Hacienda Looc

(This paper discusses the impact of a large-scale tourism project by Fil-Estate Properties, lnc. and Manila Southcoast Development Corp. on the people of Hacienda Looc, Nasugbu, Batangas; how the government-owned land was transferred to private hands despite the fact that land reform was already being undertaken in the area; the project's impact on the environment; human rights abuses committed against the people, and other pertinent issues that has made Hacienda Looc a test case for the peasantry's struggle to resist landgrabbing and fight for genuine land reform.)

Introduction

Big business call it land-banking. For peasants, it is land-grabbing.

Windfall profit from sheer land speculation has pushed foreign and local big business to accumulate lands especially in rural areas where the government plans to undertake so-called "urbanization" projects under its Philippines 2000 program. This phenomenon which started in the late 80's has contributed to the rapid concentration of lands in the hands of big business and has since aggravated the problem of peasant landlessness in the country.

Peasants are duped to give up their lands, otherwise they are forcibly ejected. In many cases, whole peasant communities are affected and displaced to give way for the construction of residential subdivisions, commercial or industrial estates and tourism complexes.

Lands covered by land reform are not spared, underscoring the bankruptcy of the government's Comprehensive Agrarian Reform Program (CARP). Because of enormous petitions from landowners to have their lands exempt from CARP, the Department of Agrarian Reform has been more preoccupied with hearing petitions for exemption and land use conversion. It has been cancelling Certificates of Land Ownership Awards (CLOAs) it previously gave to CARP farmer-beneficiaries at a much faster rate than it can distribute lands to farmers.

Land deals especially those involving the sale or lease of public lands to private corporations are most often consummated through bureaucratic graft or simply using political connections and clout. Whenever there is resistance from affected peasant communities, brute force is used as in deploying military or police troops and private goons to harass and intimidate the local populace.

The construction of the country's biggest ever tourism complex in Hacienda Looc, Nasugbu, Batangas by real estate giant Fil-Estate Properties, Inc. and Manila Southcoast Development Corp. (MSDC) is a classic example that illustrates the gamut of problems mentioned above.

Ten thousand (10,000) peasant families are about to be displaced from their land, their rights as land reform beneficiaries forfeited as Fil-Estate's Harbortown transforms their nature-endowed coastal villages into an exclusive playground for the rich. When completed, Harbortown will include 4 golf courses, a 5-star hotel, beach resorts, a marina for yacht anchorage and neighborhoods of luxurious vacation homes.

Tension has begun to grip this once placid farming and fishing community. Fil-Estate's security guards have already killed two (2) members of the local peasant organization. Of late, military troops came in the area in the guise of conducting a training but which is believed by the local population as another attempt by Fil-Estate to sow terror and fear among them.

How the ownership of the entire estate was transferred from government to private hands also reveals questionable transactions between the Asset Privatization Trust (APT) and MSDC. Why Fil-Estate can be so reassuringly optimistic about pursuing the project despite massive resistance from the people also lays bare what kind of political connections it has with Malacanang and high-ranking government bureacrats.

The people of Hacienda Looc are resolute in their struggle to stop the project and retain their lands. Support and sympathy from various sectors is very much solicited to help them confront and overcome such big corporate giants as Fil-Estate and MSDC. Certain government officials or agencies who have connived or are conniving with Fil-Estate and MSDC have to be exposed and prosecuted. But most importantly, the government must be made to answer for its culpability not in Hacienda Looc alone but in all other places nationwide where the people are made to suffer in order to protect the interests of big business. It must be taken to task for pushing the kind of development that serves only a few at the expense of the people and more vital social measures as land reform.

Hacienda Looc

Hacienda Looc is an estate that stretches over the seaside villages of Calayo, Papaya, Look and Bulihan in the coastal town of Nasugbu, Batangas. It has a total land area of 8,650.78 hectares. With such expanse, its topography is a mixed pattern of plains, valleys and mountainous areas principally devoted to agriculture.

Its plains cover more than 1,700 hectares planted to rice, corn, vegetables and sugarcane. The sizeable portion of the mountainous areas are productive of fruit trees such as mango, banana, jackfruit and star apple, wild rice and rootcrops such as cassava and camote.

