Congress eases burden of agrarian reform beneficiaries, Bayanihan To Heal As One Act condones interest payment and restructures principal obligation of ARBs

Department of Agrarian Reform (DAR) Secretary John R. Castriciones lauds the recent passage of Republic Act (R.A.) No. 11494, An Act for COVID-19 Response and Recovery Providing Interventions and Providing Mechanisms to Accelerate the Recovery and Bolster the Resiliency of the Philippine Economy, providing Funds therefor, and for Other Purposes.

According to Secretary Castriciones, “It is a critical juncture in the annals of the legislative history of the Comprehensive Agrarian Reform Program (CARP) in the country. It is one of the strongest manifestations of support given by Congress to the second phase of agrarian reform of President Rodrigo Roa Duterte. It is one concrete benefit that shall be felt by the agrarian reform beneficiaries (ARBs) who stand in the frontlines in the current pandemic to ensure the continuous supply of agricultural products in the areas affected by the COVID-19. The measure is most timely as the DAR is launching its projects to ensure the productivity of the CARP-awarded lands, the parcelization of collective Certificates of Land Ownership Award (CLOAs), and the validation of the ARB national listing.”

Section 4, Paragraph (m) of the Bayanihan to Recover As One Act eases the financial burden imposed by law on the agrarian reform beneficiaries (ARBs).

Previously, R.A. No. 6657 (The Comprehensive Agrarian Reform Law or CARL) imposes upon ARBs the obligation to pay for the agricultural lands awarded to them by annual amortizations for thirty (30) years from the issuance of the CLOA at an interest rate of six percent (6%) per annum.

Under the Bayanihan Law 2, the principal obligation is restructured. The six percent (6%) annual interest is condoned and all previous payments for interest are credited as principal payment. This is an unprecedented move on the part of Congress since the passage of the CARL on 15 June 1988.

Despite the fact that the Bayanihan Law 2 is only in full force and effect until the next adjournment of the Eighteenth Congress on 19 December 2020, the condonation of the six percent (6%) annual interest and the restructuring of the principal obligation of the ARBs become a permanent set of statutory benefits according to DAR Undersecretary for Legal Affairs Atty. Luis Meinrado C. Pañgulayan.

In response to a query of Undersecretary Pañgulayan on the legislative intent behind Section 4, Paragraph (m) of the Bayanihan to Recover As One Act, the Bicameral Committee headed by Senator Juan Edgardo “Sonny” Angara, Chair of the Senate Panel, and Representative Luis Raymond “LRay” Villafuerte, Chair of the House Panel, in a letter dated 04 September 2020, assured the beneficiaries, through the DAR, that the provision on the condonation of interest and the restructuring of the principal obligation are in fulfillment of the agrarian reform mandate, thus:

“Section 4 (m) provides for condonation and restructuring and not a mere moratorium on loans. Condonation and restructuring, by their nature, permanently alter the obligation of the parties in a given contract. Thus, the effects and impact of Section 4 (m) on the life of the agrarian reform beneficiaries extend beyond the validity period of the Bayanihan to Recover as One Act.”

‘It is worth reiterating that Section 4 (m) authorizes restructuring of the principal amount without interest thereon and condoning interest payments such that previous payments made shall be credited to principal payment. Clearly, these acts show that the ultimate goal of Section 4 (m) is to realize the promise of agrarian reform, i.e., land to the landless. Thus, any interpretation of the said provision should be towards the attainment of said aspiration.”

According to Undersecretary Pañgulayan, “The clarifications made by Sen. Juan Edgardo “Sonny” Angara and Rep. Luis Raymond “LRay” Villafuerte establishes that Section 4, Paragraph (m) of Bayanihan Law 2 amends Section 26 of R.A No. 6657 previously amended by Section 11 of R.A No. 9700.”

