Amendment to RA 1160 on LASEDECO land sales

Presidential Decree No. 671 is enacted under the President’s constitutional powers.
Presidential Decree No. 671 amends Section 10 of Republic Act No. 1160.
Republic Act No. 1160 is the statute that abolished Land Settlement and Development Corporation (LASEDECO) and created the National Resettlement and Rehabilitation Administration.

Presidential Decree No. 671 is driven by the need for the speedy disposition of parcels of land forming part of LASEDECO assets under liquidation by the Board of Liquidators.
Presidential Decree No. 671 recognizes that Section 10 of Republic Act No. 1160 requiring disposition through public bidding has hampered the disposition process.
Presidential Decree No. 671 declares that facilitating land distribution to landless tenants and farm workers helps achieve a rising level of production, generate employment opportunities, and improve living standards.
Presidential Decree No. 671 addresses the risk that moneyed speculators can outbid actual qualified occupants in public auctions.

Presidential Decree No. 671 amends the second paragraph of Section 10 of Republic Act No. 1160 to govern the sale and disposition of LASEDECO assets.
Section 10 requires that all assets of LASEDECO, including farm machinery and equipment, be turned over to the Board of Liquidators.
Section 10 requires that LASEDECO assets be sold at public auction, with proceeds used to pay off LASEDECO’s accounts with commercial firms.
Section 10 mandates that the net proceeds be transferred to the National treasury.

Section 10 provides that lands whose awards, allocations and/or assignments have been cancelled and or annulled must be disposed of and awarded through negotiated sale.
Section 10 limits negotiated sale to qualified applicants of the cancelled and/or annulled awards, allocations, or assignments.
Section 10 sets the sale price as reasonable.
Section 10 allows payment in either of these ways:
- Cash; or
- Payment for a period of not more than five (5) years from the date of execution of the sale, with interest at six per cent (6%) per annum.