The estate is bounded by extensive shorelines that link the four villages to the rich fishing grounds in the China Sea. The shores in sitio Cutad, Hamilo and Looc form three large coves that are rich in aquamarine resources. These attributes make up a combination which enabled the 10,000 local population of Hacienda Looc to exist in relative self-sufficiency for decades. Majority of them have settled in the area for four generations.

Aside from its present productivity, Hacienda Looc is full of potentials for development that could upgrade the living conditions of its farming and fishing population. Its beaches and coves can be developed for local tourism and aquaculture projects. Its swamps and mangroves are ideal for bangus and prawn-raising. Its two rivers and streams can be tapped for harnessing energy and communal irrigation systems while the mountain slopes can be developed for sustainable agro-forest production.

Hacienda Looc has attracted the interest of real estate speculators and developers because of its key role in the government's CALABARZON development scheme (Cavite, Laguna, Batangas, Rizal, and Quezon- the southern provinces of the island of Luzon) and also because of its proximity to Metro-Manila and the so-called six "urban growth corridors" of Laguna Lakeshore, Batangas Urban, Cavite Island, Cavite Coastal, Alaminos-San Pablo and Marikina-Infanta. It is also strategically located within the CALABARZON-designated international tourism circuit namely: Ternate-Nasugbu Coastal Tourism Zone., Mabini Coastal Tourism Zone and Taal Lake Tourism Zone.

History of Land Ownership

In early times, the land was part of a huge plantation owned by the Roxas and then the Dolor families. The hacienda was used by the Dolor family to pay its loans with the Philippine National Bank and the Development Bank of the Philippines through "dacion en pago" (cession in payment). In 1973, ownership of the hacienda was transferred and consolidated with the Development Bank of the Philippines (DBP). During the early part of martial law, the rice and corn portions totalling 1,282 hectares were put under former dictator Marcos' land reform program, with 831 farmers qualifying as beneficiaries.

On February 27, ~987, DBP turned over the entire estate to the Assets Privatization Trust (APT), a government agency tasked with disposing government assets for sale or lease to private corporations and individuals. Also in 1987, the government of Corazon Aquino issued Executive Order 227 putting all alienable and disposable public lands suitable to agriculture under the Comprehensive Agrarian Reform Program (CARP).

Thus, on June 28, 1990, the APT came to an agreement with the Department of Agrarian Reform (DAR) to identify and distribute the lands of the hacienda to farmer-beneficiaries in accordance with the Comprehensive Agrarian Reform Law (CARL). In pursuance of this agreement, the DAR issued in 1991 some 24 collective CLOAs and one individual CLOA to 1,301 farmers. These combined CLOAs cover 3,981 hectares. This brings the number of hectares placed under land reform in Hacienda Looc to a total of 5,218 including a one-hectare plot donated by APT to the municipal government of Nasugbu.

However, even as land reform was already being undertaken, an interagency government task force led by the APT was at the same time working with the USAID in conducting a feasibility study for a land use plan in Hacienda Looc. In June 1991, the feasibility study commissioned to Joaquin Cunanan and Co. came up with a land use scheme proposing the transformation of the hacienda into an agro-tourism complex.

On December 8, 1993, the APT held a public bidding for the sale of the remaining portions of the hacienda not covered by CARP. It was also during this time that real estate speculators swarmed over Hacienda Looc, offering farmers to buy their lands including those already covered by CLOAs and Emancipation Patents (EPs).

By tendering the purchase price of P 215 million, Bellevue Properties Inc. (BPI) (reportedly owned by the family of retail magnate Henry Sy) was declared by the APT as the winning bidder. As initial payment, the Bank of the Philippine Islands (BPI) gave the government P6 million pesos. On the same date, BPI and Guoco Land (the same firm which owns Amari Coastal Bay Development Corp. which was involved in the controversial land scam with the Public Estates Authority) created the Manila Southcoast Development Corporation (MSDC), controlling 67% of its interests.

On August 26, 1994, BPI executed a Deed of Assignment in favor of MSDC. The assignment effected the transfer of BPI's rights as vendee of Hacienda Looc to MSDC. On August 30, 1994, MSDC paid APT the amount of P209 million representing the balance of the purchase price and signed a Deed of Sale for this purpose.

