State-run Land Bank of the Philippines (LANDBANK) clarified that it is not liable for the P28.49 billion in compensation ordered by the Court of Appeals (CA) to be paid to Hacienda Luisita, Inc. (HLI).

In a statement on Wednesday, the bank said the amount will be charged to the Agrarian Reform Fund (ARF), which is owned by the National Government and managed by the Department of Agrarian Reform (DAR).

“LANDBANK wishes to clarify that the Bank was dropped as a party respondent to the just compensation case by the (CA) in its decision on April 30, 2024,” it said. “(Our) designated role is as custodian of the ARF, in charge of carrying out disbursement instructions by the DAR.”

LANDBANK also noted that the ruling is not final. “A Motion for Reconsideration was filed by the DAR in May 2025 and is awaiting resolution. If sustained by the CA, DAR may elevate the case to the Supreme Court (SC),” it added.

In its 35-page decision, the CA said the Tarlac trial court committed errors in computing the just compensation to HLI.

It stressed that the amount must be fair and aligned with the guidelines under the Comprehensive Agrarian Reform Law. The ruling covers approximately 4,500 hectares of land formerly owned by the Cojuangco family.

“Respondents are ordered to pay petitioner the total amount of P28,488,944,278.71 as just compensation as of 30 April 2025, without prejudice to the accrual of interest until fully paid,” the CA ruling read.

The case stems from the landmark 2011 Supreme Court decision ordering the distribution of nearly 5,000 hectares of Hacienda Luisita land to around 6,000 farmer-beneficiaries. That decision was upheld by the high court in 2012.