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Pursuant to Section 20 of Republic Act (R.A.) No. 6657, otherwise known as the "Comprehensive Agrarian Reform Law of 1988" landowners, (LOs) of agricultural lands subject of acquisition under the Comprehensive Agrarian Reform Program (CARP may enter into a voluntary arrangement for the direct transfer of their lands to agrarian reform beneficiaries (ARBs).  Section 21 of the same Act provides that direct payment may be made in cash or in kind by the ARB to the LO under the terms to be mutually agreed upon by both parties and which will be binding upon registration with and approval by the Department of Agrarian Reform (DAR).

Section 44 of R.A. No. 6657, as amended by R.A. No. 7905, otherwise known as "An Act to Strengthen the Implementation of the Comprehensive Agrarian Reform Program and for Other Purposes", provides that the Provincial Agrarian Reform Coordinating Council (PARC) the adoption of a direct payment scheme between the landowner and the farmer or farmworker.

In the meeting of the PARC Executive Committee on 19 April 1995, the following resolution was passed:

"Resolved, that the revised rules and procedures governing the acquisition of private agricultural lands subject of voluntary land transfer or direct payment scheme (VLT/DPS) pursuant to R.A. No. 6657 be approved."

These rules and regulations are hereby issued pursuant to the mandate of R.A. No. 6657, as amended by R.A. No. 7905, and the PARC Executive Committee Resolution No. 95-57-2, dated 19 April 1995, in order to provide effective means of implementing and monitoring the VLT/DPS mode of acquisition and distribution.  The PARC Secretariat, through the PARCCOM shall monitor the implementation of these guidelines.


ARTICLE I
PRELIMINARY PROVISIONS

SECTION 1. Coverage - These guidelines shall cover private agricultural lands subject to acquisition through VLT/DPS.

SECTION 2. Statement of Policies - The implementation and monitoring of the VLT/DPS shall be governed by the following policies:

a.  The ARBs under the VLT/DPS are determined by the DAR to be the same individuals who would be eligible to purchase the lands in case the government, through Compulsory Acquisition (CA) or Voluntary Offer to Sell (VOS), acquired the land for distribution under the agrarian reform program.

A child of the LO may only enter into a VLT/DPS agreement with his/her parent-landowner provided he/she is a tenant in his/her own right prior to 15 June 1988.  On the other hand, the child of the LO who qualifies as a beneficiary of the CARP pursuant to Section 6 of R.A. No. 6657 shall be awarded the land of his/her parents in accordance with Memorandum Circular (M.C.) No. 04, Series of 1994 titled, "Clarificatory Guidelines Concerning the Award to Children under Section 6 and 22 of R.A. No. 6657".

b.  The ARB who opts for VLT/DPS shall be afforded priority in the processing of documents for the immediate issuance of Certificate of Land Ownership Award (CLOA).  In the event that the ARBs of the same landholding do not wish to enter into a VLT/DPS, the landholding shall be processed under standard procedures pursuant to Administrative Order (A.O.) No. 02, Series of 1996 titled, "Revised Rules and Procedures Governing the Acquisition of Agricultural Lands Subject of Voluntary Offer to Sell and Compulsory Acquisition Pursuant to Republic Act No. 6657", as amended by A.O. No. 01, Series of 1998, A.O. No. 04, Series of 2000 and A.O. No. 01, series of 2003.

c.  In general, lands shall be distributed directly to individual ARBs. In case it is not economically feasible and sound to divide the land, then it shall be owned collectively by the ARBs who shall form a cooperative or association.  The distribution of lands under collective ownership shall be in accordance with the guidelines on the identification, screening and selection of, and distribution to ARBs of private agricultural lands under R.A No. 6657.

d.  The terms and conditions of the VLT/DPS shall not be less favorable to the ARB than those of the government's standing offer to purchase from the LO and to sell to the beneficiary, if such offers have been made and are fully known to both parties, including the interest to be paid thereon, if any.  The interest should not be more than six perrcent (6%) per annum pursuant to Section 26 of R.A. No. 6657.  It is incumbent upon the DAR to ensure that the ARBs understand and are made fully aware of the options available to them in land distribution.

