September 23, 1996

DAR OPINION NO. 79-96

MEMORANDUM

FOR             :     PARO Luis B. Bueno
                               DAR, Lipa City, Batangas

SUBJECT    :     Issues And Concerns in the Implementation of Compulsory Acquisition in Western Batangas

Anent the above subject matter, hereunder are our comments on the legal issues raised therein:

1.         The warning of Batangas Agricultural Producers Association (BAPA) that the MAROs should not be issuing CLOAs, and to cancel those already issued is without basis. RA 6657 mandates the distribution of agricultural lands to qualified farmer-beneficiaries who have the willingness, aptitude and ability to cultivate and make the land as productive as possible. In this regard, a Certificate of Land Ownership Award (CLOA) is thus issued as evidence of their legal rights or ownership over the land. Meanwhile, a CLOA may only be cancelled through a court proceeding upon proper showing that the farmer beneficiary has committed an act that violates the DAR rules on cancellation, more specifically, upon the grounds provided for under AO No. 02, Series of 1994.

2.         The registered CLOAs are not considered unconstitutional as alleged by lawyers of the landowners because these are issued pursuant to RA 6657. As clearly stated under the law, the State shall encourage and undertake the just distribution of all agricultural lands, subject to the priorities and retention limits set forth under RA 6657 and to the payment of just compensation. The matter of constitutionality lies with the court to decide just like what the Supreme Court said about the validity of PD 27.

3.         As to the allegation of the landowners that titles are being issued without due process, please note that land acquisition and distribution under RA 6657 is done through the mandate of the law whether or not the landowner disagrees to part with his property, following the phasing of implementation provided for under Section 7 of  RA 6657, and regardless of whether the landowner accepts or rejects the land valuation.

4.         The refusal of the financial institution to give full assistance to the tenants unless they are members of a cooperative is not correct. Section 71 of RA 6657 provides that Banks and other financial institutions allowed by law to hold mortgage rights or security interests in agricultural lands to secure loans and other obligations of borrowers, may acquire title to these properties, regardless of area, subject to existing laws on compulsory transfer of foreclosed assets and acquisition as prescribed under Section 16 of the same Act.

Please be guided accordingly.

Very truly yours,

(SGD.) LORENZO R. REYES

OIC-Undersecretary
LAFMA

Copy furnished:

Mr. Roger Magyaya

President, KASAMA. Balayan, Batangas