AUDIT OBSERVATION MEMORANDUM NO. 2

AUDIT OBSERVATION MEMORANDUM NO. 2. The Municipal Government of Bulan, Sorsogon failed to secure/apply for Land Use Conversion and Exemption Clearance from Agrarian Reform Regional Office of the lot donated by Mrs. Anecita O. De Castro property with an area of one (1) hectare on the site of Bulan Bus Terminal located at Brgy. Fabrica, Bulan, Sorsogon in violation of DAR Administrative Order (AO) No. 1 series of 2002 and AO NO. 6, series of 1994 as amended by AO No. 4, series of 2003, respectively.

DISCUSSION:

Comprehensive Rules on Land Use Conversion pursuant to Section 1 of AO No. 1, series of 2002 provides that: “The conversion of agricultural lands to non agricultural uses” shall be governed by the policy that (1.1) “that state shall preserve prime agricultural lands to ensure food security, (1.2) xxx and (1.3) conversion of agricultural lands to non-agricultural may be allowed only when the conditions prescribed under R.A. 6657 and/or R.A. 8435 are present and complied with.”

Section 4.4.4 of AO No. 1 series of 2002 states that “all agricultural lands with irrigation facilities” are areas non-negotiable for conversion. The applicant shall submit in sixtuplicate the following documents in six (6) separate bound folders [one (1) original set and five (5) photo copy sets] with table of contents and page number of all documents including photographs, sequentially numbered, except for maps and development plans, etc.

a) Official receipt showing proof of payments of filing fee and inspection cost;

b) Duly accomplished application for conversion subscribed and sworn to before a notary public or any person authorized to administer oaths;

c) Project feasibility study;

d) Certification from DENR Community Environment and Natural Resources Office (CENRO) that the landholding has been classified as alienable and disposable;

e) Socio-Economic Benefit – cost study of the proposed project;

f) That applicant has not undertaken and shall not undertake premature development prior to issuance of a conversion order;

g) Certification from the HLURB Regional Office on the natural zoning or classification of the land subject of the application on the approved comprehensive land use plan citing (1) the municipal zoning ordinance number; (2) resolution no. and date of approval by HLURB or the Sangguniang Panlalawigan concerned;

h) The ocular inspection shall be conducted on the property by Regional Center for Land Use Policy Planning and Implementation (RCLUPPI) / Center for Land Use Policy Planning and Implementation (CLUPPI) – to verify the veracity of information contained in the application for land use conversion and existence of farmers agricultural lessees, share tenants, farmer workers, actual tillers and/or occupants on the subject land.

Administrative Order No. 4, series of 2003 – Rules on Exemption of Lands from CARP Coverage under Section 3 (c) of R.A. No. 6657 and DOJ Opinion No. 44 Series of 1990 in the case of Natalia Realty versus DAR (12 August 1993, 225 SCRA 278) opines that with respect to the conversion of agricultural lands covered by R.A. 6657 to non-agricultural uses the authority of the DAR to approve such conversion may be exercised from the date of its effectivity, on June 15, 1988.

In order to implement the intent and purpose of the provisions of the aforecited laws these guidelines are hereby issued.

For public notice, the applicant . . .

· Announcement that the applicant is applying for exemption;

· Complete name(s) of the landowner(s) and applicant(s);

· Total area and exact location of the exemption proposal;

· Date of filing of the applicant for exemption;

· Deadline of posting of billboard;

· Deadline for filing of protest;

· Address of DAR offices where resident oppositors may conveniently file their protests;

· Address of the approving authority;

· Date of ocular inspection, which shall be left blank, and which the applicant shall fill up after the MARO determines its exact date, but not later than seven (7) days before ocular inspection day; and

· Date approval or denial of the application, which shall be left blank, and which MARO or applicant or any party-in-interest shall fill up after approval or denial of the application.

A letter request of confirmation dated August 20, 2008, was sent to Regional Director of DAR Agrarian Reform Regional Office, Region V, Lakandula Drive, Legaspi City. In reply to our letter of confirmation, a certification was issued dated Sept. 1, 2008, received by this end on Sept. 05, 2008, which showed that based on their records, no application for Land Use Conversion pursuant to DAR AO No. 1, series of 2002 nor an Application for Exemption Clearance pursuant to AO No. 6 series of 1994 as amended by AO No. 4 series of 2003 were filed nor pending that office pertaining to Bulan Bus Terminal, which lot was donated by Ms. Aniceta O. De Castro property located at Brgy. Fabrica, Bulan, Sorsogon.

COA’S RECOMMENDATION:

Require the Municipal Government of Bulan, Sorsogon to justify their failure to secure/apply for land use conversion and exemption clearance from DAR Regional Office pursuant to the provision of R.A. 6657 and 8435in so far as AO No. 1 series of 2002 and AO No. 4 series of 2003, amending AO No. 6 series of 1994.

LGU’S COMMENT:

The Local Government of Bulan, Sorsogon implemented the project on the particular site at Barangay Fabrica banking on the provisions of the Municipal Zoning Ordinance, Municipal Ordinance No. 99-012, series of 1999. Section 7 states that “. . .built-up zones shall include Agricultural Zones, Socialized Housing Zones, Strategic Agriculture and Fishery Development Zones, Industrial Zones, Forest Zones, Proposed Railway Line Road Networks, Rivers or Creeks, Municipal Boundaries of Magallanes and Matnog and Ticao Pass. Built-Up Zones shall be in the Blocks or strips. Potion of built-up area for barangays along the highway of Zone 7 to Cadandanan in the North and Fabrica to Sta. Teresita in the East can be utilized for residential and commercial purposes, except for irrigated rice fields. . .”

The lot occupied by the Bulan Integrated Bus Terminal had been idle, untilled and unirrigated for more than five (5) years prior to its transfer to the LGU.

Nevertheless, the local government has instructed the offices concerned to apply for Land Use Exemption Clearance with the Agrarian Reform Regional Office.