If the subject land has not yet been valued, the determination of the acceptability of the valuation of subject land under VLT/DPS shall be based on the initial valuation of previously valued claims by the Land Bank of the Philippines (LBP) of similar/comparable lands in the area pursuant to A.O. No. 05, Series of 1998 titled, "Revised Rules and Regulations Governing the Valuation of Land Voluntarily Offered or Compulsorily Acquired Pursuant to Republic Act No. 6657".

e.  Direct payment in cash or in kind may be made by the ARB to the LO under the terms mutually agreed upon by them and which shall be binding upon registration with and approval by the DAR, provided the terms of payment shall not be less favorable to the ARBs. DAR's approval shall be presumed unless a notice of disapproval is received by the ARB and/or the LO within thirty (30) days from the date of receipt of VLT/DPS documentation folder by the DAR Regional Office (DARRO).

In the event that they cannot agree on the price of land, the procedure for compulsory acquisition as provided in Section 16 of R.A. No. 6657 shall apply, whenever applicable.

f.  The terms and conditions of VLT/DPS shall include the immediate transfer of possession and ownership of the land in favor of the identified beneficiaries, provided that the LO shall be given reasonable time to harvest the standing crops unharvested pursuant to Section 28 of R.A. No. 6657.  CLOAs shall be issued to the ARBs with the proper annotations (e.g. annotation of lien in favor of the LO and that the said landholding is covered by a Deed of Voluntary Land Transfer).  However, tax delinquencies incurred by the LO (natural or juridical) prior to VLT/DPS arrangement shall be paid before the registration of the Deed of Voluntary Land Transfer/Direct Payment Scheme (DVLT/DPS).

In case of financial incapacity of the LO to pay his realty taxes, he/she may enter into an arrangement with the ARB, with the conformity of the Municipal Treasurer, for the remittance of the ARB amortization to the Municipal Treasurer until the unpaid realty taxes of the landowner plus interest in arrearages accrued prior to 15 June 1988 pursuant to Department of Finance (DOF) Local Finance Circular Nos. 2-94 dated 7 March 1994 and 2-02 dated 30 July 2002, if any, have been fully paid. Thereafter, the ARB amortization shall be remitted to the LO.  This arrangement shall be included in the VLT/DPS agreement.

On the basis of this arrangement, the Municipal Treasurer concerned shall issue a realty tax clearance for the registration of the CLOAs.

Realty tax payments shall be the responsibility of the concerned ARBs from the time the DAR makes an award of the land to them, pursuant to Section 24 of RA No. 6657.  The payment shall be made on the basis of the assessment of the Municipal Assessor's Office.

g.  In case the beneficiary defaults an aggregate of three (3) annual land amortizations due to force majeure or fortuitous events, he/she shall be given a grace period of not less than one year to pay the obligation on deferred payment.  This obligation shall be embodied in the VLT/DPS agreement. Otherwise, he/she shall be penalized under Article V, Section 7 of this A.O. In such case, the land shall be distributed in the following order:

1. To a qualified heir of the beneficiary who is willing to abide by the terms of the existing VLT/DPS agreement and pay for the remaining balance of the value of the land; or

2. In the absence of a qualified heir, to a new qualified beneficiary who, as a condition for such transfer or conveyance, is willing to abide by the terms of the existing VLT/DPS agreement and pay for the entire value of the land.

In the case of substitution of the beneficiary with a qualified heir, the amount amortized by the beneficiary and the improvements the latter may have introduced on the land will be credited in favor of his/her heir.

However, in case the transferee is other than an heir of the original beneficiary, the amount amortized by the original beneficiary and the cost of improvements he/she has introduced on the land may either be reimbursed to him/her in one lump sum or on installment basis.

h.  All payments made by an ARB under the VLT/DPS agreement must be covered by receipts that will be issued by the LO. Upon submission by the ARB of receipts showing full payment, the Provincial Agrarian Reform Officer (PARO) concerned shall issue a Certificate of Full Payment and request the Register of Deeds (ROD) concerned for the cancellation of the encumbrance annotated at the back of the CLOA.  The Municipal Agrarian Reform Officer (MARO) shall render assistance in this regard when necessary.

