January 21, 1997

DAR OPINION NO. 05-97

Engr. Edillo C. Montemayor

OIC, Regional Director

Department of Public Works and Highways

San Fernando, Pampanga

Dear Engr. Montemayor:

This has reference to your letter requesting for the stand/comment of the Department of Agrarian Reform relative to the on-going right of way acquisition in connection with tine construction of the Pampanga Delta Development Project affecting properties covered under the Operation Land Transfer (OLT).

As gleaned from your letter together with the enclosures therein attached, the landholdings affected by the on-going right of way are Barangay Consuelo in Macabebe, Pampanga and Barangays Nigui, Malauli, Sagrada, San Pedro, Puti, Bagang, Alauli. Bebe-Anac and Bebe Matua in Masantol also in the Province of Pampanga; that field investigation and verification conducted by the DPWH engineers reveal that the lots affected by the on-going construction are landholdings covered under OLT; that in the course of said investigation confusion arose as to who will be the recipient of payment provided for under Section 14 of Executive Order No. 1035 since the farmer-beneficiaries found therein are illegitimate; that incidentally you wanted to know as to when does the transfer of right commence in favor of the farmer/beneficiaries; that it is your belief that cancellation of titles issued pursuant to P.D. 27 will require a long and tedious process; that payment as financial assistance are sought not only by tenants of lands devoted to fishpond operations previously devoted to ricelands; and that by way of suggestion titles should be indorsed directly to the Register of Deeds instead of its normal procedure of passing it from Municipal Agrarian Reform Officer (MARO), Provincial Agrarian Reform Officer (PARO) and then to Register of Deeds in order to cut down the bureaucratic processes and save valuable time.

Though the subject landholdings are covered under the agrarian reform program it is believed that there is no obstacle for the Pampanga Delta Development Project to compulsory acquire the affected landholdings as the intended purpose is for public welfare which is paramount over and above the interest of the few. The acquisition can be done either by tendering to the landowner the value of the subject property or by instituting expropriation proceedings should the landowner refuse to part their landholdings or being willing but cannot agree to the conditions of the transfer. However, the payment of the purchase price provided under Section 14 of Executive Order No. 1035 should only be extended to bonafide farmer-beneficiary owning such land by virtue of an Emancipation Patent issued by the DAR, free from all liens and encumbrances. If the land is not yet covered by an Emancipation Patent but the farmer-beneficiary is still amortizing the same with the Land Bank, payment shall be made by the government, implementing agency/instrumentality to the landowner, or the Land Bank, as the case may be: Provided, That any amortization payments made by the farmer-beneficiary to the landowner, or the Land Bank, as the case may be, shall be deducted by the government implementing agency/instrumentality from the purchase price and shall be paid to the farmer-beneficiary: Provided, further, That the farmer-beneficiary shall be entitled to the financial assistance provided for under Section 18 thereof.

Relative to the issue as to when does the transfer of right of farmer-beneficiary commence, DAR Administrative Order No. 08, Series of 1995 provides that lands awarded to ARBs pursuant to either P.D. 27 or R.A. 6657 may be transferred and registered by the Register of Deeds only after the issuance of a DAR Clearance. Corollary thereto, although the transfer of awarded land is allowed; the productivity of the subject land be maintained and any change in the nature of its use shall not be allowed except with the approval of the DAR under its rules on conversion or exemption. Undoubtedly, the condition therein attached finds no application with respect to the on-going projects since government projects should not be hampered by said condition. It should not stand as the stumbling block because the urgency of the situation demands immediate action.

While we welcome your suggestion that the titles should be indorsed directly to the Register of Deeds instead of passing it from MARO, PARO and then to Register of Deeds, we regret to inform you that said suggestion cannot be considered because until said procedures are amended or abrogated the same will continue to be applied on matters dealing with the cancellation of titles.

We hope to have clarified the matters with you.

Very truly yours,

(SGD.) ARTEMIO A. ADASA, JR.

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

   The Regional Director
DAR Region III
San Fernando, Pampanga

MARO Urdolia M. Nunag

San Gabriel, Macabebe, Pampanga