January 11, 1995
DAR OPINION NO. 01-95
MR. KELLY B. MARFORI, et al.
North Poblacion
Masinloc, Zambales
Dear Mr. Marfori, et al.:
This refers to your letter to Justice Secretary Franklin Drilon requesting clarification as to the law that governs the payment of compensation to the agricultural lessees of certain lands expropriated by the National Power Corporation. Specifically, you wish to be informed on whether compensation shall be based on the Agrarian Reform Code (RA 3844, as amended) or Executive Order No. 1035.
Please be informed that the compensation to the agricultural lessees provided in Section 36(1) of RA 3844, as amended applies to cases of legal conversion, that is, cases where the use of the land for purposes other than agricultural is approved by the DAR upon the application of the landowner. Otherwise stated, the disturbance compensation provided in Section 36(1) of RA 3844 covers cases of legal conversion undertaken at the instance of the landowner. Since expropriation (such as the NAPOCOR project mentioned in your letter) is undertaken at the instance of the government in exercise of its power of eminent domain, it is not covered by said Section 36(1) of RA 3844.
On the other hand, E.O. 1035 (copy attached) clearly provides in Section 1 thereof that the same covers "all acquisitions of private real properties or rights-of-way (ROW) thereon needed for infrastructure projects and other development projects of the government which are undertaken by any ministry, agency, office or instrumentality of the government including government-owned or controlled corporations and state colleges and universities". Section 10 of the same Executive Order provides for the basis for determining the amount of financial assistance to be given to tenants/farmers of agricultural lands.
Based on the foregoing, it is submitted that RA 3844 is not the applicable law on compensation to displaced tenants/farmers in expropriation cases but rather E.O. 1035 (unless otherwise modified/repealed).
We trust we have clarified matters for you.
Very truly yours,
(SGD.) HECTOR D. SOLIMAN
Assistant Secretary Legal Affairs Office
Copy furnished:
Atty. Teresita Reyes-Domingo