Refusal of the landowner to issue a receipt for every payment shall constitute a valid ground for the ARB to suspend payment to landowner and deposit the same with the LBP in the account of the landowner.

i.  Lands acquired under the VLT/DPS may not be sold, transferred or conveyed except through hereditary succession, or to the government, or to the LBP, or to other qualified beneficiaries for a period of ten (10) years, provided, however, that the children or the spouse of the transferor shall have the right to repurchase the land from the government or LBP within a period of two (2) years from the date of transfer, pursuant to section 27 of R.A. No. 6657.

j.  The agreement on VLT/DPS shall be adequately explained by the MARO to the parties in the local dialect prior to its signing.

k.  Land mortgaged with banking and/or financial institutions or private individuals shall not be subject to VLT/DPS.

l.  In case of disagreement during negotiations between the landowner and qualified beneficiary over the value of the land and/or the terms and conditions of the proposed VLT/DPS agreement, the parties may subject themselves to mediation by the PARO upon the request of the MARO.  Should the disagreement remain unresolved after six (6) months from the date of the first conference called by the MARO, the negotiations shall be terminated and subject land shall instead be acquired by the government and transferred pursuant to compulsory acquisition under Section 16 of R.A. No. 6657.

m.  Landholdings within the LO's retention limit shall not be the subject of VLT/DPS.  However, VLT/DPS may be allowed if the LO waives his/her rights of retention as provided under Section 6 of A.O. No. 02, series of 2003 and instead offers the subject area for CARP coverage in addition to his/her landholdings in excess of the retention limits provided under Section 6 of R.A. No. 6657.

n.  Landholdings subject of VLT/DPS may be covered under CA or VOS if the concerned parties have not yet signed the Deed of Voluntary Land Transfer (DVLT).

Landholdings covered under CA or VOS may be allowed to be shifted to VLT/DPS mode of acquisition provided that the LBP has not yet issued a memorandum of valuation (MOV) on the subject landholding.


ARTICLE II
DOCUMENTARY REQUIREMENTS

SECTION 3. Documentary Requirements - The following basic documents shall be required under the VLT/DPS Agreement (VLT/DPS Form No. 2).

a.  For Titled Properties and Lands Acquired Through Prescription

1.  Certified true copy of the original copy of title on file with the ROD;

2.  Certified true copy of the latest Tax Declaration;

3.  Certified true copy of the approved segregation or subdivision plan with corresponding approved technical description;

4.  Certified true copy of the Real Estate Tax Clearance or Statement of Tax Delinquency;

5.  Certification from the ROD concerned that the property is free from liens and/or encumbrances; and

6.  Certification from the LBPthat the subject land has not yet been issued with MOV pursuant to Section 2 (n) of this A.O.

The LO shall surrender to the DAR Municipal Office (DARMO) the original copy of duplicate certificate of title once the VLT/DPS application is approved.

b. For Untitled Properties:

1.  Community Environment and Natural Resources Officer (CENRO) Certification pursuant to DAR-DENR Joint Memorandum Circular No. 01, Series of 2003, that the land is continuously occupied and cultivated by the claimant or his/her predecessors-in-interest and has been classified as alienable and disposable for at least thirty (30) years prior to the effectivity of R.A. No. 9176 on 04 December 2002;

2.  Survey plan of the property/ies duly approved by the Land Management Bureau (LMB) or if not available, a sketch plan certified by the said office and a technical description thereof;

3.  Certified copy of the claimant's current Tax Declaration on the property indicating the lot numbers and area per approved plan;

4.  Instruments of acquisition covering the subject property, such as Deed of Sale, Donation, Transfer, etc. in favor of the claimant and those of his/her predecessor/s in interest;

5.  Certification of the Assessor concerned showing the Tax Declaration issued, the declarant/s, the area covered, and the basis for the issuances and cancellations made thereon from the first declaration up to the Tax Declaration issued in the name of the claimant;

6.  Certification from the Clerk of Court concerned whether or not the property is involved in land registration proceedings or a civil case and if the same was used as bond or bail in other court actions;

7.  Certification from the office of the ROD and the Assessor's Office concerned that per their records, the property/ies, as appearing in the approved survey plan, is/are free from all liens and encumbrances;

8.  Land Registration Authority (LRA) Certification that subject land is not within decreed property per their record; and

9.  Certification from the LBP that the subject land has not yet been issued with MOV pursuant to Section 2 (n) of this A.O.

