Landbank Clarifies Hacienda Luisita Compensation Ruling
MANILA – The Land Bank of the Philippines (Landbank) issued a clear statement on Thursday regarding the recent Court of Appeals (CA) decision that orders a P28.49 billion just compensation payment to Hacienda Luisita, Inc. (HLI). The key phrase Hacienda Luisita compensation ruling appears early in the explanation to clarify Landbank’s position.
Contrary to some reports, Landbank emphasized that it has been removed as a party respondent in this case. Instead, the financial responsibility for the compensation rests with the national government’s Agrarian Reform Fund (ARF), which is managed by the Department of Agrarian Reform (DAR). This distinction is crucial to understanding the bank’s role in the process.
Landbank’s Role and Court of Appeals Decision
According to Landbank, the Court of Appeals explicitly dropped the bank as a party respondent in the just compensation case on April 30, 2024. The ruling clearly states that the P28.49 billion payment to Hacienda Luisita is chargeable against the ARF.
The ARF is a government fund administered by the DAR and not Landbank’s liability. The bank’s involvement is limited to acting as the custodian of the ARF, responsible solely for executing disbursement instructions provided by the DAR. This administrative role separates the bank from direct financial responsibility for the compensation.
Implications of the Hacienda Luisita Compensation Ruling
The recent Court of Appeals decision has significant implications. If the ruling is upheld, the DAR may choose to elevate the case to the Supreme Court for further review. Meanwhile, Landbank continues to clarify its non-liability in the matter, focusing on its custodian duties rather than ownership of the compensation obligation.
Local sources noted the importance of this clarification to avoid confusion about who is responsible for the payout. The national government, through the ARF, shoulders the financial burden, not Landbank.
For more news and updates on Hacienda Luisita compensation ruling, visit Filipinokami.com.