Cooperatives Philippines

SPECIAL NATIONAL CONVENTION AFFIRMS NEW SET OF ELECTED OFFICERS OF ATING KOOP PARTY LIST

2012-01-29T00:59:00.000-08:00

AMPARO RIMAS LEADERSHIP

The Special National Convention of ATING KOOP Party List, held last January 21, 2012, has confirmed its new set of officers, led by Ms. Amparo T. Rimas, as president and by Rito V. Fabella, as executive vice president.

The new set of officers were elected, under the reorganized ATING KOOP leadership, during its Central Committee Meeting held last December 18, 2011, according to ATING KOOP officials.

The other officers are: Aurelio Jose, Jr., vice president for Luzon; Jose Y. Torres, Jr., vice president for Visayas; Lancelot B. Padla, vice president for Mindanao; Atty. Romeo D. Candazo, secretary general; Erlinda Duque, treasurer; and Mona Benosa, auditor.

Also among the officers are: Roberto C. Mascarina, executive director; Geronimo Zapata, chair, committee on Finance; Rey Gilbas, chair, committee on Membership; Dr. Cristina Salvosa, Ph.D., chair, committee on Rules; Federico Pineda, chair, committee on Political Affairs; Atty. Eden Sarne, chair, committee on education, platforms and programs; and Fr. Anton C.T. Pascual, independent Director.

RAFAEL PUENTESPINA GROUP

Meanwhile, another group who also claims leadership of ATING KOOP listed its officers, including Rafael Puentespina, president; Proculo Sarmen, executive vice president; Reynaldo Golo, treasurer; and Gloria Futalan, secretary; among others, based on published reports.

The first ATING KOOP Party list Rep. Isidro Q. Lico was quoted in said reports as saying that "they were trying to prevent an "intra-party conflict" by convening the central committee of ATING KOOP last December 19, 2011 where they agreed to reorganize the party list."

RESOLUTIONS OF SPECIAL
NATIONAL CONVENTION

According to the Amparo Rimas faction of ATING KOOP, also approved/confirmed during the January 21, 2012 Special National Convention are resolutions on: 1) the expulsion from the Party of the No. 1 Nominee of ATING KOOP; 2). resolution of support to the No. 2 nominee to sit as the ATING KOOP Party list representative; 3). approval of the copies of Constitution and By-laws as amended in the 2nd national convention; 4). approval of the minutes of the proceedings of the 2nd National Convention; 5). confirmation of the filling up of vacated positions of the Central Committee; and 6) approval of ATING KOOP Projects for FY 2011-2012.

(END).

CDA CHAIRMAN EMMANUEL M. SANTIAGUEL, ADMINISTRATOR NELON B. ALINDOGAN AFFIRM PARTNERSHIP, WISHES SUCCESS OF ATINGKOOP PARTYLIST SPECIAL NATIONAL CONVENTION

2012-01-24T01:00:00.000-08:00

Top officials of the Cooperative Development Authority (CDA), led by Chairman Emmanuel M. Santiaguel, Ph.D., and Administrator Nelon B. Alindogan, have affirmed CDA's partnership with ATING KOOP Partylist, even as they extended "best wishes for the success of ATING KOOP Partylist's Special National Convention."

ATING KOOP conducted its Special National Convention last Jan. 21, 2012 at Max's Baclaran, Paranaque City with some 134 delegates attending, representing member-delegates from Luzon, Visayas and Mindanao, to "attend to pressing matters that need the action of its general membership."

"CDA has always been a partner of the ATING KOOP Partylist in its embodiment of the cooperative principles and its advocacy to strengthen and empower the cooperative movement nationwide," said CDA Chairman Santiaguel in a published message to the Special National Convention.

For his part, Administrator Alindogan said," it gives me great pleasure to extend my warmest greeting and best wishes for the success of ATING KOOP Partylist Special National Convention."

Administrator Alindogan was among the guests of honor during the Special National Convention, who addressed the officers and national delegates of the cooperative partylist.

Dr. Santiaguel also extended his "greetings to the ATING KOOP Partylist for holding its Special National Convention," in his published message.

"Keep on! CDA will always be a helping hand, a friend and a partner in need and in deed. We are confident that your pro-active style of leadership, ATING KOOP Partylist will be much stronger, bigger and more dynamic," Chairman Santiaguel said.

