Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 671)
The main purpose of Presidential Decree No. 671 is to amend certain provisions of Republic Act No. 1160 to facilitate the speedy disposition of LASEDECO assets, particularly agricultural lands, by allowing certain lands to be sold through negotiated sale instead of public bidding, thereby helping landless tenants and farm workers to acquire land.
It amends the second paragraph of Section 10 of Republic Act No. 1160, specifically changing the method of disposing certain LASEDECO lands from public bidding to negotiated sales for qualified applicants.
Qualified applicants are those who are in actual possession of the LASEDECO lots and are presumably landless tenants and farm workers qualified to acquire those lands through negotiated sale.
Such lands shall be disposed of and awarded through negotiated sale to qualified applicants at a reasonable price, either payable in cash or within five years with 6% interest per annum.
All other LASEDECO assets, including farm machinery and equipment, are to be turned over to the Board of Liquidators and sold at public auction, with proceeds used to pay off debts and any net proceeds transferred to the National Treasury.
The interest rate is six percent (6%) per annum.
The payment period can be for a maximum of five (5) years from the date of execution of the sale.
The policy is to distribute lands to landless tenants and farm workers to increase agricultural production, generate employment opportunities, and improve living standards.
The President of the Philippines, by virtue of constitutional powers, issued the decree; implementation involves the Board of Liquidators and relevant government agencies.
It took effect immediately upon its signing on March 13, 1975.