April 5, 1994

DAR OPINION NO. 25-94

    MEMORANDUM

    FOR             :     JOSE C. MACALINDONG
                                                 Asst. Director, BLD and
                                                Chairman, Land Use Conversion Committee

    SUBJECT    :     Draft letter to Associate Executive Trustee Jose Sison

Anent subject draft letter to Mr. Jose Sison of APT, hereunder are our observations, comments and recommendation:

At this point, no DAR clearance — conditional or otherwise — can be issued for the registration of the sale on 5 December 1990 of the 36.6572-hectare properties from APT to the Columbian Manufacturing Corporation. A DAR clearance for registration signifies that the transaction involved does not contravene the mandate under CARL to acquire and distribute agricultural lands to qualified beneficiaries. The 1985 Tax Declarations show, however, that 8.1555 hectares of the properties subject of the sale by APT are riceland (unirrigated), 1.6930 hectares are riceland (upland) and 26.3087 hectares are coconut lands. Based on said Tax Declarations, the presumption is that the properties fall under CARP coverage. To rebut said presumption, the allegation by APT that the subject parcels of land are not suitable for agriculture but are more suitable as a resort must first be clearly established before the DAR clearance for registration can be issued.

RECOMMENDATION:

Since the properties involved are neither exempt from CARP coverage under Sec. 10 of RA 6657 nor under DOJ Opinion No. 44, S. 1990, and the intent is to convert the same into a beach resort, the APT should be advised to file an application for conversion or empower the Columbian Manufacturing Corporation thru a Special Power of Attorney to file said application for conversion. Should DAR find the properties to be eligible for conversion, there would no longer be any legal impediment for the issuance of the DAR clearance for registration.

(SGD.) HECTOR D. SOLIMAN
Assistant Secretary
Legal Affairs Office