He added that the "Cooperative Development Authority and its present management has always been a firm advocate of advancing the cooperative movement nationwide through exemplifying the agency's deep commitment, dedication, and internalization of its mission and vision to carry on its mandate, and in so doing, encouraging the sector to epitomize the highest form of ethical standard of Good Governance."

On the other hand, Administrator Alindogan said," We, in the Cooperative Development Authority commend you for your commitment and dedication to the advancement of your members as well as the other cooperatives through the various programs and initiatives that you have undertaken and will undertake in the coming years."

He also expressed confidence that through the convention, ATING KOOP "will be able to develop programs to promote cooperative excellence. I hope issues and concerns relating to this and the enhancement of your capabilities to deliver services to your members will be successfully addressed during this gathering," Administrator Alindogan emphasized.

"In the days ahead, I believe that ATING KOOP will make a difference in highlighting the essence of cooperatives in uplifting the members in particular as well as the country in general," he added.

Meanwhile, on the day of the ATING KOOP Special National Convention, a paid advertisement was published by a certain RAFAEL A. PUENTESPINA, representing himself as President of ATING KOOP Partylist. The advertisement came out on page B-5 of the Philippine Star, Jan. 21, 2012 issue.

It says: "Notice is hereby given to all members of ATING KOOP Party List and all concerned, that the Special National Convention called by a certain AMPARO RIMAS, representing hereself as President of the ATING KOOP Party list on January 21, 2012 at Max's Restaurant in Baclaran, Paranaque, or in any other place, is UNAUTHORIZED and NOT SANCTIONED BY THE DULY ELECTED CENTRAL COMMITTEE. Ms. Rimas and those in her group, ARE NOT LEGITIMATE MEMBERS OF THE CENTRAL COMMITTEE. (END).

"..ENSURING THE LONG-TERM SUSTAINABILITY OF OUR MICROFINANCE INDUSTRY.." : BANGKO SENTRAL NG PILIPINAS GOVERNOR AMANDO M. TETANGCO

2012-01-23T01:09:00.000-08:00

(Following are excerpts from the speech of Governor Amando M. Tetangco of the Bangko Sentral ng Pilipinas. The speech was delivered during the launching of the "Paeng Awards" and the signing of the memorandum of agreement of MIDAS, on Jan. 10, 2012.)

MICROFINANCE MILESTONES

"...Indeed, today's celebration underscores the many milestones we have accomplished toward ensuring the long-term sustainability of our microfinance industry.

Among others, we are globally recognized as one of the first countries that developed a national strategy, regulatory framework, and performance standards for microfinance.

Since then, we have evolved from simply providing microcredit; today, microfinance is a range of services that meet the different demands of the local market.

MICROFINANCE SERVICES

Now, microfinance clients enjoy access to not just to loans for their small businesses but also to savings products, housing microfinance loans, micro-agri loans, and microinsurance.

Aside from the products, the microfinance players have also significantly increased and diversified. More banks are now seeing the viability and profitability of providing meaningful microfinance services to our country's entreprenerial poor.

Thus, we now have rural banks, thrift banks and even large banks involved in the microfinance industry.

TECHNOLOGICAL SOLUTIONS

Much has also changed in the way microfinance services are delivered. Today, microfinance clients are able to pay their loans, make withdrawals or deposits through their mobile phones.

With our regulations in electronic money (e-money) and the meaningful partnerships created by banks and e-money issuers, the mobile phone or even local merchant in the villages becomes a channel to facilitate access to financial services.

Indeed, technological innovations have created transformative solutions that have raised efficiencies of microfinance institutions while lowering costs for their clients.

LEGACY THAT EMPOWERS

These developments are all fruits of may innovations and pioneering ideas. With the launching of the "Paeng Awards", there is a new incentive for such trailblazers.

With a clear vision, a pioneering spirit, and a dedicated resolve to see our vision turn into reality. I am confident we will continue to break new grounds and reach our goals for the Philippine microfince industry.

Such was the vision, the spirit and the resolve of Gob Paeng, the person whose legacy lives on and continues to empower Filipinos..."

(END).

"...COOPERATIVE DEVELOPMENT AUTHORITY'S ACTING EXECUTIVE DIRECTOR ORLANDO R. RAVANERA "...FEARS ANOTHER 'SENDONG' IN CAGAYAN DE ORO CITY..."

