September 15, 1994
DAR OPINION NO. 73-94
HON . JOSE CARLOS V . LACSON
Chairman
Banks and Financial Intermediaries
House of Representatives
Dear Congressman Lacson:
This refers to your request that the Presidential Commission on Good Government preserve, for the benefit of the sugar industry, the assets ceded by Mr. Roberto S. Benedicto in favor of the Government by way of compromise in Civil Case No. 0009-Sandiganbayan.
Your letter to the PCGG states that the Committee on Banks and Financial Intermediaries has identified said assets, as well as the shares of Mr. Benedicto in the sequestered California Overseas Bank and in PIEDRAS, as assets belonging to the sugar industry and forming part a of the Sugar Restitution Fund.
We are in accord with your position that Republic Act. No. 7661, which provides for the remittance to the National Treasury of all receipts from the sale of assets of the Asset Privatization Trust, does not affect PCGG recoveries which pertain to the Sugar Restitution Fund. It is submitted that although RA 7661 (approved on 23 December 1993) is a later laws it does not have the effect of amending RA 7202 (approved 29 February 1992) because the policy of Government to restitute the losses suffered by the sugar producers is explicitly declared in RA 7202 and no provision in RA 7661 negates the same. Hence, any amount recovered by the Government determined to have been stolen or illegally acquired from the sugar industry forms part of the Sugar Restitution Fund.
We wish to clarify, however, that RA 7661 mandates the satisfaction and completion of the total initial amount of Fifty billion pesos within the ten-year period of implementation of the Comprehensive Agrarian Reform Program. This means that PCGG recoveries, (except those belonging to the Sugar Restitution Fund) shall be applied to the account of the Agrarian Reform Fund until completion of the fifty billion pesos, after which the 60%-40% proportion shall be applied.
We hope to have clearly explained our position regarding the matter.
Very truly yours,
(SGD.) HECTOR D. SOLIMAN
Assistant Secretary
Legal Affairs Office
Copy furnished:
OSEC
Hon. Magtanggol Gunigundo
Chairman
Presidential Commission
on Good Government
Philcomsat, Bldg., Ortigas Ave
Mandaluyong, Metro Manila