September 13, 1994
DAR OPINION NO. 70-94
Mr. Raymund L. Casiño
President & Chairman of the Board
DMPI Cooperative Inc.
Phillips, Manolo Fortich
Bukidnon
Dear Mr. Casiño:
This concerns the request of the Barangay Council of Damilag, Manolo Fortich, Bukidnon for the donation of a parcel of land awarded to DEARBCI in favor of the local government of Bgy. Damilag to be used as the site of the barangay high school. The Board of Directors of DEARBCI has resolved that it is willing to grant said request, but the prohibition in CARL against the transfer or conveyance of lands covered by CLOAs and the lease of the property involved in favor of Del Monte Philippines, Inc. prompted you to seek DAR advice on how the donation can be legally effected.
Section 27 of R.A. 6657 provides that lands acquired by beneficiaries under said, Act "may not be sold, transferred or conveyed except through hereditary succession or to the LBP, or to the other qualified beneficiaries for a period of ten (10) years." From the said legal provision, it is clear that the donation of the property may be legally done only after the lapse of 10 years from the award of the land involved. Prior to the lapse of said 10-year period, it is submitted that a lease contract on the parcel involved may be entered into between DEARBCI and the local government unit to enable the latter to pursue the development of the area as a school site, provided that:
1. The lease contract does not contravene the obligations of DEARBCI under its lease contract with DMPI, or better yet, DMPI has granted conformity to the lease;
2. Five years have already elapsed from the date the land has been awarded to the cooperative and a DAR Order of Conversion has been obtained upon the application of DEARBCI pursuant to Section 65 of RA 6657; and
3. The compensation on the lot involved has been fully paid by the beneficiary.
We hope we have clarified matters for you.
Very truly yours,
(SGD.) HECTOR D. SOLIMAN
Assistant Secretary
Legal Affairs Office
Copy furnished:
OSEC
Doc. No. 94-08-0434