ARTICLE III
OPERATING PROCEDURES

SECTION 4. Operating Procedures - The operating procedures outlined below shall be followed:
 

Responsible Person/Unit		Activity		Required Forms/Documents
A. Application (See Annex "B"* for the Process Flow)
LO and Prospective Beneficiary		1. Initiate the negotiation with prospective ARBs and submit the application for VLT/DPS Arrangement together with the prepared VLT/DPS Agreement documents under Art. II, Sec.3 of this A.O. to DARMO		-Notice/Application for VLT/DPS (VLT/DPS) Form No. 1*;     -LO Information Sheet (Revised CARP Form No. 1.1, Annex "A");
		The tenant-beneficiary and the other ARBs (non-tenant), whether alone or co-existing with each other, shall provide documents (e.g., affidavit, assessor's certification) as evidence that they are not disqualified under the rules to become beneficiaries of the CARP. If the prospective ARB is a child of the LO, he/she shall produce pertinent documents (e.g., leasehold contract, receipts of lease rental payments, birth certificate, corroborative affidavits of two (2) disinterested parties) to prove that indeed a tenurial relationship has been established prior to 15 June 1988 pursuant to Section 22 of R.A. No. 6657.		- Proposed VLT/DPS Agreement (VLT/DPS Form No. 2*); - Affidavit of Waiver of Landowner's Retention Rights (VLT/DPS Form No. 3*); - Pertinent supporting documents provided under Art. II, Sec.3 (a) and (b) of this A.O.
		In the event the LO waives his/her right of retention pursuant to Art.I, Sec. 2 (m) of this A.O., he/she shall execute an affidavit of waiver of rights and submit the same to the DARMO
		In the case of tax delinquencies incurred by the LO, he/she shall first settle his/her outstanding obligation before entering into a VLT/DPS Agreement with the ARB. If the LO cannot pay in cash, he/she may arrange with the prospective ARB the payment of the said taxes pursuant to Art.I, Sec. 2 (f) of this A.O.

 

B. Identification and Screening of ARBs (See Annex "C"*); for the Process Flow)
DARMO		2. Record and review the LO's application and proposed agreement with all its supporting documents.
		3. Prepare the preliminary list of identified tenants, actual occupants or potential beneficiaries of the subject landholdings		-Preliminary List of ARBs (VLT/DPS Form No. 4*);)
		4. Post the preliminary list of identified tenants, actual occupants or potential beneficiaries, together with a photocopy of the landowner's notice/application for VLT/DPS and the proposed VLT/DPS Agreement, for a period of fifteen (15) days in the barangay or municipal hall where the landholding is located and in public or conspicuous places in the community.		- Notice of Posting (VLT/DPS Form No. 5*);)
		In case there are objections or questions regarding the preliminary list of ARBs, the concerned party/ies may inform the DARMO on the matter within the said period of posting.
DARMO and Barangay Agrarian Reform Committee (BARC)		5. Simultaneous with the period of posting
		5.1 Conduct an ocular field investigation to confirm and/or validate the following:
		a. Identity of the LO;
		b. Identity, willingness to enter into VLT/ DPS as proposed by the LO, and qualification of the prospective ARB based on the following:
		- landless as defined in R.A. No. 6657;
		- Filipino citizen;
		- permanent resident of the barangay and/or municipality;
		- at least fifteen (15) years of age or head of the family at the time of acquisition of the property; and
		- has the willingness, ability and aptitude to cultivate and make the land productive.
		c. Information on the land and its current production as it pertains to the provisions of the proposed agreement; and
		d. Whether or not the prospective ARB is a child of the LO and determine if he/she is qualified to enter into VLT/DPS pursuant to Art. I, Sec. 2(a) and second paragraph of Art. III, Sec. 4.A.1 of this A.O.
DARMO		5.2 Gather data on the price of adjacent or surrounding landholdings with feature/s similar or comparable to the subject land for purposes of determining the value of the said land.
DARMO, BARC and DARPO		6. The MARO shall prepare and sign the field investigation report and sworn certification that both the LO and ARB are not prohibited to enter into a VLT/ DPS Agreement. Both documents shall be attested by the PARO. The sworn certification shall be duly noted by the BARC, or in the absence thereof, the Barangay Council.		- Field investigation Report (VLT/DPS Form No. 6*);)           - Sworn Certification on Existence of Tenurial Relations between LO and ARB (VLT/DPS Form No. 7*);)
DARMO		7. After the fifteen-day posting, issue Certificate of Posting Compliance attested by the BARC Chairman or his/her authorized representative, indicating therein the inclusive dates of the posting period.		- Certificate of Posting Compliance (VLT/DPS Form No. 8*);)
		8. Ensure that the potential ARBs meet the qualifications provided under Art. III, Sec. 4 (B), (5.1) (b) of this A.O. Otherwise, disqualify the applicants to enter into VLT/DPS and inform them of the matter.		- Checklist of Qualifications of Potential ARBs (VLT/DPS Form No. 9*);)
		9. Prepare the master list of ARBs based on the results of the ocular field investigation report and the documents submitted by the concerned parties for file and reference.		- Master List of ARBs (VLT/ DPS Form No. 4*);)

