April 24, 1997

DAR OPINION NO. 46-97

Hon. Alejandro C. Alfeche

Municipal Mayor

Linamon, Lanao del Norte

Dear Mayor Alfeche:

This refers to your letter addressed to PARO Mittaman Arumpac, Al Haj, copy furnished the Office of the Honorable Secretary, Ernesto D. Garilao, manifesting your strong and firm objection to any survey that will be undertaken by this Department on the property of Ayala Corporation situated in Barangay Samburon, Linamon, Lanao del Norte.

You state that the Sangguniang Bayan of Linamon has passed and approved S.B. Resolution No. 68, Series of 1996 reclassifying the 21-hectare property of Ayala Corporation in Barangay Samburon from agricultural use to commercial/tourism uses; that such act is well within the powers of the Local Government Unit (LGU) pursuant to Section 20 of R.A. No. 7160; that likewise, foremost in the hearts and minds of the leaders of Linamon in effecting such reclassification is to attract investors who can bolster local economic vitality and provide more jobs and income to your people; that the timeliness and importance of said reclassification is rendered even more significant considering the envisioned role of the Ayala property as a commercial and recreational support facility area to the Metro Iligan Regional Agri-Industrial Center (MIRAIC); that the area as reclassified will undoubtedly open great economic opportunities and usher Linamon to its unprecedented heights of total development which will ultimately redound to the better quality of life for your beloved people; that these multi-faceted developments and benefits will never be realized if the DAR will push through with the CARP coverage of the area which is not tenanted; and that in the principles of local autonomy, Linamon is charting its own destiny in consultation with your people, that is, the destiny for total development of a progressive Linamon and happy populace, of which, it is your wish that DAR will never be an obstruction to such destiny. However, your letter failed to state that as early as 1993, a Notice of Coverage had already been issued covering the said properties of Ayala Corporation. Likewise, said properties are not included in the identified areas for MIRAIC.

Your strong and firm objection to any survey that will be undertaken to the property of Ayala Corporation situated in Barangay Samburon, Linamon, Lanao del Norte is hereby acknowledged. However, please be clarified at the outset that properties already subjected to the Compulsory Acquisition Scheme pursuant to the Comprehensive Agrarian Reform Program (CARP), the same being indisputably coverable under the provisions of R.A. No. 6657, can no longer be the subject of reclassification by Local Government Units (LGUs). Malacañang Memorandum Circular No. 54 dated 08 June 1993 provides in part that: "In addition, the following types of agricultural lands shall not be covered by said reclassification:

a)        Agricultural lands distributed to agrarian reform beneficiaries subject to Section 65 of R.A. No. 6657;

b)        Agricultural lands already issued a notice of coverage or voluntarily offered for coverage under CARP;

c)        Agricultural lands identified under Malacañang Administrative Order No. 20, Series of 1992 as non-negotiable for conversion:

 1)        All irrigated lands where water is available to support rice and other crop production;

 2)        All irrigated lands where water is not available for rice and other crop production but within areas programmed for irrigation facility rehabilitation by the Department of Agriculture (DA) and the National Irrigation Administration (NIA);

 3)        All irrigable lands already covered by irrigation projects with firm funding commitments at the time of the application for land use conversion or reclassification".

Thus, to do so or allow it (i.e., reclassification by LGUs of the aforesaid lands) would disturb vested rights, have tremendous unsettling effects in the current state of things, would serve as a bad precedent, will give rise to violent conflict and social tension, and would in the end eventually and effectively derail the successful implementation of the CARP. Reclassification of lands by LGUs is not tantamount nor synonymous to the conversion of agricultural lands into non-agricultural uses by the DAR. Under existing laws, rules and regulations, it is still the DAR which has the exclusive authority and Jurisdiction to order the conversion of agricultural lands to non-agricultural uses. From the foregoing, the only option left for us is to push through with the survey of the subject property.

As regards the attached Decision in O.P. Case No. 96-C-6424 Re: Land Use Conversion Application for Agro-Industrial Purpose of a Parcel of Land Covering 144 hectares located at San Vicente, Sumilao, Bukidnon, said case finds no application nor controlling effect in your case. Please take note that in the instant case the reclassification made by the Sangguniang Bayan on the subject property is from agricultural to commercial/tourism uses. However, in O.P. Case No. 96-C-6424, the Sangguniang Bayan of Sumilao, Bukidnon reclassified the subject property from agricultural to agro-industrial use. The latter reclassification is what the decision in the said O.P. Case had contemplated and allowed, which means that the dominant use of the area is in effect maintained as still essentially and basically agricultural. In this context, the DAR shall consider the project as supportive of the aims and objectives of the CARP which therefore merits the Department's approval, provided, however, that the agricultural area or aspect of the same shall continuously be maintained, otherwise, it will run counter to the conditions set forth and as envisioned in said reclassification.

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:

PARO Mittaman T. Arumpac

DAR Provincial Office

Tubod Highway, Iligan City