December 12, 1996
DAR OPINION NO. 102-96
Atty. Maximo H. Simbulan, IV
c/o Araneta & Associates Law Office
27th Floor Galleria Corporate Center
EDSA corner Ortigas Avenue
Quezon City
Dear Atty. Simbulan:
This has reference to your letter dated 24 September 1996 seeking for the modification of Memorandum dated 3 November 1994 of PARO Erlinda Pearl V. Armada of Bulacan addressed to the President of Land Bank of the Philippines requesting for the opening of a trust account in the name of John Gokongwei, Jr. in connection with the acquisition of 97.0515 hectares of agricultural land situated at Balaong, San Miguel, Bulacan.
As gleaned from your letter you wish to pursue the withdrawal of the deposits made in the name of John Gokongwei, Jr. by the Department of Agrarian Reform in the amount of Three Million Sixteen Thousand Sixty Two pesos and Ninety-Four centavos (P3,016,062.94) representing the valuation of his agricultural land. This request is an offshoot of the Supreme Court decision dated 6 October 1995 and reiterated in Resolution dated 5 July 1996 in the case of "Department of Agrarian Reform vs. Court of Appeals, Pedro L. Yap, Heirs of Emiliano F. Santiago, Agricultural Management & Development Corporation," declaring that payment shall only be made in the form of "cash or LBP bonds", a mode of payment recognized under Section 16 (e) of R.A. 6657 and not by means of "trust deposits". Corollary, the Supreme Court in the abovementioned case declares that the DAR-designated bank is ordered to allow the petitioners to withdraw the above deposited amounts without prejudice to the final determination of just compensation by the proper authorities.
Please be informed that we are in accord with your view that withdrawal of deposit made in the name of John Gokongwei, Jr. should be allowed. It is no longer open to doubt or controversy that withdrawal is sanctioned by law because no less than the Supreme Court in the abovementioned case allows the withdrawal of deposit. In compliance to the said ruling, DAR Administrative Order No. 2, Series 1996 (copy attached) was issued wherein it is so provided that, "All trust accounts issued pursuant to Administrative Order No. 1, S. 1993 covering landholdings not yet transferred in the name of the Republic of the Philippines as of July 5, 1996 shall immediately be converted to deposit accounts in the name of the landowners concerned.
All Provincial Agrarian Reform Officers and Regional Directors are directed to immediately inventory the claim folders referred to in the preceding paragraph, wherever they may be found and request the LBP to establish the requisite deposit under this Administrative Order and to issue a new certification to that effect. The original Certificate of Trust Deposit previously issued should be attached to the request of the DAR in order that the same may be replaced with a new one.
All previously established Trust Deposits which served as the basis for the transfer of the landowner's title to the Republic of the Philippines shall likewise be converted to deposits in cash and in bonds. . . ."
We hope to have clarified matters with you.
Very truly yours,
(SGD.) LORENZO R. REYES
OIC-Undersecretary
LAFMA
Copy furnished:
The Provincial Agrarian Reform Officer
Provincial Agrarian Reform Office
Baliuag Bulacan
The President
Land Bank of the Philippines
Makati City