On October 17, 1995, MSDC and Fil-Estate Properties, Inc. signed a project agreement that forged their joint venture to develop 1, 269 hectares within Hacienda Looc into a world-class tourism and leisure complex, to be called "Harbortown Golf and Country Club."

Fil-Estate's Harbortown Project

Harbortown is by far the largest tourism project in the country being undertaken in a scale previously unheard of in the tourism industry. According to Fil-Estate's plans, the project will include four golf courses on wind-swept ridges, each designed by a different celebrity golf champion; a 120-room luxury hotel; exclusive neighborhood of vacation villas and a yacht marina envisioned to be part of a circuit of yachting destinations that includes Hongkong, Subic, Mindoro, and Boracay.

Fil-Estate has already come up with attractive marketing brochures of Harbortown with glossy photographs of the scenery and beaches which were retouched to remove all traces of the bustling seaside villages. The exclusive resort and leisure complex has only the filthy rich for its clientele who can afford, for example, the P600,000 club membership share in the yacht marina, the P3,500-P5,000 per square meter for the residential land or the P500,000 -P600,000 for each golf club share.

The entire project covers about 1,269 has. of land situated in the flatlands, ridges and coves of Hacienda Looc that are also currently held by farmers under 13 collective CLOAs. Despite opposition from farmers, Fil-Estate has started developing the first phase of the project, bulldozing on 216 hectares of the hacienda.

Fraudulent Land Deal

Like most government deals involving the sale of public lands to private entities, fraud must have accompanied the sale of Hacienda Looc to MSDC.

The Deed of Sale dated August 30, 1994 unequivocally states that what was sold by APT to MSDC was TCT No. T-28719 which covers the entire 8,650.7778 hectares. This is in circumvention of the bidding terms which openly placed on the bidding block only the remaining 3,248.24 hectares of the hacienda not covered by land reform.

The bidding terms showed that all bids would refer on "AS IS, WHERE IS" basis to the lands not placed under agrarian reform. The notice of the bidding expressly stated the following as part of the site data and legal description of the property:

Description of the Property Area (in hectares)

a. lands donated to the Municipal Government

of Nasugbu 1.00

b. lands awarded to farmer-beneficiaries under

P.D. 27 1,282.98

c. lands awarded to farmer-beneficiaries under

B.O. 407 (227?) 3,934.26

_________________________________________________________________________

5,218.24

d. lands undischarged by land distribution 3,432.54

The Deed of Sale, however, provided a clause which reserved "without limitation" to the vendee (MSDC) the following rights:

xxxx.. to retain and to require the return of the portions of the PROPERTY which are not covered by and not subject to the Comprehensive Agrarian Reform Law, the right to receive tile just compensation for the portion or portions of the PROPERlY duly acquired by DAR and duly distributed to qualified farmer- beneficiaries, the right to retain and to require the return of any portion of the PROPERTY previously surveyed by DAR for distribution to qualified farmer-beneficiaries but found not suitable for agricultural purposes or exempt from the Comprehensive Agrarian Reform Law by reason of slope thereof and the right to contest and to recover any portion or portions of the PROPERTY which may not have been duly aand properly acquired by DAR or which may not have been duly and properly distributed to qualified farmer-beneficiaries .xxxx (Deed of Sale, Clause No.3. Page 3) [italics ours]

Thus, after being charged by the Asset Specific Bidding Rules with the knowledge that it would be bidding (and therefore paying) only for the remaining 3,432.54 hectares, MSDC, not without a little help from the APT, tried to extend its luck and the exchange value of its purchasing price through the above-quoted clause which packed the following rights (reiterated here for the sake of clarity and emphasis):

a. the rights of ownership over 3,248.24 hectare-portion of Hacienda Looc

b. the rights to receive the just compensation for the lands already distributed to farmer-beneficiaries;

c. the right to retain and to require the return of the those lands found not suitable for agriculture;

d. the right to retain and require the return of those lands which DAR had already surveyed but not yet distributed to farmer-beneficiaries; and

e. the right to retain and recover those lands.which may not have been duly and properly acquired by DAR or not duly and properly distributed to farmer-beneficiaries.

