May 25, 1995
DAR OPINION NO. 21-95
Col. GREGORIO D. MANALANG, JAGS (Ret.)
3 Biscayne St., Fairview
Quezon City
Sir:
This is in connection with your letter addressed to President Fidel V. Ramos and indorsed to our office requesting, on behalf of your clients, Herman A. Bacaltos, et al., (Heirs of Capitan Juan Gonzales) that the 500 land titles covering portions of Fort Bonifacio Military Reservation, over which your clients have a long-standing claim of ownership, be segregated and that the P500 million turned over by Jose Yao Campos to the government be placed in escrow with the LBP or DBP in Cebu City.
As you have explained, the purpose of the request to place in escrow the P500 million turned over by Mr. Campos to the PCGG is to make said amount readily available to your clients as needed, because if said amount is mingled with the General Funds in the National Treasury, legislative and executive actions will be required once sufficient proof of ownership by them is established.
DAR submits that the instant request cannot be granted, in view of the provision in Section 2 of Proclamation 131 as reiterated in Section 20 and 21 of EO 229 and Sec. 63 of RA 6657, as well as the provision of Sec. 1(b) par. 2 of RA 7661 (copies attached for reference).
Taken together, the aforecited provisions clearly state that all PCGG recoveries shall be applied to the account of the Agrarian Reform Fund until completion of the total initial amount of P50 billion, after which 60% of said recoveries shall be automatically appropriated to the special account of the Agrarian Reform Fund and 40% to the General Fund. Thus far, the only exception to the said provisions is that found in Republic Act 7202 (The Sugar Restitution Law) which mandates that any amount recovered by the government determined to have been stolen or illegally acquired from the sugar industry shall be used to compensate all sugar producers from Crop Year 1974-1975 up to and including Crop Year 1984-1985 on a pro rata basis. In fine, the mandate in the aforecited provisions of law to apply PCGG recoveries to the Agrarian Reform Fund is explicit and so far admits of only one exception, that is, as provided in the Sugar Restitution Law. Hence, granting your clients request to place in escrow the P500 million turned over by Mr. Campos would be violative of said mandate.
We hope to have clearly explained our position on the matter.
Very truly yours,
(SGD.) HECTOR D. SOLIMAN
Assistant Secretary Legal Affairs Office
Copy furnished:
OSEC
Doc No. 95040031
Usec Renato B. Padilla
Special Concerns and
External Affairs Office
Asec Rolando Ll. Querubin
FMAO
Jose V. Mejia
Director IV
Special Concerns
Chairman Magtanggol Gunigundo
Presidential Commission Good Government
PHILCOMCEN Bldg.
6th Ground Flr.
Ortigas corner San Miguel Ave.
Pasig, Metro Manila
Commissioner Hermilo Rosal
Presidential Commission on Good Government
PHILCOMCEN Bldg.
6th Ground Flr.
Ortigas corner San Miguel Ave.
Pasig, Metro Manila
Herminio A. Mendoza
Presidential Commission on Good Government
PHILCOMCEN Bldg.
6th Ground Flr.
Ortigas corner San Miguel Ave.
Pasig, Metro Manila
Hon Antonio T. Carpio
Presidential Commission on Good Government
PHILCOMCEN Bldg.
6th Ground Flr.
Ortigas corner San Miguel Ave.
Pasig, Metro Manila
Mr. Timoteo P. Olarte
Asst. Vice President /Branch Head
DBP, Cebu City
Mr. German A. Bacaltos
c/o Col. Lorenzo B. Camins (Ret.)
Administrator, Consular Area
Fort Bonifacio, Makati
Metro Manila
Col. Florencio Pangilinan
108 Benavidez Street
Legaspi Village, Makati
Metro Manila