March 11, 1997
DAR OPINION NO. 24-97
Ms. Perla E. Tanghal
28 Jasmin St.
Cotabato City
Dear Ms. Tanghal:
This has reference to your letter concerning your tenant-beneficiaries who would wish to own the land (fishpond/prawn farm) they are now occupying in the soonest possible time, of which you are in conformity, but due to some legal technicalities such is being held in abeyance.
As gleaned from the documents submitted, noticeable is the fact that you are an owner of a landholding devoted to fishpond/prawn farm; that such landholding is tenanted; that you voluntarily offered to sell to the DAR said landholdings with the conformity of your tenants, however, said offer was rejected by the Land Bank of the Philippines (LBP) contending that such landholdings are outside the coverage of the Comprehensive Agrarian Reform Program (CARP) pursuant to R.A. No. 7881 and its implementing guideline, DAR Administrative Order No. 3, Series of 1995. However, on 17 October 1995, the Sentro Para sa Tunay na Repormang Agraryo (SENTRA) Foundation filed with the Supreme Court a Petition for Certiorari and Prohibition with Application for Temporary Restraining Order and/or Preliminary Injunction against the Secretary of Agrarian Reform to enjoin and/or restrain the Department of Agrarian Reform from enforcing Sections 1, 2 and 3 of R.A. No. 7881 which took effect on March 12, 1995, and its implementing rule, Administrative Order No. 3, Series of 1995, insofar as they exempt fishponds and prawn farms from the coverage of CARL. On 13 November 1995, the Supreme Court issued a Resolution granting the prayer of Petitioners SENTRA, et al., for a Temporary Restraining Order. By virtue of said Ruling, the Department of Agrarian Reform issued Memorandum Circular No. 27, Series of 1995 to hold in abeyance the processing of application for exemption/exclusion of fishponds and/or prawn farms from the coverage of CARP pursuant to R. A. No. 7881 as implemented by DAR A.O. No. 3, Series of 1995, pending further notice from this Office.
Voluntary Offer to Sell (VOS) is a scheme wherein all landowners whose lands are subject for coverage under R.A. 6657 may voluntarily offer their lands for sale to the government. The enactment of R.A. 7881 brought some amendments to R.A. 6657, to be specific, exempting fishponds/prawn farms from the coverage of the CARP. However, pursuant to the subject Supreme Court Resolution, specific provisions of R.A. 7881 and its implementing guideline have been suspended. As a result of which the DAR issued Memorandum Circular No. 27, Series of 1995 to hold in abeyance the implementation of said provisions of R.A. 7881 together with its implementing guideline ( i. e., A. O. No. 3, Series of 1995).
Nonetheless, the aforesaid Supreme Court Resolution granting a Temporary Restraining Order (TRO) and the concomitant DAR Memorandum Circular issued do not ipso facto bring back fishponds/prawn farms within the coverage of CARP. The same merely held in abeyance the processing of applications for exemption/exclusion of fishponds/prawn farms from the coverage of R.A. No. 6657 as amended by R..A. No. 7881. Thus, fishponds and prawn farms are still considered exempt from CARP coverage. However, should landowners owning fishponds/prawn farms choose to apply for exemption/exclusion pursuant to R.A. 7881. applications thereof shall be accepted but the processing shall be held in abeyance subject to the final outcome of the case filed before the Supreme Court by SENTRA Foundation.
Thank you for communicating with us and we hope to have enlightened you on the matter.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning
Copy furnished:
Mr. Perfecto Agulo
Manager - LVO II
EDSP Building
Sinsuat Avenue, Cotabato City