State-run Land Bank of the Philippines said Thursday it bears no liability in the P28.49-billion just compensation ordered by the Court of Appeals (CA) in favor of Hacienda Luisita Inc. (HLI), saying it was dropped as a party to the case last year and acts only as custodian of public funds.
LandBank issued the clarification after the CA, on April 25, 2025, ordered P28.49 billion in compensation to Hacienda Luisita for 4,500 hectares of land in Tarlac distributed under the agrarian reform program.
“The bank was dropped as a party respondent in the case [CA-G.R. SP No. 180821] through a Court of Appeals decision dated April 30, 2024,” LandBank said in a statement Thursday.
The state-run bank said its role is limited to custodianship of the ARF and that disbursements are made only upon instructions from the DAR.
The compensation is chargeable against the Agrarian Reform Fund (ARF), which is owned by the national government and administered by the Department of Agrarian Reform (DAR), according to LandBank.
The CA, in a 35-page decision, overturned the earlier valuation of P304 million made by LandBank and approved by a special agrarian court, ruling that the amount was grossly inadequate.
The appellate court said DAR and LandBank failed to consider audited financial statements and actual production data submitted by HLI.
The ruling computed the just compensation using valuation guidelines under Section 17 of Republic Act 6657, with adjustments to account for delayed payment since 1989.
The total due as of April 30, 2025, reached P28.49 billion, excluding accrued interest. However, the CA decision is not yet final and executory.
The DAR filed a motion for reconsideration in May 2025 and is awaiting resolution. If denied, DAR may elevate the case to the Supreme Court.
LandBank said it would comply with any final directive from the courts and that it continues to coordinate with DAR in handling agrarian reform fund disbursements.
The long-running dispute traces back to a 2011 Supreme Court decision that ordered the redistribution of Hacienda Luisita lands to more than 6,000 farmer-beneficiaries.
