Palace welcomes congressional probe on Luisita compensation

Workers load newly harvested sugarcane stalks in Barangay Mabilog in Concepcion town, Tarlac province. The area is part of Hacienda Luisita. INQUIRER FILE PHOTO

MANILA, Philippines – Malacañang on Monday welcomed a congressional inquiry on the Department of Agrarian Reform’s (DAR) alleged overcompensation of the Cojuangco family for the turnover of Hacienda Luisita.

“Ayon sa DAR, walang kalabisan ang pagbabayad sa Hacienda Luisita sapagka’t sinunod nila ang batas hinggil dito. Kinikilala namin ang karapatan ng Kamara na magsagawa ng pagsisiyasat,” Communications Secretary Herminio Coloma said in a text message to media.

(According to DAR, the amount paid for Hacienda Luisita was not excessive because they were just following the law. We recognize the right of Congress to investigate the issue.)

ACT Teachers Representative Antonio Tinio on Friday accused DAR of “overpaying” the Cojuangcos by P167 million.

“There has been an overpayment of over P167 million to the Cojuangcos…Public funds have been used to further enrich the President’s kin. Hacienda Luisita is owned by the Cojuangco clan of President Benigno S. Aquino III,” he said in a statement.

Tinio, along with Anakpawis Representative Fernando Hicap, Bayan Muna Representatives Neri Colmenares and Carlos Zarate, Gabriela Representatives Luz Ilagan and Emmi De Jesus, and Kabataan Representative Terry Ridon filed House Resolution no. 466 calling for an investigation on the issue.

Tinio said DAR paid the Hacienda Luisita Inc. a total of P471 million – P304 million for the actual cost of land and P167 million in interest.

“Compensation should have been for the actual land value of P304 million only, since DAR will not be paying them over a 10-year period as contemplated in the law. Why did DAR pay the Cojuangcos extra for the 10-year cost of money when they were paid outright and in full?” Tinio asked.

However, DAR said there is legal basis for the interest payment under Section 18 of the Comprehensive Agrarian Reform Program.

“In its final and executory decision on the Hacienda Luisita case, the Supreme Court decided that 1989 would be the date of taking of the landholding … therefore that should be the reckoning point of the determination of the land’s valuation and the amount of just compensation,” DAR Undersecretary for Legal Affairs Anthony Parungao said.