nga nasipyat lang nga dugay nang nangamatay, naay 2004 based sa records, naay documents nga nadapat na-due diligence…These are badges of irregularities,” Malig-on said. He added that the findings remain preliminary and subject to further validation.

(The documents included signatures from six owners who had already died before the transaction. I don’t know how those involved can explain that. Some of those persons died in 2004, based on the records. There were documents that needed to go through due diligence.)

He said that the legal office also recommended identifying the persons who facilitated and pushed for the transaction. Official records such as deeds of sale and memoranda of agreement do not fully identify all those involved in the deal, he pointed out.

The land deal was processed in 2025, with supporting documents dating back to 2024. The deed of sale was completed around June 2025, shortly before the change in city administration. Local elections took place in May 2025.

Malig-on said that the city government purchased 10 parcels of land covering nearly 5,000 square meters originally intended for socialized housing. But concerns later surfaced on the suitability of the properties, including access limitations, drainage issues, and site conditions.

The city has already released around ₱16 million as partial payment for the property. Another ₱16 million remains unpaid, pending completion of the title transfer.

Investigation continues

The City Legal Office, acting on COA’s observation, also recommended mutual restitution. This may include the cancellation of the transaction and recovery of payments made, subject to legal proceedings.

Administrative and criminal cases may be pursued if irregularities are confirmed, Malig-on also said.

The city administrator said that Mandaue City will continue validating the initial findings as part of the planned investigation into the transaction.

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