DAR wants SC to intervene in selection of audit firm for Hacienda Luisita

Agrarian Reform Secretary Virgilio “Gil” delos Reyes. PHOTO FROM GOV.PH

MANILA, Philippines—The Department of Agrarian Reform has sought the intervention of the Supreme Court in breaking the impasse over the selection of an accounting firm that would handle the special audit on financial records of Hacienda Luisita Inc. and Centenary Holdings Inc.

Through the office of the Solicitor General, DAR on Tuesday filed a motion in the high court seeking to clarify issues arising from the special audit where parties to the Hacienda Luisita case remain in disagreement over which firm to choose. The Alyansa ng Manggagawang Bukid sa Asyenda Luisita (Ambala) had sought the disqualification of two of three interested accounting firms, a move which called for a vote on May 17 but did not result in a consensus.

In a statement, DAR Secretary Virgilio Delos Reyes said the special audit cannot proceed unless all parties agree on an accounting firm. The special audit on HLI and CHI would pertain to the gross proceeds from the conversion of two lots, with an area of 500 hectares, and the expropriation of a portion of Hacienda Luisita for the Subic-Clark-Tarlac Expressway (SCTEx).

Parties to the Hacienda Luisita case are the HLI and various farmers’ organizations, including Ambala, representing the farm workers of the country’s biggest sugar estate. The three accounting firms which have expressed interest in taking on the special audit are: Reyes, Tacandong and Company; Ocampo Mendoza, Leung, and Lim; and San Agustin and Company.

The high court had previously ordered the engagement of the services of a reputable accounting firm to verify the P1,330,511,500 alleged proceeds from the sale of the three lots and determine if this was used for legitimate corporate expenses by the companies. Any unused balance and disallowed expenditure found in the special audit will then be distributed to the 6,296 “original” farm worker-beneficiaries.

Delos Reyes said: “We wish to put on record that it is the disagreement among parties concerned, and not the DAR, that is the cause of the delay in the audit process.”

He said the motion for clarification with the Supreme Court is an effort by DAR to keep the process of distributing Haciendal Luisita moving.

DAR Undersecretary for legal affairs Anthony Paruñgao said the clarification sought by the agency in particular is on the phrase “approved by the parties.” He explained that what the department wants to know is if it meant unanimity or a mere majority vote from the parties.

Also, he said, the agency wants the high court to rule on whether the HLI can be excluded from the selection process and on whether the role of the agency is limited to facilitating the process for the engagement of an accounting firm and has no authority to decide or act on motions filed by any party.

Likewise DAR asked the Supreme Court for a clarification on the nature and extent of the special audit and requested that its specified arrangement be reviewed and modified to ensure a speedy and effective auditing firm selection process.