Land Bank of the Philippines (LBP) Senior Vice President Alex Lorayes made an initial assessment of the positive impact of the Bayanihan Law 2 on the ARBs: “The outstanding Agrarian Reform Receivables (ARR) on the principal balance as of July 31, 2020 is P14.54-B. The principal amortization of those currently outside the ARR in the amount of P44.21-B covering an area of 780,759 hectares shall start after the issuance of individual titles under the parcelization project of the DAR. The restructuring of the outstanding principal without any interest thereon will benefit 273,830 ARBs covering an area of 433,977 hectares. Total interest payment for credit to principal is P1.05-B. This will also benefit around 273,830 ARBs for awarded lands covering an area of 443,978 hectares. Total interest receivable as of July 31, 2020 is P6.66-B.”

DAR Secretary Castriciones further adds that he shall be convening the Presidential Agrarian Reform Council Executive Committee (PARC EXCom) to guide the Department in the formulation of the implementing rules and regulations of Section 4 Paragraph (m) of R.A. No. 11494.

Kongreso inibsan ang pinansyal na pasanin ng mga magsasakang benepisyaryo 

Bayanihan To Heal As One Act nagbigay-tawad sa mga bayaring interest at inayos ang principal na obligasyon ng mga agrarian reform beneficiaries (ARBs).

Pinuri ni Department of Agrarian Reform (DAR) Secretary John R. Castriciones ang ipinasa kamakailan ng Kongreso na Republic Act No. 11494, an Act for Covid-19 Response and Recovery Providing Interventions and Providing Mechanisms to Accelerate the Recovery and Bolster the Resiliency of the Philippine Economy, providing Funds therefore, and for other purposes.

“Ito ay isang napakahalaga at napapanahong batas sa kasaysayan ng lehislatura ng Comprehensive Agrarian Reform Program (CARP) ng bansa. Isa sa pinakamalakas na pagpapakita ng suporta ng Kongreso para sa ikalawang yugto ng agrarian reform sa ilalim ng administrasyon ni Pangulong Rodrigo Roa Duterte. Isang kongkretong benepisyo na mapapakinabangan ng mga agrarian reform beneficiaries (ARBs) na tumatayong mga frontliners sa kasalukuyang pandemic upang masiguro ang patuloy na suplay ng mga produktong pang-agrikultura sa mga lugar na naapektuhan ng Covid-19. Ang hakbang na ito ay napapanahon sa kadahilanang ang DAR ay may isinusulong na proyekto upang maseguro ang pagiging produktibo ng mga lupang naipamahagi sa ilalim ng CARP, ang parselisasyon o paghiwa-hiwalay ng mga collective Certificates of Land Ownership Award (CLOAs) at ang pagpapatunay ng pambansang listahan ng mga ARBs.” ani Castriciones.

Ang Seksyon 4, Talata (m) ng Bayanihan to Recover As One Act ay magpapagaan sa pasaning pinansiyal na ipinataw ng batas sa mga agrarian reform beneficiaries (ARBs).

Sa ilalim ng RA No. 6657 (The Comprehensive Agrarian Reform Law o CARL) ay nagpapataw sa mga ARBs ng obligasyon upang bayaran nila ang mga lupang agrikultural na kanilang tinanggap nila sa pamamagitan ng taunang bayad sa loob ng tatlumpung (30) taon simula ng ipinagkaloob ang CLOA na nag-iinteres ng anim (6) na porsiyento kada taon.

Sa ilalim ng Bayanihan Law 2, ang prinsipal na obligasyon ay binago. Ang anim (6) na porsiyentong interest kada taon ay pinatawad na at lahat ng naunang nabayaran sa interest ay maitatala bilang bayad savprincipal obligasyon. Ito ang maituturing na isang kauna-unahan at makabuluhang aksyon sa bahagi ng Kongreso simula nang naisabatas ang CARL noong Hunyo 15, 1988.