2012-01-22T01:00:00.000-08:00

(Note: Cooperatives Philippines came across this news story, published in Sun Star Cagayan de Oro. This was attributed to the Acting Executive Director of the the Cooperative Development Authority (CDA), Orlando R. Ravanera. He is listed as the concurrent CDA Regional Director based in Cagayan de Oro City.

Cooperatives Philippines felt that this is a public-interest story that should be of equal interest to other cooperatives.)

"ENVIRONMENTALIST FEARS
ANOTHER 'SENDONG' IN ORO"

By Nicole J. Managbanag
Sun Star Cagayan de Oro
January 18, 2012

AN ENVIRONMENTALIST is urging the government to "clear all riverbanks and flood-prone areas with people" the soonest to avoid another "Sendong-like" tragedy that might come in six months' time.

Orlando Ravanera, an environmentalist who is also the regional director of the Cooperative Development Authority (CDA), said there might be another flood coming in the city that is even much worse than "Sendong."

Ravanera had been tagged as a "prophet of doom" when he revealed the coming of a flash flood two years ago if illegal activities in the mountains such as mining and logging would not stop.

This time, he is again calling officials and proper agencies to stop these illegal activities.

"During that time, nobody listened to me. They took it for granted and instead laughed at me, thinking I was just making stories to scare the people. I hope this time, they will listen to me," he said.

Ravanera issued the call again after Korean expert Do Jeong H from Doalnara Philippines made a survey recently in the city and in the mountains.

Based on the survey, he said, " another worst flood will come due to illegal mining and logging" in the mountains, the same reasons that residents in the city cited why "Sendong" had caused much destruction to lives and properties last month.

"This time, local government units and other sectors should act now and be vigilant by stopping these illegal activities to prevent another devastation to happen again," Ravanera said.

He hoped that this time, officials will listen to his warning "before it is too late..."

(Note: Comments are welcome. END).

NATCCO FEDERATION, FCCO-CENTRAL LUZON REGIONAL LEAGUE SLATES TRAINING SCHEDULE, LAYS DOWN RULES ON REQUEST FOR GROUP, IN-HOUSE SEMINARS BY COOPERATIVES

2012-01-18T01:00:00.000-08:00

To meet the seminars and training needs of cooperatives' officers, as required by the Cooperative Development Authority (CDA) to be completed this 2012 and 2-13, the Central Luzon Regional League (CLRL) of the Philippine Federation of Credit Cooperatives (PFCCO) has issued its 2012 schedule of seminars and trainings.

The proposed training venues for these are Manatal Multipurpose Cooperative Training Hall, Bunsuran, Pandi, Bulacan; Caniogan Development and Credit Cooperative, Caniogan, City of Malolos, Bulacan; Meycauayan Audio-Visual Room, City Hall, Meycauayan City, Bulacan; or San Lorenzo Multipurpose Cooperative Building, Poblacion, Balagtas, Bulacan.

In lieu of these set seminars, PFCCO-CLRL said it will also accept requests from primary cooperatives for a group, in-house training/seminars to be held in the cooperatives' office or place of choice, subject to available dates and to CLRL's conditions.

Under this set-up, the food, venue, and reproduction of seminar materials will be shouldered by the host cooperative, including the speakers' honorarium and transportation costs; as well as the payment of a royalty fee to CLRL, to cover the costs of seminar certificates and other training-related expenses, according to CLRL.

The seminar/training topics, dates, speakers, venues and fees are:

COOPERATIVE MANAGEMENT AND GOVERNANCE

A 28-hour course required to be attended by the cooperative's General Manager/CEO, and members of the Board of Directors, this is scheduled to be held at Manatal Multipurpose Cooperative on:

January 24, 25, 26 (at Hall of Fame, CLRL); February 22, 23, 24; March 22, 23, 24; April 5,6,7; May 24, 25, 26; and June 28, 29, 30, all at Manatal Multipurpose Cooperative.

Confirmed trainor is Enan L. Palabyab.

FINANCIAL MANAGEMENT

Also a 28-hour course for members of the Board of Directors and the Treasurer, this scheduled on February 15, 15, 17 at Manatal Multipurpose Cooperative, with Ms. Mildred S. Esguerra, as trainor.

CONFLICT MANAGEMENT

To be attended by members of the Board of Directors; Ethics Committee; Mediation and Conciliation Committee, this 16-hour seminar is scheduled on February 11, 18, 25. Trainor is Atty. Norie Hernandez.

