October 4, 1995
DAR OPINION NO. 58-95
Engr. Felix B. Aguhob
OIC-PARO
DAR, Cagayan de Oro City
Dear PARO Aguhob:
This has reference to your request for clarification regarding certain parcels of land which were turned over to the DAR by GFI's for redistribution to qualified beneficiaries pursuant to EO No. 407 but which were classified as non-agricultural prior to June 15, 1988.
You state that CLOAs covering said lands have already been generated or distributed to ARBs but that the LBP refuses to value the same in view of DOJ Opinion No. 44 and the ruling of the Supreme Court in the Natalia case, as well as the persistent clamor of GFIs for a Deed of Reconveyance or return of said properties. On the other hand, the beneficiaries have manifested their strong opposition and insist that LBP should conduct the valuation and receive their amortization payments.
Your query is whether other options aside from cancelling previously issued CLOAs are available and whether DAR has to initiate the cancellation of CLOAs with reconveyance of the property in favor of said GFIs.
If the GFIs are convinced that the properties turned over to DAR are exempt from CARL coverage by virtue of their having been reclassified as non-agricultural prior to the effectivity of CARL, and would like their properties reconveyed, cancellation proceedings should be made at their instance and filed with the Provincial Adjudicator having jurisdiction thereon. It should be noted that the reconveyance to the GFI shall be made only after a final and executory decision has been rendered on the exemption of the property from CARL. However, although the LBP refuses to value on said ground if the GFI is interested in entering into an agreement for a Direct Payment Scheme (DPS) with the FBs, the same is an option that can be legally considered.
Please be guided accordingly.
Very truly yours,
(SGD.) HECTOR D. SOLIMAN
Assistant Secretary Legal Affairs Office