The clause actually provides loopholes for MSDC to circumvent the land reform law and extend its rights of ownership beyond the 3,432 hectare-portion of the hacienda. This was what MSDC exactly did later. Through the assistance of certain DAR officials, it got what it wanted: cancellation of the farmers' CLOAs and exemption from land reform.

Hence, MSDC has virtually acquired the whole hacienda for only P215 million- although this amount was the same price it offered for only the 3,432 hectare-portion of Hacienda Looc. It is also worth considering that other realty firms are buying lands in other parts of Hacienda Looc and nearby villages at P70,000 to P100,000 per hectare, a far cry from the P25,000 per hectare acquisition price of MSDC for the contiguous 8,650 hectare-estate. If the USAID feasibility study is to be followed, the entire estate should have been sold by the Government at a much higher price of PI.2 billion.

The questionable sale of Hacienda Looc to MSDC raises not only the issue of fraud or bureaucratic graft in government. It also demonstrates what kind of political will the government has for pursuing its own land reform program.

A Mockery of Land Reform

To complete the legal requirements for divesting farmer-beneficiaries of their rights on the land, MSDC filed a petition on March 7, 1995 with the DAR Adjudication Board seeking the cancellation of 25 CLOAs in 3,294.26 hectares and the conversion of the agricultural lands these CLOAs covered.

MSDC and Fil-Estate simply got what they wanted. By invoking DOJ Opinion 44 that exempts from land reform all lands classified for non-agricultural uses before the enactment of CARL, Regional Adjudicator Fe Arche-Nlanalang issued a partial judgement on January 8, 1996 cancelling 10 out of the 25 CLOAs. It ruled that Hacienda Looc was earlier on classified as part of the tourism zone declared by Marcos.

The 10 cancelled CLOAs, covering 1,219 has. and affecting 413 farmer-beneficiaries, almost represents the entire area of 1,269 hectares. identified as project site by the Fil-Estate-MSDC joint venture. To complete the delivery of the additional 50 hectares to Fil-Estate and MSDC, DAR Region IV Director Remegio Tabones approved in December 26, 1996 MSDC's petition for exemption and land use conversion of the entire 1,269 hectare-project site.

The regional adjudicator also relied on a volume of affidavits supposedly executed by 312 farmers stating that subject lands are unsuitable to agriculture and thus not covered by CARP. However, said affidavits were so characteristically uniform in language, form and substance that they could only have been mass produced by a single brain. In fact, ten (10) of those who executed the affidavits were already dead.

At present, the DAR Adjudication Board (DARAB) proceedings of the remainder of the case have been suspended and Regional Director Tabones' decision is now under review by the DAR national office. DAR Secretary Ernesto Garilao was forced to take up the case partly because of stiff resistance from the people and also because the case has already attracted the attention of media (three leading dailies ran a two-part series article on the issue bylined by Howie Severino of the Phil. Center for Investigative Journalism). But it must also be due to the fact that it is Fil-Estate who's involved in the controversy and it was no less than Presidential Legal Adviser Rene Cayetano who has been following up the case with the DAR.

The DAR is currently reinvestigating the case, conducting fact-finding missions and an ocular survey of the area. In its fact-finding report dated December 18, 1996, DAR Undersecretary Hector Soliman could not ignore the following facts and attested:

a. that the buying of lands has been continuing in the area and involves government officials (e.g. Barangay Capt. Limeta, Nasugbu Mayor Rosano Apacible, DAR employees and Bulihan BARC Chairman Luis Javier);

b. that farmers were forced to sell their lands because of dire necessity;

c. that they did not know of the nature of the transaction which they individually entered into with Fil-Estate agents and they were made to sign blank documents;

d. that ten of those who executed adverse affidavits were already dead;

e. that former DAR-IV Regional Director Percival Dalugdog and Atty. Victor Baguilat were not able to amply defend the interest of agrarian reform beneficiaries in the adjudication proceedings;

f. that the titles of 10 cancelled CLOAs were transferred to MSDC in February 1996 even when some farmer-beneficiaries reasonably interposed a motion for reconsideration of the first partial judgement; and

g that the ongoing conversion in the 216 portion of Hacienda Looc (the so-called first phase) is a circumvention of conversion regulations because

1) the pending motion for reconsideration remains unresolved and renders the decision as not yet final as to be executory and,

2) MSDC's application for conversion is still pending litigation.