PARLIAMENTARY PROCEDURE

To be conducted by Mildred S. Esguerra, as trainor, this 16-hour course for the members of the Board of Directors, and Secretary, is scheduled on March 20-21.

Please confirm the availability of these trainings/seminars with the office of the PFCCO-CLRL

NATCCO FEDERATION TRAINING SCHEDULE FOR JANUARY 2012:

The Education, Training and Consultancy Group of NATCCO has prepared some training events for January that will kick off the cooperative learning experience this year:

a). Rules Formulation - January 23-24, 2012 at NATCCO.

b). Records Management - January 28-29, 2012, at Villa Caceres, Naga City.

c). Counterfeit Detection -January 30-31, 2012 at NATCCO.

Interested parties may confirm attendance by calling tel. nos. (02) 912-56-17; 913-70-11 (loc. 220); 09204815317, or by sending an e-mail to training@natcco.coop

So there. (END)

STARTING THIS YEAR (2012), COOPERATIVE OFFICERS MUST FINISH TRAINING REQUIREMENTS BY 2013, AS LISTED BY CDA, OR ELSE THEY CANNOT RUN IN ELECTIONS

2012-01-15T01:00:00.000-08:00

Recognizing the limited resources of many cooperatives and considering the equally few training providers, the Cooperative Development Authority (CDA) has a devised a staggered implementation of the required trainings to be attended by the officers of the country's cooperatives.

CDA, in its Memorandum Circular No. 2011-27, dated December 22, 2011 also identified the topics of priority training courses which the cooperative officers must finish in two years' time covering 2012 up to 2013.

Article 44 of RA 9520 and Rule 7, Sec. 5 of its Implementing Rules and Regulations, enumerate the minimum training requirements for officers of the cooperative, as a necessary step towards the professionalization of these officers.

TRAINING COURSES STARTING 2012

Starting this year, the following are the training courses, as prioritized by CDA:

For Board of Directors:

     a).   Basic Cooperative Course; b). Cooperative Management and Governance; c) Financial Management; d) Policy Development; e) Leadership and Value Re-Orientation.

     In 2013, the courses are: a) Conflict Management; b). Parliamentary Procedures; c). Strategic Planning; d). Orientation on Labor and Other Related Laws.

For Board Secretary:

     In 2012, the courses are a). Basic Cooperative Course; b). Records Management (Non-Financial Transaction); c). Basic Computer Program.

     In 2013, the Board Secretary must take up Parliamentary Procedures.

For Treasurer:

     In 2012, Basic Cooperative Course; b). Records Management; and c). Financial Transactions. For 2013, a). Cooperative Standards; and b). Investment and Banking Procedures.

For Audit Committee:

     In 2012, a). Basic Cooperative Course; b) Basic Accounting for Non-Accountants; c). Internal Control including Inventory System; and d). Cooperative Standards.

     For 2013, a). Audit Management; b). Records Management; and c). Basic Computer Program.

For Election Committee:

     In 2012, a). Basic Cooperative Course; b). Rules Formulation; and c). Leadership Values Re-Orientation.

     In 2013, a). Records Management; and b). Basic Computer Program.

For Mediation/Conciliation:

     In 2012, a). Basic Cooperative Course; b). Leadership and Values Re-Orientation; and c). Conflict Management.

     In 2013, a). Records Management; b). Effective Management; and Basic Computer Program.

For General Manager/Chief Executive Officer:

     In 2012, a). Basic Cooperative Course; b). Cooperative Management and Governance; c) Cooperative Standards; d). Leadership and Value Re-Orientation; e). Strategic Planning and Management.

     In 2013, a). Human Resource Management; b). Effective Communication Skills; c). Engtrepreneurship; d). Business Management Skills; e). Labor and Other Related Laws; f). Computer Literacy Course.

     And for the proper reporting and monitoring of training compliance, the Cooperative Development Authority also issued Memorandum Circular No. 2011-26: "Guidelines on the Submission of Cooperative's List of Officer and Training Undertaken/Completed."

I have just some observations to make. Just maybe, there should be some kind of training for all these officers, particularly the elected/appointed officers. And this one I think, should be some kind of familiarization on how to operate a computer.

We cannot assume that they are all computer-literate. So, there. (END)

THE 21ST, NEWEST TYPE OF COOPERATIVE IS RECOGNIZED BY THE PHL COOPERATIVE DEVELOPMENT AUTHORITY: THE JOB CONTRACTING/SUB-CONTRACTING WORKERS SERVICE COOPERATIVE

2012-01-12T01:43:00.000-08:00

There is a new type of cooperative, in fact the 21st of its kind, which was recently 'recognized' by the Cooperative Development Authority.

