June 23, 1998
DAR OPINION NO. 72-98
JOSE Z. GRAJEDA
Provincial Agrarian Reform Officer
San Jose, Pili, Camarines Sur
Dear PARO Grajeda:
This has reference to your letter (i.e., Case Brief on the Bicol Sanitarium Property) seeking opinion in the queries posed therein, to wit:
a) What implementing guidelines should be followed in proceeding with the coverage of the property of Bicol Sanitarium? Should the property be treated as compensable by Land Bank? and
b) Should there be a Memorandum of Agreement between the Department of Agrarian Reform and the Department of Health signed by their respective Secretaries?
As culled from the aforesaid Case Brief, the subject property has an aggregate area of 379.7686 hectares registered under PSU-131938 and situated at Barangays Barcelonita, Biong and San Pedro in Cabusao, Camarines Sur, that said landholding was formerly owned by a certain Cesario Fabricante of Naga City until it was sold thereafter to the then Bureau of Hospitals on 06 October 1948 in the amount of P42,350.00; that on the Deed of Sale, Herminigildo A. Carpio was named the transferee of the subject property (acting as the authorized representative of the Bureau of Hospitals) who was then the designated Provincial Engineer of the Province of Camarines Sur; that upon registration, the property was declared for taxation purposes in the name of the Bureau of Hospitals (now in the name of the Bicol Sanitarium); that to this date the Bicol Sanitarium has failed to let its title judicially confirmed; that neither was there any Presidential or Congressional Proclamations issued to the effect that said property is intended for the Bicol Sanitarium; that out of its aggregate landholdings, 15.0000 hectares are devoted to hospital buildings and facilities, 6.5585 hectares are for residential, 226.5521 hectares are idle lands and only 131.6580 hectares are actually devoted for agricultural purposes; and that since only a small portion of the land is being utilized directly for medical purposes, the DAR sees it fit to cover the property under CARP.
Anent your first query, Sections 4 (c) and 7 (Phase One) of R.A. No. 6657 in conjunction with Section 1 of Executive Order No. 407, Series of 1990 are the applicable provisions of law in the instant case. Relative thereto, DAR Administrative Order No. 09, Series of 1990, as amended is the applicable implementing guideline. The applicability of the aforesaid provisions of law and subject guideline is evident for the same provide for the coverage of private and government-owned lands suitable for agriculture according to the schedule of implementation as provided for by law. The clear and unequivocal language and provisions of said laws and guideline afford us with no other conclusion but to apply the same on the matter.
Corollarily, as to the issue on whether or not the subject property shall be treated as compensable by the Land Bank, the answer is in the affirmative. Specifically, DAR Administrative Order No. 06, Series of 1989, as amended by Administrative Order No. 6, Series of 1992 and other succeeding guidelines on valuation, explicitly provides that this valuation guideline shall apply to all agricultural lands as enumerated under Section 4 of Republic Act No. 6657 a (Comprehensive Agrarian Reform Laws), which includes all public and private agricultural lands as provided in Proclamation No. 131 and Executive Order No. 229, including other lands of the public domain suitable for agriculture, more specifically, as applied in the instant case, Section 4 (c) thereof covering all other lands owned by the government devoted to or suitable for agriculture.
Anent your second, query, the execution of a Memorandum of Agreement between the DAR and the DOH, provided it is pursuant to and in compliance with existing agrarian laws, rules and regulations, is a step in the right direction insofar as the transfer of the subject landholdings to the DAR is concerned. The execution of a MOA will facilitate the transfer and will ensure the strict compliance of the terms and conditions therein stated. As the MOA partakes of the nature of a contract, the same will constitute as the law between the contracting parties which will serve as a safeguard against possible breach.
It has to be stressed here, however, that the legally mandated retention limit, and landownership ceiling of` five (5) hectares (Sections 6 and 73 (a), R.A. No. 6657) must be observed, unless a Presidential Proclamation is issued, since large portions of the subject lands are nonetheless still being proposed to be retained and owned by the Bicol Sanitarium in its proprietary or private capacity.
Please be guided accordingly and we hope to have clarified the matters with you with you.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning
Copy furnished:
Percival Dalugdug
Director
DAR-Region V
Lakandula Drive, Gogon
Legaspi City
Municipal Agrarian Reform
DAR Municipal Office
Cabusao, Camarines Sur