 

C. Signing of VLT/DPS Agreement (See Annex "D"* for the Process Flow)
		10. Immediately after the fifteen-day posting period, send invitation letter through registered mail with return card or personal delivery to LOs and ARBs included in the master list to discuss the terms and conditions of the proposed VLT/DPS Agreement.		- Letter of Invitation (VLT/ DPS Form 10*)
		11. Record and prepare the minutes of the meeting and assist both parties in finalizing the VLT/DPS Agreement, explaining in detail and in the dialect known to the parties concerned the following:		-Minutes of the Meeting (VLT/ DPS Form No. 11*))               - Agreement on Voluntary Land Transfer (VLT/DPS Form No. 2*)
		a. Pertinent rules and regulations governing the VLT/DPS;
		b. Terms and conditions stipulated in the proposed Agreement, the rights and obligations of each party and the consequences of their non-compliance thereof; and
		c. Process of determining land valuation.
		12. In case of disagreement of the parties on the value of the land and/or the terms and conditions of the proposed VLT/DPS Agreement, request the PARO to mediate in resolving the disagreement within six (6) months. All pertinent documents shall be forwarded to the DARPO for reference.		- Request for Mediation(VLT/DPS Form No. 12*)           - Pertinent Documents
		1.3 Ensure that the VLT/DPS Agreement is in order and the documents and requirements are complete and properly complied with. Likewise, make sure that the VLT/DPS Agreement is prepared in five (5) copies, all signed by the parties concerned and their witnesses.
		1.4 Forward complete VLT/DPS claim five (5) days after compliance of the posting requirements.		- Memorandum of Transmittal (VLT/DPS Form No. No. 13*)

D. Mediation by the DARPO (See Annex "E"* for the Process Flow)
DARPO		15. Immediately upon receipt of the request for mediation from the DARMO, record and resolve the disagreement within six (6) months. A report, including the concomitant recommendation, shall be prepared regardless of whether or not the issue/disagreement is resolved. The report and recommendation shall be forwarded to the DARMO for appropriate action.		- Memorandum of Instruction to MARO (VLT/DPS Form No. 1*)               - Report and Recommend- ation on the Disagreement(VLT/DPS Form No. 15*)     If an agreement, has not been reached after six (6) months, the subject landholding shall be acquired and distributed in accordance with A.O. No. 02, Series of 1996.
DARMO		16. Upon receipt of the instruction and recommendation from the PARO, prepare the VLT/DPS Agreement in accordance with this A.O., or acquire and distribute the subject landholding under compulsory acquisition in accordance with existing guidelines, whichever is appropriate.

 

