June 2, 1997

DAR OPINION NO. 61-97

Atty. Christopher A. Mamauag

Trust Attorney

Asset Privatization Trust

North Davao Mining Corp. Bldg.

104 Gamboa St., Legaspi Village

Makati City

Dear Atty. Mamauag:

This has reference to your letter, reiterating your request for reconveyance to the Asset Privatization Trust (APT) the former properties of Moonwalk Housing and Development Corporation (NHDC) located at Bacoor, Cavite, which you have been informed to have been the subject of Compulsory Acquisition for CARP purposes by the Municipal Agrarian Reform Officer (MARO) of Bacoor, Cavite.

You state that the above-mentioned properties are owned by the National Government through its trustee, the APT, and it should not be the subject of compulsory acquisition; that Executive Order No. 407, issued on June 14, 1990, clearly requires that the properties of the APT which are suitable for agricultural purposes may only be transferred to the DAR through the execution by the former of a Deed of Transfer, to which, based on your records, there was never a Deed of Transfer executed between the APT and the DAR covering the former properties of MHDC in Bacoor, Cavite; that it is your position that all APT properties may not be acquired for CARP purposes through Compulsory Acquisition inasmuch as there is a specific law which governs the transfer of APT properties to the DAR, i.e., Executive Order No. 407; and that any other mode of acquisition of APT properties other than the voluntary execution of a Deed of Transfer would be illegal and void ab initio.

Please be clarified at the outset that compulsory acquisition of landholdings is a scheme done at all agricultural lands which become due for coverage following the phasing of CARP implementation under Section 7 of R.A. No. 6657 (The Comprehensive Agrarian Reform Law). It must be noted at this juncture that agricultural lands subject for coverage include those owned by private entities and those owned or held by government agencies, corporations and instrumentalities (Section 4 (c) and 7 (par. 2), R.A. No. 6657). Since the APT is a government agency or instrumentality, it is with more reason that its properties should be subjected to CARP coverage. The application of E.O. No. 407 in the situation is specifically for the immediate transfer to the DAR of all the government's landholding suitable for agriculture and, consequently in turn, for the immediate distribution thereof to qualified beneficiaries under CARP. This is categorically emphasized in the said Executive Order itself under Section 1 thereof and in seventh (7th) "Whereas Clause", quote: "Whereas, the implementation of the Comprehensive Agrarian Reform Program particularly its land acquisition and distribution to qualified farmer-beneficiaries must be accelerated so that its fruits could be enjoyed by its beneficiaries at the soonest possible time." It is thus mandated by law that the government should divest itself the soonest of its agricultural landholdings for the paramount benefit of agrarian reform beneficiaries as mentioned above which, in effect, shall eventually serve as a fitting example for private landowners to emulate and follow. In the instant case, to reconvey the subject agricultural properties to APT and then back again to the DAR at this belated point in time through a Deed of Transfer just to comply with the technicalities of law would be extremely impractical and tedious, which will result in the further delay of the acquisition and distribution thereof contrary to the intent of the law that the same shall be acquired and distributed immediately upon the effectivity of R.A. No. 6657, and with the implementation to the completed within four (4) years from said effectivity, i.e., June 15, 1988 (Section 7 (par. 2), R.A. No. 6657 and 3rd "Whereas Clause", Executive Order No. 407). We believe that in this particular case, it should rather be the spirit and not the letter of the law (i.e., E.O. No. 407) that must prevail. Accordingly, it is submitted that the DAR could go ahead with the compulsory acquisition of the agricultural landholdings in question for failure of the APT to immediately execute a Deed of Transfer as clearly enjoined under Section 7 (par. 2) of R.A. No. 6657 and Section 1 of Executive Order No. 407.

Thank you for communicating with us.

Very truly yours,

(SGD.) ARTEMIO A. ADASA, JR.

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

Dir. Gloria J. Fabia

BLAD