“Sa kabila ng pagkakaroon pa lamang ng bisa ng Bayanihan Law 2 na nakatakda sa Disyembre 19, 2020, ang pagbibigay-tawad sa anim (6) na porsiyentong taunang interes at pag-restructure sa principal na obligasyon ng mga ARBs ay magiging permanente na ayon sa batas,” ayon kay Undersecretary for Legal Affairs Office Atty. Luis Meinrado Pangulayan.

Bilang kasagutan sa tanong ni Pangulayan sa hangaring legislayon sa likod ng Seksyon 4, Talata (m) ng Bayanihan to Recover As One Act, ang Bicameral Committee na pinamumunuan ni Senator Juan Edgardo “Sonny” Angara, Chair ng Senate Panel, at Representative Luis Raymond “LRay” Villafuerte, Chair ng House Panel, sa liham noong Setyembre 4, 2020, ay sinisiguro na ang mga benepisyaryo, sa pamamagitan ng DAR, na ang probisyong nagbibigay-tawad sa anim (6) na porsiyentong taunang interes at pag-restructure sa principal na obligasyon ay pagsasakatuparan sa mandato ng agrarian reform, kung kaya:

“Section 4 (m) ay pagbibigay-tawad at pagbabago, at hindi lamang isan moratoryum o pansamantalang pag-antala sa pagbabayad ng mga utang. Pagbibigay-tawad at pagbabago, base sa depinisyon ng kanilang uri, ay permanenteng magbabago ang obligasyon ng bawat partido sa kanilang kontrata. Kaya, ang epekto ng Seksyon 4 (m) sa buhay ng mga agrarian reform beneficiaries ay nagpapalawig sa kabila pa ng validity period o bisa ng Bayanihan to Recover As One Act.”

‘Mahalagang ulitin na ang Seksyon 4 (m) ay nagbibigay pahintulot sa pagbabago ng mga halaga sa principal obligasyon ng walang interes at pagbibigay-tawad sa mga binayarang interes kung saan ang una nang ibinayad ay maitatala bilang bayad sa principal na obligasyon. Malinaw na ito ay nagpapakita na ang hangarin ng Seksyon 4 (m) ay makamit ang pangako ng agrarian reform, hal., lupa para sa mga walang lupa. Kaya anu mang interpretasyon sa nasabing probisyon ay patungo sa mithiing ito.”

Ayon kay Undersecretary Pangulayan, “ang paglilinaw nila Senator Juan Edgardo “Sonny” Angara at Representative Luis Raymond “LRay” Villafuerte, ay pagtatalaga na ang Seksyon 4 Talata (m) ng Bayanihan law 2 ay nag-aamyenda sa Seksyon 26 ng RA No. 6657 na dating inamyendahan ng Section 11 ng RA No. 9700.”

Gumawa si Land Bank of the Philippines Senior Vice President Alex Lorayes ng paunang assessment ng positibong epekto ng Bayanihan Law 2 sa mga ARBs: “Ang outstanding Agrarian Reform Receivables (ARRs) sa principal balance ng July 31, 2020 ay P14.54-bilyon. Ang principal amortization ng mga nasa labas ng ARR ay nasa halagang P44.21-bilyon na sumasakop sa 780,759 ektaryang lupa kung saan magsisimula pa lang sila ng kanilang bayarin pagkatapos ma-isyu sa kanila ang indibidwal na titulo sa ilalim ng parcelization project ng DAR. Ang pag-restructure ng outstanding principal na wala ng interes ay pakikinabangan ng 273,830 ARBs na may sinasakupang 433,977 ektarya. Ang total interes na bayarin para sa credit to principal ay P1.05-bilyon. Ito ay pakikinabangan ng 273,830 ARBs para sa mga naibigay na lupa na sumasakop sa 443,978 ektarya. Ang total na interest receivable ay P6.66-B as of July 31, 2020.”

Sinabi ni Secretary Castriciones na pupulungin niya ang Presidential Agrarian Reform Council Executive Committee (PARC Exe Com) upang gabayan ang Departamento sa paggawa at pormulasyon ng implementing rules and regulations ng Seksyon 4 Talata (m) ng RA No. 11494.