E. Review and Evaluation of VLT/DPS Claim Folder (See Annex "F"* for the Process Flow)
DARPO		17. Upon receipt of the VLT/DPS CF, record the provisional VLT/DPS Agreement in a logbook maintained for the purpose.
		18. Review and evaluate the pertinent forms and documents contained in the VLT/DPS CF for authenticity, completeness and consistency. The VLT/DPS Agreement shall be subject to review by the Legal Officer.
		Likewise, conduct an ocular field investigation to validate the qualification of the prospective ARBs pursuant to Art. III, Sec. 4 (b) (5.1) (b) of this Order. 19. If in order, forward the VLT/DPS CF to the DAR Regional Office (DARRO) with recommendation for approval of the VLT/DPS Agreement by the Regional Director (RD). Otherwise, return the same to the DARMO for appropriate action.
DARRO		20. Approve the agreement within thirty (30) calendar days from receipt of the VLT/DPS CF from the DARPO, otherwise return the same to the DARMO, through DARPO, for appropriate action. The VLT/DPS Agreement shall be considered approved unless a Notice/Memorandum of Disapproval is issued by the RD and received by the LO and ARB within thirty (30) calendar days from the receipt of the VLT/DPS CF by the DARRO. However, this 30- day reglementary period may be extended upon due notice to the parties concerned in case a protest is filed or, in meritorious cases, if the RD thinks that more time is needed to evaluate the documents.
		21. Upon approval of the Agreement, send memorandum to DARMO, through DARPO, directing them to coordinate with the survey party in the conduct of the survey of the subject landholding and execute the Deed of Voluntary Land Transfer (DVLT) between LO and ARB.		- Memorandum (VLT/DPS Form No. 16*)           - Deed of Voluntary Land Transfer (VLT/DPS Form No. 17*)
		The DVLT should be with conformity of the LO's spouse. In the absence of the spouse, a Special Power of Attorney (SPA) shall be required permitting his/her spouse to have the land subjected to VLT/DPS. Otherwise, order the suspension of the processing of CF including the VLT/DPS Agreement until the matter is resolved.
DARPO		22. Furnish copy of the approved subdivision plan (ASP) to the DARMO.
DARMO		23. Prepare and submit land distribution folder (LDF) to DARPO for generation of CLOAs.

 

F. Generation and Registration of CLOAs and Registration of Deed of Voluntary Land Transfer (See Annex "G"* for the Process Flow)
DARPO		24. Receive and record the LDF, and review same to ensure that the documents contained in the LDF are complete. In case of lacking documents, require the DARMO to submit the pertinent documents.
		25. On the basis of the approved survey plan and LDF submitted by DARMO, generate CLOAs in the name of the ARB/s. All CLOAs generated shall contain an annotation of lien in favor of the LO and that the said landholding is covered by a Deed of Voluntary Land Transfer (DVLT), to be signed by the PARO.
		26. Prepare the corresponding Judicial Form -CLOA-title Utilization Worksheet (JFUW) based on the systems and procedures for the requisition, issuance, utilization and accounting of EP/CLOA Judicial Forms and forward the same, together with the CLOA, to the DARRO for signing and sealing of the CLOAs.
DARRO		27. Affix RD's initial on all error-free CLOAs.
		28. Return erroneously generated CLOAs to DARPO for replacement.
		29. Inscribe the signature of the Secretary and DAR seal through the signing and sealing machine.
		30. Forward signed and sealed CLOA and the corresponding JFUW, with transmittal memorandum, to DARPO for registration.
DARPO		31. Record signed and sealed CLOAs and enter the same in the CLOA Registry Book of the ROD.		- Signed and Sealed CLOA- title.
		32. Cause the registration of DVLT and CLOA with the ROD. (The registration of the VLT/DPS Agreement and the corresponding CLOAs and the corresponding CLOAs are free from payment of Capital Gains Tax, Registration Fee, and all other taxes and fees for the conveyance and transfer thereof pursuant to Sections 66 and 67 of R.A. 6657).
		33. After registration, reflect title number and date of registration in the CLOA Registry Book.
		34. In case of collective ownership, reproduce a registered certified photocopy of CLOA-title.
		35. Transmit the registered Owner's Duplicate copy of the CLOA-title and certified photocopy of the same to DARMO for distribution to ARBs.

G. Distribution of CLOA- Titles (See Annex "H"* for the Process Flow)
DARMO		36. Record and distribute the Owner's Duplicate copy of CLOA-title to ARBs.
		In case of collective ownership, furnish the ARB a certified photocopy of co-owner's duplicate CLOA-title.
		37. Assist ARBs in securing corresponding tax declaration from the Assessor's/Treasurer's office from the time the CLOA-title is distributed.
		38. Maintain a logbook of all CLOA-title issued within the municipality and prepare an individual record for each ARB.
		39. Remind the ARBs of their obligation to pay the agreed amortization to the LO when it falls due either in cash or in kind, as stipulated in the DVLT.