In the same report, DAR Undersecretary Soliman tried to assure the farmers that 1,282 hectares of land covered by EPs under Marcos's land reform would not be affected by exemption or conversion since they were not made subject of any litigation. He assured further that only some 2,829 hectares are potential for exemption for being over 18 degrees slope and agriculturally-undeveloped

However, in March 1997, Secretary Garilao gave a glimpse of the kind of decision it is coming up with on Hacienda Looc. In his weekly press conference, he said that Hacienda Looc may not be CARPabIe arguing that the area is not really agricultural. Without benefit of concluding its own investigation of the land dispute in Hacienda Looc, he said that there is no guarantee the farmers will win the case.

Environmental Menace

Since Fil-Estate's earthmoving activities on the 216-hectare portion of the hacienda (Phase I of the project) started in December 1995, the people have complained of erosion and siltation. This has caused damage to their crops planted in the lowlands. Fish catch has since then been also diminishing.

As if to show what force it is to reckon with, Fil-Estate started developing Phase I in October 1995 without the prerequisite Environmental Compliance Certificate (ECC) from the Department of Environment and Natural Resources (DENR). It was forced to get an ECC only in April 1996 following complaints aired by the people. In October 1996, Fil-Estate was fined for five violations of its ECC for its failure to replant trees and build protective measures against heavy erosion.

It is not only in Nasugbu that Fil-Estate has become very controversial when it comes to the enormity of its projects and their corresponding impact on the environment. In Boracay Island (a tourist island resort in the Visayas), its Fairways and Bluewater project will also take up half of the island for its golf courses. Since the island has no sufficient potable water supply, Fil-Estate plans to pipe in water from mainland Aklan province. In Baguio City, a place where water is rationed, Fil-Estate is embarking on building the biggest golf course which may have to use up all of Baguio's water supply for its maintenance.

Golf courses are seen as an environmental menace, wasting too much water and land for a sports only the rich can afford. According to environmental activists, an average 18-hole golf course occupies about 85 hectares of land and consumes 6,500 cubic meters of water daily. When translated in terms of how much water is wasted and land that was taken out from food production, the golf lawn is equivalent to approximately 40 peasant farmlots producing 500,000 kilos of rice a year and its water consumption enough to irrigate 65 hectares of farmlands or supply the daily water needs of 1 5,000 Metro Manila residents. In a country whose local food production is not enough to feed its population, converting farms into golf courses equally raises serious concerns on the issue of food security.

Large tracts of land, mostly farmlands and forests, are being cleared to make way for the construction of golf courses, often resulting in soil erosion, downstream flooding and landslides. To keep the lawns green and velvety, 9 tons of pesticides and insecticides are sprayed yearly which eventually get washed down into the water table, irrigation systems, rivers and sea. Not only do these pollute the waterways but 90% of the chemicals sprayed on the course end up in the air posing health problems on golfers themselves, caddies and local residents.

Human Rights Abuses

Fil-Estate and MSDC are not only guilty of abusing the environment, they are also culpable for committing human rights abuses against the people of Hacienda Looc.

In the evening of February 13, 1996, tw0 farmers, Francisco Marasigan and Maximo Carpinter, both members of UMALPAS KA-Hacienda Looc (or Ugnayan ng Mamamayan Laban sa Pangwawasak ng Kalupaan sa Hacienda Looc), the local peasant organization in Hacienda Looc, were shot to death without provocation by security guards of Fil-Estate and MSDC. The perpetrators were arrested two weeks after the murder but were later released by the Nasugbu police.

Fil-Estate and MSDC employ a total of 134 private security guards for its project in Hacienda Looc. They are deployed as combat units and stationed in detachments spread all over the two villages of Calayo and Papaya. If their job was only to secure bulldozers and other equipment, Fil-Estate would not need such a big "private army." Their mode of operations as combat units scattered in the villages reveal that it is the people whom Fil-Estate wanted to be watched over and silenced.

