MANILA, Philippines - The Cojuangco family was not overcompensated in the distribution of the Hacienda Luisita estate to farmer-beneficiaries in October last year, the Department of Agrarian Reform (DAR) said yesterday.
The DAR belied allegations by ACT party-list Rep. Antonio Tinio, who claimed there was an overpayment of P167 million for the land.
Tinio said the amount represents interest on the payment.
DAR undersecretary for legal affairs Anthony Parungao said the payment of interest was legal as provided under the Comprehensive Agrarian Reform Law of 1988.
Parungao said in computing the compensation for Hacienda Luisita, the Landbank based its valuation on the date of the taking of the property, which the Supreme Court had set.
“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. That should be the reckoning point of the determination of the land’s valuation and the amount for just compensation,†he said.
The DAR official said since the land was deemed taken in that year, the AR (agrarian reform) Bonds component of the compensation earned interest during the 10-year maturation or until 1999.
He said the P167 million is the accrued interest of the bonds for the said period. No interest was paid on the AR Bonds after 1999.
Based on Landbank computation, the government valued the Hacienda Luisita at P67,550 per hectare or a total of at least P304 million for the 4,500 hectares.
Parungao said if the interest on the AR Bonds was factored in, the price the government was paying for Hacienda Luisita land was at least P104 million, as he noted the current value of sugar lands as between P250,000 to P400,000 per hectare.
Farmer-beneficiaries will be paying P46,150.75 which is payable for 30 years, starting with a monthly amortization of P57.59 for the first three years.
Parungao said the DAR would welcome any investigation in order to clear doubts on the compensation to the Cojuangco family.