December 24, 1996

DAR OPINION NO. 140-96

Honorable Imelda C. Roces

City Mayor

Legazpi City

Dear Mayor Roces:

This refers to your letter concerning the properties of Mr. Luis S. Los Baños and family, located at Momapon, Legazpi City wherein you are requesting for the deferment of its coverage under the Comprehensive Agrarian Reform Program (CARP), on the ground that it has been chosen as an alternative site for the Bicol Regional Industrial Center (BRIC), a project spearheaded by the Department of Trade and Industry.

A perusal of the record shows that you sent a letter dated 17 March 1993 to former Mayor Luis S. Los Baños informing him that subject landholdings are considered as the alternate site for the BRIC, after the original site located in Lamba consisting of 100 hectares has been abandoned by the Regional Development Council (RDC), which decided after a thorough study and deliberation that the off-site development and other costs in the area would render the project not financially viable. You proposed therein that former Mayor Los Baños should signify his intention to donate portion of the lot to the City of Legazpi for site development of BRIC before the start of actual development solely for BRIC utilization and to apply with the Sangguniang Panlalawigan (SP) for conversion of said lot from agricultural to industrial. Former-Mayor Los Baños, in his letter dated 12 April 1993 made a counter proposal to you before he would donate said property to the City of Legazpi.

From the Report dated September 14, 1993 of the Chief Legal Officer of DAR Region V, it appears that as early as June 29, 1993, a Notice of Coverage has already been sent to Mr. Los Baños informing him that said properties are now being covered by the CARP.

Based on Section 11 of R.A. 6657 as amended by Section 3 of R.A. 7881, CARP coverage deferment applies to commercial farms only subject to the condition provided for therein. The rationale of the said provision is to allow (landowners) to recover their investments and insulate them from possible disruption in operations and productivity during the land acquisition and distribution. Since the subject landholdings do not fall within the purview of the afore-cited law and considering the time-honored principle of law that "what the law does not include, it excludes", we cannot grant your request for deferment of its coverage.

In connection with your other proposal in that Mr. Los Baños should apply for conversion of the landholdings from agricultural to commercial use with the Sangguniang Panlalawigan, the same is untenable, because the lands has already been subjected to CARP coverage. DAR Administrative Order No. 12, Series of 1994 entitled "Consolidated and Revised Rules and Procedures Governing Conversion of Agricultural Land to Non-Agricultural Uses", specifically VI-E provides:

VI-E.   No application for conversion shall be given due course if:

1)         The DAR has issued a Notice of Acquisition under the Compulsory Acquisition process;

xxx                      xxx                      xxx

Thank you for communicating with us and we hope to have clarified the matters with you.

Very truly yours,

(SGD.) LORENZO R. REYES

OIC-Undersecretary
LAFMA

Copy furnished:

Ex-Mayor Luis S. Los Baños

Legazpi City

The Municipal Agrarian Reform Officer

Department of Agrarian Reform

City Hall Compound, Legazpi City

The Regional Director

DAR Region V

Legazpi City

The Chief, Legal Division

DAR Region V

Legazpi City