July 9, 2003
DAR OPINION NO. 09-03
MARO Henry T. Enguio
DAR Municipal Office
Kalilangan, Bukidnon
Dear MARO Enguio:
This refers to your request for clarification/opinion on the following issues, to wit:
1. Whether or not agricultural lands with CLOA could be leased and/or have them tenanted; and
2. If the farmer-beneficiary/owner had already leased out his area or have it tenanted, had he/she committed any form of violation as far as the Agrarian Reform
Program is concerned? If there be any, what is the sanction against the erring FB/owner?
You stated that some agricultural lands in Kalilangan, Bukidnon, a resettlement area in Mindanao which are issued with Certificates of Land Ownership Award (CLOAs) are being tenanted/leased; that as you try to look into their agreement, fortunately, the same follows the policies on leasehold; and that the farmer-beneficiaries leased out their awarded lands due to old age/weakness and/or the wife and the children of the FB/owner could not take over the cultivation because they are either employees in government offices or private sector.
Relating to the issues posed in your letter, the following are the pertinent provisions of DAR Memorandum Circular No. 19, series of 1996 (Guidelines and Procedures Governing the Monitoring of Violations or Circumventions Committed by the Agrarian Reform Beneficiaries (ARBs), Providing Sanctions Therefor and Filing of Appropriate Administrative, Quasi-Judicial and/or Criminal Actions), to wit: aDTSHc
"I. VIOLATIONS, OFFENSES AND SANCTIONS
A. Grounds for the Cancellation of EPs/CLOAs and the Perpetual Disqualification of Agrarian Reform Beneficiaries (ARBs)
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4. Sale, transfer, lease or other forms of conveyance by a beneficiary of the rights to use or any other usufructuary right over the land acquired by virtue of being a beneficiary, in circumvention of the provisions of Section 73 of R.A. No. 6657, P.D. No. 27 and other agrarian laws. However, if the land has been acquired under P.D. No. 27/E.O. No. 228, ownership may be transferred upon full payment of amortization by the beneficiary. (Section 6 of E.O. No. 228 as implemented by A. O. No. 8, series of 1995)
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In addition, the above sanctions are without prejudice to criminal prosecution of the errant ARB pursuant to existing penal laws, rules and regulations, as the circumstances so warrant and to the PARAD's, RARAD's and/or DARAB's decision in the appreciation of the case.
II. OPERATING PROCEDURE
1. DAR Municipal Office (DARMO)
a. The concerned DARMO personnel, with the assistance of the BARC, shall conduct quarterly inspection/checking of farmholdings of ARBs under their jurisdiction and determine whether or not the original ARBs or their direct compulsory heirs still own and continue cultivating the landholding awarded to them.
b. In the event that an ARB is found to have committed any of the foregoing offenses, prepare a report and concomitant recommendations (Use CARP Form No. 1, Annex "A") and transmit the same, together with the supporting documents to the Provincial Agrarian Reform Officer (PARO) for disposition. (CARP Form No. 2, Annex "B")."
Likewise, DAR Administrative Order No. 2, series of 1994 [Rules Governing the Correction and Cancellation of Registered/Unregistered Emancipation Patents (EPs) and Certificates of Land Ownership Award (CLOAs) Due to Unlawful Acts and Omissions or Breach of Obligations of Agrarian Reform Beneficiaries (ARBs) and for Other Causes] provides, quote:
"II. SCOPE
These rules shall apply to the Registered CLOAs from the time and date of issuance thereof by the DAR up to the tenth year, when the legal restriction on its conveyance or alienation by the recipient agrarian reform beneficiaries ends in accordance with Sec. 27, R.A. No. 6657. However, if the ARB concerned had not yet fully paid the cost of the land or his obligations pertaining to the land in case of public lands, beyond the tenth year from the date of issuance of the CLOA, then these rules shall continue to apply." ESDcIA
Given the above provisions, it is clear that ARBs, within the 10-year prohibitory period as provided in Section 27 of R.A. No. 6657 (or even beyond said period if the awarded lands are not yet fully paid), are under obligation to cultivate the landholdings awarded to them and not to lease or have them tenanted by other people who are not members of their immediate household.
For further information, attached are copies of DAR Administrative Order No. 2, series of 1994 and DAR Memorandum Circular No. 19, series of 1996.
This opinion is rendered on the basis of the facts presented. However, if upon investigation it will be disclosed that the facts are different, then this opinion shall be considered null and void.
Please be informed and guided accordingly.
Very truly yours,
(SGD.) RICARDO S. ARLANZA
Undersecretary for Policy, Planning and Legal Affairs Office