ARTICLE IV
MONITORING AND REPORTING

SECTION 5. Monitoring - For monitoring purposes, the following procedures shall be observed:

Responsible Person/Unit		Activity		Required Forms/Documents
A. Monitoring of VLT/DPS Implementation (See Annex "I"* for the Process Flow)
DARMO and BARC		1. Conduct annual field inspections of landholdings under VLT/DPS in coordination with the BARC to determine the following:
		a. Whether or not the LO immediately transferred the possession and ownership of the land to the ARBs;
		b. Whether or not the ARBs or their direct compulsory heirs continuously occupy or cultivate the subject property;
		c. Whether or not both parties complied with the terms and conditions stipulated in the VLT/DPS Agreement; and
		d. Whether or not the ARB and LO strictly adhered to the prohibition and restriction on alienation of VLT/DPS.
		2. Prepare and sign the inspection report and file the same for reference		-Field Inspection Report on Landholding Subject of VLT/ DPS (VLT/DPS Form No. 18*)
DARMO		3. In the event that any of the conditions/situations provided under Art. IV, Sec. 5 (A) (1) of this A.O. are found, undertake the following activities:
		a. In case the possession of the land covered by VLT/DPS was not immediately transferred by the LO to ARBs, the following shall be undertaken:
		a.1 send invitation letter to both parties for consultation/meeting to resolve/settle the issue;
		a.2 conduct and facilitate the meeting in coordination with and assistance of the BARC Chairman, or in the absence thereof, the Barangay Council, and
		a.3 require the LO to sign a commitment for immediate transfer of the land to the ARB. Otherwise, forward to the DARPO the unresolved issue/problem for appropriate action.		-Commitment Form (VLT/DPS Form No. 19)
		b. In case the original ARB/s or their direct compulsory heir/s is/are no longer the actual occupant/s or cultivator/s of the land covered by VLT/DPS, identify and screen qualified beneficiaries in accordance with Art. III, Sec. 4(B) of this A.O. for the purpose of executing a new VLT/DPS Agreement. Unresolved issues or problems shall be forwarded to the DARPO for appropriate action.
		c. In case the terms and conditions stipulated in the VLT/DPS Agreement are not complied with, the procedures provided under Art. IV, Sec. 5(3) (a) of this A.O. shall be followed. Thereafter, require the parties to sign a commitment to abide by the terms and conditions stipulated in the VLT/DPS Agreement and file the same for reference.		-Commitment Form (VLT/DPS Form No. 19*)
		Otherwise, forward to the DARPO the unresolved issue/problem for appropriate action.
		d. In case the prohibitions and restrictions on alienation of VLT/DPS are not adhered to, follow the procedures provided under Art. IV, Sec. 5(3) (a) of this A.O. and require the concerned parties to sign the commitment form to strictly follow the pertinent provisions on this A.O. for file and reference.		- Commitment Form (VLT/DPS Form No. 19)
		The unresolved issue/problem shall be forwarded to DARPO for appropriate action.
		4. Prepare a report on the actions taken regarding the case/s found during the field inspection and forward the same, together with the pertinent documents, to DARPO.
B. Monitoring of Problems, Issues and Concerns at the DARPO (See Annex "J"* for the Process Flow)
DARPO		5. Receive and record the DARMO's report on unresolved issues regarding the abovecited conditions/situations.		- Report of Problems/Issues/ Concerns (VLT/ DPS Form No. 20*)
		6. Review and resolve the problems, issues and concerns referred by DARMO and notify concerned parties on the matter. The PARO shall initiate and exhaust all efforts to resolve said problems, issues and concerns following the pertinent procedures outlined on this A.O.
		7. Prepare a consolidated report of the problems Issues and concerns on VLT/DPS implementation submitted by DARMOs for reference.		- Report of Problems/ Issues/ Concerns (VLT/ DPS Form No. 20)
		8. Prepare the updated status report of problems, issues, and concerns on VLT/DPS implementation.
		9. Furnish the DARMO, DARRO and DARCO a copy of the status report on problems, issues and concerns on VLT/ DPS Implementation		- Status Report on the Problems, Issues and concerns on VLT/DPS Implementation (VLT/DPS Form No. 21)
C. Compliance Audit by the Internal Audit Service (IAS) (See Annex "K"* for the Process Flow)
Provincial and Regional IAS		10. Conduct annual audit on the compliance with this A.O.; and
		11. Prepare and Submit audit report to IAS Central Office.		- IAS Audit Report
DARCO-IAS		12. Upon receipt of the audit report submitted by the Provincial/Regional IAS, review the same and consolidate in one report for information and appropriate action, if necessary.
		13. Submit the consolidated report together with its audit recommendation to the Office of the Secretary.
OSEC		14. File, review and/or undertake appropriate action, if necessary, on the submitted audit report.

