CDA-CAR head scores cooperativism, urges local coops to hire professionals to hasten its operation

February 26, 2022 Metro BLISTT

BAGUIO CITY – The new Cooperative Law (RA 11364), powers of the Cooperative Development Authority (CDA) has expanded to 37 while sectoral representation has been strengthened, according to Marietta Hwang, newly installed CAR- Regional Director of CDA.
Regional Director Hwang reported that there are 1,297 cooperatives registered with their agency, the majority were of its business operations are classified into multi-purpose and credit, and its membership are largely farmers.
To date, CAR has six unions and 7 federations under the cooperative scheme.
Beneco Issue
RD Hwang emphatically clarified:” Beneco is CDA registered cooperative on Nov. 11, 2020.”
“So definitely, legitimate bilang isang cooperative,” said Hwang, who led other CDA regional officials during the PIA-Kapihan held on Tuesday (Feb. 22) at the Ecolodge here.
The forum marks the agency’s 30th anniversary with its theme: “ Sustaining the Gains, Leaping Towards Quality and Productivity.”
On the issue of capital share, the CDA official explained the difference of newly organized cooperatives , from the start shares are paid, but in the case of Beneco…”existing na siya matagal na, tapus biglang nag convert ng registration sa CDA.”
“So, kailangan nilang icomply ang mga requirements na lahat ng miembro ay may share kaya po siya (Beneco) ay nangungulekta, kasi kami mismo, part ng requirements naming sa kanila, ipakita mo sa amin kung sino ang miembro mo. Pag wala kang share hindi ka miembro,” the CDA official said.
She reminded members to demand an official receipt which shall specifically state payment of share capital. Hwang further said it’s not simply paying capital shares, but there is the matter of subscription contract (subscription agreement is a formal agreement between a company and an investor to buy shares of a company at an agreed-upon price).
On the conduct of general assembly, by law, CDA has required cooperatives to conduct annual general assembly (GA) based on the date prescribed on their By-Laws.
Hwang clarified that before that date of the “scheduled” GA (referring the Oct 2,2021), CDA has already issued an order not to hold the meeting, pointing out some “questions” that were raised.
“Who are going to vote in the general assembly..eh wala pa silang miembro , wala pang nagbabayad, wala pang nagbibigay ng membership fee…”In that case hold niyo muna ang election, “Hwang said.
Despite the CDA order, the general assembly was held, which led a senior CDA official in declaring the said meeting was “illegal.”
Hwang revealed that she was the one who issued the notice to cancel said general assembly.
“Ako ang inutusan na padalhan sila ng notice na i-cancel (GA), ako ang naka pirma, pina cancel ko, pero itinuloy nila,”Hwang pointed.
However, Hwang said her agency is happy, the fact that (Beneco) officials have been going to their agency to meet and accomplish requirements regarding its cooperative status.
For the record, Beneco was organized and registered as a non-stock, non-profit service-oriented entity on March 20, 1978, and was granted by National Electric Authority (then a Commission) the sole franchise to operate an electric light and power service in Baguio and Benguet for fifty (50) years.
Hwang led other CDA regional officials in the press forum which marked the agency’s 30th anniversary with its theme: “ Sustaining the Gains Leading Towards Quality and Productivity.”
CDA’s new structure-sectoral representation strengthened
Years, the clamor by the public for a change has finally met with the new CDA charter, which paved the way in reorganizing and strengthening the agency.
The new CDA charter mandates the creation of a Board of Directors (BoD). Each director will represent a cluster of cooperatives instead of a region.
These BoD represent the following cooperative sectors: 1. Credit and financial services, banking, and insurance; 2. Consumers, marketing, producers, and logistics;3. Human services: health, housing, workers, and labor service; 4. Education and advocacy; 5. Agriculture, agrarian, aquaculture, farmers, dairy, and fisherfolk;6. Public utilities: electricity, water, communications, and transport.
The new charter also recognizes sectoral apex organizations and a national alliance of cooperatives. These groups shall serve as the overall consultative and coordinating body with the CDA.
Cooperativism, challenges
Hwang said her agency was doing its job as a regulator and developer even in the pandemic, but some of its functions especially onsite physical training experienced difficulties. To address the problem, the CDA official launched its CoopNet, utilizing internet communications leading to online services.
However, agency officials reported that internet communication post a big challenge especially in far-flung areas.
Hwang clarified “cooperatives are privately organized, they have their own set of officers, and CDA has no function of organizing coops, we are just registering.”
The official further said “CDA does not manage cooperative …walang paki alam ang gobierno doon,” even as she encouraged individuals and groups to form their cooperative which gives “more” benefits to its members being a community-based entity, and develop entrepreneurship thereby hastening economic growth.
CDA registered cooperatives enjoy exemptions from income tax, value-added tax, percentage tax and documentary tax. Hwang was told by local cooperative officials that salaries of their officers and benefits of their members are “comparable” if not “higher” compared to other private companies.
To meet changing times, the CDA official called on local cooperatives to hire the services of managers, accountants to professionalized further its operations, noting that a number of them acquire services through volunteerism.
Hwang pointed out that cooperatives are required to submit properly audited financial reports.
Community Development Fund (CDF)
Cooperatives are mandated to utilize three percent from their net surplus for community development projects.
Regional Director Hwang sees the day that CDA-CAR will have its building to further cater to the needs of the region.
Primo Agatep/ABN