December 24, 1998
DAR OPINION NO. 123-98
Ms. Helene Martinez Arias
516 Silencio Street
Sta. Mesa, Manila
Dear Ms. Arias:
This Office is in receipt of your letter requesting for a higher valuation of your 8.3489-hectare corn land covered by Operation Land Transfer (OLT) pursuant to P.D. No. 27, located at San Vicente Norte, Iriga City. You believe that the compensation given by the Department of Agrarian Reform in the acquisition of your land is not commensurate to the prevailing price per hectare which was based on the government support price for corn grain in 1972. You were convinced that said price is unrealistic considering the present economic situation. You wish that the valuation of your property should be computed based on the prevailing price during the time the land was transferred to the farmer beneficiaries in 1989 wherein the government support price was higher, and not when your property was actually covered by OLT in 1972.
We noted that your letter-request had been answered by Director Percival C. Dalugdug in his letter dated 11 August 1998. We are in accord with his view that since your property was covered on 21 October 1972, it follows that the valuation formula shall be based on the Average Gross Production (AGP) as determined by the Barangay Committee on Land Production (BCLP). This means that the AGP per hectare is multiplied by 2.5 and the product is multiplied by P35.00 for palay or P31.00 for corn based on the government support price at the time the landholding was placed under OLT coverage.
Please be clarified further that pursuant to Administrative Order No. 13, Series of 1994, it provides for the grant of an increment of six percent (6%) yearly interest compounded annually based on the land value as determined under existing valuation formula. This means that landowners who have not yet been paid for the value of their lands are entitled to the 6% increment in addition to the compensable value of the land, and this applies to your case provided you have not yet received any amount of compensation. On the other hand, if you have been given the partial payment thereof, the yearly interest of six percent (6%) compounded annually shall be applied to the unpaid balance.
Finally, we would like to inform you that should you end the valuation unrealistic, you have the right to make an appeal to the Office of the Secretary pursuant to DAR Memo Circular No. 01, Series of 1995, which provides:
"2. All land valuation cases which involve just compensation issues under Presidential Decree No. 27, may upon proper motion be returned to the LBP for recomputation, in accordance with the mandate under Administrative Order No. 13, s. 1994. We would like to inform all Adjudicators that the DARAB does not have jurisdiction to hear and decide valuation cases relative to PD No. 27, such matters being considered as part of the Administrative implementation of PD 27, and therefore cognizable exclusively by the Office of the Secretary. . . ."
Should you still feel aggrieved, you may later appeal to the Special Agrarian Court concerned for the final determination of just compensation.
Thank you for communicating with us and we hope to have clarified matters with you.
Very truly yours,
(SGD.) DANILO T. LARA
Undersecretary for Legal Affairs, and Policy and Planning
Copy furnished:
Director Percival C. Dalugdug
DAR Region V
Lakandula Drive, Legazpi City
PARO Fernando S. Alsisto, Jr.
DAR Provincial Office
San Jose, Pili
Camarines Sur
Director Gloria J. Fabia
BLAD — DAR.
Elliptical Road, Diliman
Quezon City