March 28, 1994
DAR OPINION NO. 24-94
Mr. Basilio B. Hao
Executive, Vice-Chairman
PECODASI
c/o Steelbelt Integrated Industries
Mabini Extension, Digos
Davao del Sur
Dear Mr. Hao,
This has reference to PECODASI's Resolution No. 11-93 which you sent to the Office of the President and has been indorsed to DAR for appropriate action by Presidential Staff Director Vicente A. Galang. In said Resolution, you request that the President issue an Executive Order approving the conversion for industrial purposes of some 1,300 hectares of agricultural lands on the basis of the revised town plan approved by the Housing and Land Use Regulatory Board on 18 May 1992.
Please be informed that the conversion of said 1,300-hectare lands must be covered by a DAR Order of Conversion. Under Section 4(j) of E.O 129-A, Series of 1987, the DAR is mandated to approve or disapprove applications for conversion, restructuring or readjustment of agricultural lands into non-agricultural uses. Under Section 5(1) of the same E.O., the DAR has exclusive authority to approve or disapprove conversion of agricultural lands for residential, commercial, industrial and other land uses as may be provided by law. Moreover, under Section 50 of RA 6657, the DAR is vested with primary jurisdiction to determine and adjudicate agrarian reform matters and has exclusive original jurisdiction over all matter involving the implementation of agrarian reform.
The HLURB approval of the revised town plan of Sta. Cruz, Davao del Sur is not sufficient legal basis for the conversion of the property from agricultural to industrial use because the same was made only on May 18, 1992. An application for conversion must be filed with the DAR, which shall be evaluated on the basis of DAR Administrative Order Nos. 1 and 2, Series of 1990 (copies attached). Please note, however, that no application for conversion shall be given due course if a DAR Notice of Acquisition has been issued over the property involved. Furthermore, under Administrative Order No. 20 of the Office of the President, irrigated or irrigable lands covered by irrigation projects with firm funding commitments at the time of application shall not be subject to and are non-negotiable for conversion.
We hope to have clarified matters for you.
Very truly yours,
(SGD.) HECTOR D. SOLIMAN
Assistant Secretary
Legal Affairs Office
Copy furnished:
Clifford C. Burkley
Head Executive Assistant
DAR, Quezon City
Re: Doc. No. 94030547