July 2, 1996
DAR OPINION NO. 49-96
MEMORANDUM
FOR : Director Jose Llames
DAR Region VII
Cebu City
SUBJECT : Request of Canlaon City for the Transfer in its Favor of an 18-hectare Portion of the
Jalandoni Estate Foreclosed by PNB
Referred to this office is the request for the acquisition and direct transfer with cost to the City of Canlaon by the Republic of the Philippines through DAR of the 18-hectare portion of TCT-191 (Jalandoni Estate) foreclosed by PNB San Carlos City Branch located at Brgy. Panubigan, Canlaon City. As gleaned from the subdivision plan of Lot 2913, Cad. 782-D, Canlaon Cadastre (T-191), the lots subject of the request are lot nos. 18, 37, 44, 58-60, 62, 64-65, 72-73, 100, 119, 120-132, 133-142, 144-147, 149-159, 160-170 and 172.
The letter of Mayor Jose B. Cardenas to Pres. Fidel V. Ramos states that the City is presently using the property for development projects and as an expansion site for their growing city; that the City of Canlaon has been working to have full ownership over the property but their efforts seem to be uncertain so they made their appeal directly to the President for they believe that through the President's intercession they can acquire full title over the property; that prior to and after the transfer of the agricultural properties of PNB, the BARC of Panubigan, Canlaon City allocated in favor of the city government a total of 18-hectares (portion of T-191); that the award of said area was embodied in 2 resolutions, one dated June 5, 1989 for 10 has. and the other dated June 5, 1992 for 8 has.; that a resolution was passed by the Sangguniang Panlungsod of Canlaon City resolving that the acquisition of the 18 has. is really needed for development projects; that the Executive Committee of the Regional Development Council of Region VII had resolved to approve and endorse, among others, the conversion of the subject property from agricultural land to residential, institutional, industrial, parks/playground and utilities; that believing in good faith that the DAR would directly award to the City the subject property, the Sangguniang Panlungsod of Canlaon City thru numerous resolutions and ordinances appropriated funds for local projects within the area since 1992.
The letter further states that then DAR HEA Clifford C. Burkley manifested that the 18 hectares have to be reconveyed to PNB in order that PNB can sell the property to the City of Canlaon; that at first, they adhered to this move and even requested for the reconveyance of the property to PNB in accordance with the advice of HEA Burkley; that lately they discovered that said mode of transfer would be very prejudicial to the interest of the city government on the following grounds: 1) that PNB cannot directly sell the property to the City without violating the provisions of RA 7202 (Sugar Restitution Act) since said law grants to previous landowners the right to redeem the property, which right is superior to that of other interested parties, thus, will trigger a possible litigation in court since the city will be forced to exercise the power of eminent domain and which mode of acquiring ownership requires a lot of time and efforts; and 2) granting that reconveyance will take place and that the previous landowner declines to redeem the property, it is most likely now that the PNB will command a price higher than that of the price set by the LBP. Lastly, the Mayor requested DAR not to push through with the reconveyance to PNB and suggested that the property be instead directly transferred with cost to the City of Canlaon by the RP thru the DAR in order to save time, money and effort.
Records reveal that subject property is a portion of a 61.2274-hectare agricultural land foreclosed by the Philippine National Bank; that pursuant to Executive Order No. 407 the PNB, represented by its President, Eduardo B. Espiritu, and the Republic of the Philippines, thru then DAR Secretary Benjamin T. Leong, executed on 13 September 1990 a Deed of Transfer covering the foreclosed agricultural properties of the Bank for redistribution to qualified farmer-beneficiaries; that said DOT requires the reconveyance of that portion or parcel of the properties not found to be suitable for agriculture; that per the letter of MARO Roy Bautista, out of the 61.2272 hectares, 21.3396 has. are covered under PD 27 and 19.8874 has. fall under CARP coverage; that there are 72 potential beneficiaries; that prior to the entry of the city government, the area was planted to sugarcane, rice and some vegetable; that at present the new public market constructed by the city government is surrounded by irrigated ricelands, while the lot intended as the site of the school, proposed bus terminal and grand stand was previously planted to sugarcane; and that the rest of the improvements are situated in an irrigable area.
It is apparent that certain material information must be established to guide in the evaluation of the instant request. We are therefore transmitting the folder to your Office, with the instruction for you to cause an investigation to:
1. Determine the status of each of the lots subject of the request of the City of Canlaon, especially as regards their suitability for agricultural production and CARP coverage;
2. Identify the lots reported by MARO Bautista to be irrigated;
3. Identify the lots already developed and the structures standing thereon; and
4. Determine such other information vital to the resolution of the request.
You are likewise instructed to render a decision on the subject request of Canlaon City, informing this Office of the action taken thereon. In this connection, we are furnishing you with a copy of Administrative Order No. 20, Series of 1992 of the Office of the President and DOJ Opinion No. 91, Series of 1995, for ready reference.
Please give the matter preferential attention.
Very truly yours,
(SGD.) LORENZO R. REYES
OIC-Undersecretary
LAFMA
Copy furnished:
His Excellency
President Fidel V. Ramos
Malacañang, Manila
Mayor Jose C. Cardenas
Canlaon City
USEC Jose C. Medina, Jr.
MARO Roy Bautista
DAR Canlaon City