Last May 1997, about 60 elements of the Philippine National Police-Regional Special Action Forces (PNP-RSAF) came to Hacienda Looc in the guise of holding a military training. The people were alarmed of this unusual military presence in their area because never in the history of Hacienda Looc was it used for military training. This is in addition to one (1) platoon of the Armed Forces of the Philippines army Engineering Infantry Battalion that is already in the hacienda. Like in most cases where military troops are used to pacify people's opposition to certain development projects by government and big business, the deployment of the RSAF in Hacienda Looc signals an escalation of tension in the area.

Not only security guards, military and police forces are used by Fil-Estate and MSDC in their campaign to cow the people into submission. Certain local government officials who have their own economic stakes in Fil-Estate's project are likewise mobilized to intimidate officers and members of UMALPAS KA. Barangay Calayo Chairman Maximo Limeta, who was able to purchase 10 dump trucks by servicing Fil-Estate's development works in Phase I is said to be the local hatchet man of Fil-Estate. He has 17 fully-armed goons who have been responsible for tipping off organizers and NGO volunteers to the military and police, spreading threats that death already awaits certain persons involved in UMALPAS KA including its legal counsel Atty. Romy Capulong.

Political Connections

Many believe that Fil-Estate's fast rise to prominence as one of the country's leading developer would not be possible without its strong political connections with Malacanang. This explains why it can be so aggressive in pursuing controversial projects and get away with violating environmental rules or skirting the land reform law.

Fil-Estate Chairman Robert John L. Sobrepena has supported President Ramos' bid for presidency in 1992. Last year, Ramos appointed Sobrepena's older brother, Russell, as undersecretary of tourism. He is now in charge of planning and as such is involved in tourism development in Boracay, Baguio and other areas where Fil-Estate happens to have stakes also. The Sobrepenas are Ilokanos who are said to have historical famity ties and political kinship with the Ramoses.

President Ramos himself was part of the controversial joint venture with FII-Estate to develop Mt. Makiling as a residential subdivision for the rich called Springdale Gardens. He reportedly has a property in this controversial project which was later found to be lacking in the required ECC.

Fil-Estate also employs as its top brass executives certain influential people who can easily pull strings in high places of government. Francisco "Jun" Villa III, son of Ombudsman Francisco Villa, is Fil-Estate's business development manager. It can be recalled that the Ombudsman dismissed a case earlier filed by certain CARP beneficiaries against MSDC and the APT for defrauding the government in the sale of Hacienda Looc.

Engineer Macky Maceda, son of Senate President Ernie Maceda, is being paid by Fil-Estate as environmental consultant. Roberto Roco, a close relative of Senator Raul Roco, heads the realty firm's finance department. Senator Roco, on the other hand, is a major stockholder of Sheraton Hotels, the same hotel chain with whom Fil-Estate has forged joint ventures to build 5-star hotels in most of its tourism projects.

MSDC, on the other hand, is jointly owned by the family of Henry Sy and Guoco Land by a Singaporean national named Mr. Micky Yong Mee Swee. Henry Sy is known to be the big boss in the mall and retail business who has now also ventured into landbanking. Guoco Land owns and controls the Amari Coastal Bay Development Corporation, the leading realty firm who recently figured in a bigtime land scam with the Public Estates Authority (PEA) involving the sale of the reclaimed government land along Roxas Blvd. One must have not only the guts but real strong political backup to be able to pull such a big deal. PEA Administrator Lagdameo has resigned following media expose' of the scam but police investigation has yet to be concluded to determine the extent of Amari's culpability.

It is public knowledge though in Nasugbu, Batangas that General Eduardo Ermita, who is congressman for the fourth district of Batangas and a close friend of President Ramos, owns a large share of MSDC.

Pacification Tactics

There are no indications that Fil-Estate and MSDC may be willing to settle for a compromise in Hacienda Looc because they are standing pat on their claim on the land and are hell-bent to have land reform cancelled in the area. To stifle the people's increasing resistance to their project, they are however concocting schemes to pacify the people and mislead them into submission. This campaign of deception is being done side by side with their campaign of terror and militarization.

To make an impression that they are concerned with the welfare of the people, Fil-Estate and MSDC are "giving" the people titles for homelots in the same place these people have known to be their home long before these two realty giants came into the picture. A census is currently being undertaken by Fil-Estate among residents of the Hacienda supposedly to determine who may be entitled to these homelots.