SECTION 6. Reporting - For reporting purposes, the following procedures shall be observed: (See Annex "L"^* for the Process Flow)
     

Responsible Person/Unit		Activity		Required Forms/Documents
DARMO		1. Every quarter, prepare the master list of all landholdings covered by VLT DPS stating the corresponding names of the LO and ARBs of different landholdings		- Master List of / Agricultural Lands Covered by VLT/ DPS (VLT/DPS Form No. 22)
		2. Forward the masterlist of all landholdings to DARPO and maintain file.
DARPO		3. Based on the record and consolidated master list of landholdings under VLT/DPS submitted by DARMO, prepare an accomplishment report on VLT/DPS.
		4. Submit the accomplishment report and consolidated report to DARCO, copy furnished the DARRO.
DARRO		5. Receive the above reports from DARPO for reference
DARCO-BLAD		6. Consolidate, evaluate and analyze the accomplishment reports submitted by DARPOs.
		7. Prepare and submit the national accomplishment report on VLT/DPS to the following offices/units:
		a. Planning Service; and
		b. Management Information Service

ARTICLE V
SANCTIONS

SECTION 7. Penalties on Agrarian Reform Beneficiaries - Should the ARB, for reasons other than force majeure or fortuitous events, defaults in his/her obligation to pay an aggregate of three (3) annual amortizations, or the equivalent thereof, to the LO or deliberately fails to comply with any provision of the agreement or of this A.O., he/she shall be penalized with the following:

1.  Permanent disqualification as a beneficiary under CARP pursuant to Section 20 (c) of R.A. 6657 and M.C. No. 19, Series of 1996 titled, "Guidelines and Procedures Governing the Monitoring of Violations or Circumventions Committed by the ARBs, Providing Sanctions Therefor and Filing of Appropriate Administrative Quasi-Judicial and/or Criminal Actions";

2.  Cancellation of any CLOA issued pursuant to A.O. No. 02, series of 1994 titled, 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"; and

3.  Forfeiture of all payments made by the disqualified beneficiary in favor of the landowner. Land payments shall be treated as lease rentals. Should there be non-payment of land for the time that the disqualified ARB remained in possession of the land, the value of lease rentals for the use of the land shall be assessed in accordance with the provisions of R.A. No. 3844, as amended.

SECTION 8. Penalties on Landowners - The LO who willfully prevents or obstructs the implementation of the CARP shall be penalized pursuant to Section 74 of R.A. No. 6657 and shall no longer be allowed to apply for VLT/DPS.  The subject land shall immediately be covered through compulsory acquisition.

The concerned RD or PARO shall file a case against the LO before the proper court.

SECTION 9. Administrative Sanctions - Applications for VLT/DPS shall be processed strictly in accordance with this A.O. Administrative sanctions shall be imposed on DAR field personnel, without prejudice to the filing of criminal and civil actions, who have willfully, feloniously, and/or negligently processed VLT/DPS folders and circumvented the provisions of this A.O. resulting to the transfer of agricultural lands to individuals who are not actually qualified beneficiaries under CARP.


ARTICLE VI
FINAL PROVISIONS

SECTION 10. Transitory Provision - In order to prevent delays in the processing, evaluation and approval of all VLT/DPS claim folders already forwarded to or pending at the DARRO shall continue to be processed under A.O. No. 8, Series of 1997.  However, all VLT/DPS claim folders still in the DARMOs and DARPOs at the time of the effectivity of these guidelines shall be governed by this Administrative Order.

SECTION 11. Repealing Clause - All orders, circulars, rules and regulations inconsistent herewith are hereby revoked, amended or modified accordingly.

SECTION 12. Effectivity - This Administrative Order shall take effect ten (10) days after its publication in two (2) newspapers of general circulation pursuant to Section 49 of R.A. No. 6657.

Adopted: 23 Dec. 2003

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^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.

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^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.

^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.

^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City

^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.

^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.

^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.

^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.

^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.

^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.

^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.

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