CoA flags P10.13-B LRA fees without approval

The Land Registration Authority (LRA) collected P10.13 billion in service fees from 2012 to 2025 for its computerized services without prior approval from the Department of Economy, Planning and Development (DEPDev), state auditors said.

In its annual audit report released on 28 October, the Commission on Audit (CoA) flagged the collections, which stemmed from a build-own-operate (BOO) agreement between the LRA and Land Registration Systems Inc. for the implementation of the Land Titling Computerization Project.

Under the 1999 implementing rules and regulations of the Build-Operate-Transfer Law, amendments to a contract, including changes in government undertakings, require consultation with DEPDev’s Investment Coordination Committee (ICC).

CoA cited a 2023 letter from the ICC secretariat stating that clearance from the committee would be necessary if the additional services and corresponding fees constituted amendments to the existing BOO agreement.

The audit observation repeated a recommendation made in 2024 that remained unimplemented.

The fees covered the LRA’s Geo-Spatial Query Service, authentication of Electronic Certificates Authorizing Registration, registration of deeds transactions, operations and maintenance, and a share from the issuance of certified true copies of registry documents.

Data from the LRA’s Accounting and Information and Communications Technology divisions showed that these services generated P5.25 billion in collections in 2024 and 2025 alone.

CoA also noted that the Geo-Spatial Query Service, which had been suspended since 2023, had generated more than P1 billion in fees.

In light of its findings, the audit agency sought a legal opinion from the Department of Justice, the LRA’s mother agency, to determine whether the authority could legally impose and collect the service fees.