To counter the presence of NGOs in the area who have been assisting the people in their struggle, Fil-Estate is creating its own NGO also whose role is to purportedly implement livelihood projects for the people.

While it is supposedly undertaking socio-civic activities for welfare of the people, Fil-Estate is at the same time buying off leaders of UMALPAS KA The chairman of this local organization, for instance, was offered two million pesos for a hectare of his land, in exchange for his acquiescence to the project.

These tactics are not new. They were always used in history against peasant resistance. Even government land reform programs were also intended for this purpose, tailor-made to be bogus and pro-landlord.

By all indications, the most probable move that the DAR will take on Hacienda Looc is to exempt it from CARP, a fast and sure way to do it. In any case that this may not be politically viable given the people's stiff resistance to the project and exposure of the issue in the press, DAR still has other options such as forging a joint venture agreement between farmer-beneficiaries and MSDC-Fil-Estate where the latter retains control of the land.

For several years now since CARP was enacted in 1988, the DAR has exhibited maximum flexibility in enforcing the law as to give CLOAs now only to take them back later. Or, to allow big corporations and former landowners to regain control of their lands by effecting so-called joint venture agreements between big corporations and farmer-beneficiaries. Other schemes such as leaseback, profit and production-sharing and stock sharing have the same effect of giving landlords and corporations the right to regain control of their land, ridiculously in the context of implementing land reform.

In areas where there are stiff landlord resistance to CARP, for example in the sugarlands of Negros Island in the Visayas, the DAR has been offering these schemes in order to convince landlords that they still can wield control over their estates and at the same time comply with the land reform law. It will just be a matter of distributing CLOAs to farmer-beneficiaries who will in turn surrender their rights on the land to a corporation or landlord with whom it is forging a so-called joint venture or leaseback agreement. In the joint venture, the landlord or corporation exercises all rights and powers as manager/administrator of the land and of course of the business enterprise that was put up on the land. The farmer-beneficiaries, on the other hand, will become mere workers in the enterprise and simply earn dividends on their shares on the land, which in most cases comprise only a third of the enterprise's capital stock.

It is important to note at this point that as early as November 1994, FilEstate and Carmona Realty entered into joint venture agreements with certain CLOA holders in Hacienda Looc to develop their lands into an agro-tourism area. It was the best way to acquire the lands without supposedly violating the land reform law.

Later, it forged an alliance with MSDC which triumphantly acquired the hacienda from government including the prerogative to have the lands exempt from land reform. Thus the two has since worked together for the total exemption of the hacienda from CARP. However, given the people's increasing resistance to the Harbortown project and after the issue has been exposed in the media, it is not farfetched to predict that Fil-Estate and MSDC, as a last recourse, would be offering farmer-beneficiaries joint venture schemes. In that case, they can pursue their Harbortown project in Hacienda Looc, this time with slight modifications as to integrate a "model farming or fishing community" in their whole development design.

Conclusion

Recent news about a property glut in the country may be an indication that the real estate bubble may already be bursting. Property owners and developers are downplaying the issue admitting though that the glut is only true for golf courses and high rise buildings. Government economic planners are likewise wary because the real estate sector was a major contributor to the country's much ballyhooed GNP growth in the past few years. No matter the extent of this current crisis in the real estate sector, this development only proves how superficial and volatile the country's so-called economic growth is. Not to mention the fact that the GNP posted positive growth rate only on account of overseas contract workers (OCWs) remittances, speculative foreign capital, and public debts while the manufacturing sector continues to decline.

The people of Hacienda Looc may have a reason to rejoice over this current development. But there is still no guarantee that their land would be spared from whatever Fil-Estate and MSDC plan to do with Harbortown. With millions of pesos at stake, these realty giants cannot simply abandon Hacienda Looc. In fact, Fil-Estate continues to employ its carrot and stick tactics against the people through harassment on one hand and cooptation on the other.

Hacienda Looc is a test case for thousands of peasants all over the country who are facing the same threat of dislocation and landlessness. The victory of the people in Hacienda Looc is a victory for the cause of the peasantry. And this is not impossible to achieve as long as the people remains united and undaunted and enjoys broad support from various sectors and organizations.


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