This is the "Job Contracting/Sub-Contracting Workers Service Cooperative."

In its Resolution No. 410, dated December 14, 2011, the Board of Administrators of the Cooperative Development Authority approved the "Policy Guidelines for Job Contracting/Sub-Contracting Workers Service Cooperative; and Multi-Purpose Cooperative with Job Contracting/Sub-Contracting Operation."

   THE NEW COOPERATIVE DEFINED

Issued under Memorandum Circular 2011-25, dated December 9, 2011, the guidelines define a Job Contracting/Sub-Contracting Workers Service Cooperative, as one which refers to a duly registered cooperative the members of which are natural persons and the business activity is providing job contracting/sub-contracting services to clients..

On the other hand, a Multi-purpose Cooperative with Job Contracting/Sub-Contracting Operation, refers to the cooperative duly registered with the Authority as multi-purpose where one of the lines of business in its operation is providing job contracting/sub-contracting services to clients.

MINIMUM PAID-UP CAPITAL; PROHIBITIONS

The minimum paid-up capital of the cooperative is One Million Pesos (Php 1,000,000). This is provided further that the cooperative shall conform to the rules that at least 25% of the authorized capital had been subscribed and at least 25% of the subscribed had been paid up, and that no individual member holds more than 10% of the subscribed capital.

During the first two years of operation, it will be allowed to operate only in one region, after which it may be allowed to expand its area of operation and upon substantiation that no violation was committed during the period of its operation, the guidelines say.

NO LABOR-ONLY CONTRACTING

This new type of cooperative is also prohibited to enter into labor-only contracting, which is referred to as an arrangement where the cooperative recruits, supplies or places workers to perform a job, a work or service for a client, where any of the following elements are present:

a. The cooperative does not have substantial capital or investment which relates to the job, work or service to be performed and he employees-members recruited, supplied or placed by the cooperative are performing activities which are directly related to the main business of the client; or

b. The cooperative does not exercise the right to control over the performance of the work of the contractual member-worker.

The guidelines also prohibits the registration of a cooperative organized by an existing manpower agency or of business engaged in same business.

   THIS NEW COOPERATIVE VS
   A 'WORKERS COOPERATIVE'

So, there. The question that comes to mind now is how different is this "new" cooperative from a "Workers Cooperative", as provided for under R.A. 9520? Now, that is another matter that can be taken up separately. (END)

BanKO, THE FIRST FULLY MOBILE SAVINGS BANK, CAN MAKE COOPERATIVES RUN FOR THEIR MONEY

2012-01-10T01:00:00.000-08:00

What do you get when you cross a BANK and a cooperative/microfinance institution?

You get a savings bank like "BanKO", the first fully mobile savings bank in the country.

Time was when a bank only accepts deposits from the public, mostly small people; and lends only to big business who has the required loan security/collateral.

Then, small depositors are just that - savers. And banks value them as cheap source of funds for lending to big business. Micro, small and even medium-scale businesses could hardly borrow from banks, if ever.

It was to cater to the borrowing needs of this big number of small savers, small businesses that usurers, 5-6 operators; and later the microfinance institutions (cooperatives, foundations and non-government organizations) came about.

But why are banks now going into the realm of microsavings, microfinance and microinsurance?

One, microfinance institutions, particularly foundations, non-government organizations, and to certain extent, cooperatives, have shown that this 'grey' area of banking-like activities can be, and is profitable.

The Bangko Sentral ng Pilipinas (BSP) has adopted it as a policy to encourage microfinance among banks. It has issued Circular 272, issued January 30, 2001 to govern the participation of banks in microfinance.

And another reason is that commercial banks/universal banks are now required by law to lend as much as 25% of their loan portfolio to small farmers, fisherfolk, etc.

The Rural Bankers Association of the Philippines (RBAP) reported that "microlending has become mainstream, with 287 of RBAP members said to be microfinance-engaged and six more as microfinance-oriented banks."

Now, back to "BanKO", which was launched nationwide recently. With only P100, anyone can open a savings account with BanKO. As an additional sweetener, it gives depositors a 1% annual interest with FREE INSURANCE.

BanKO's advertisements say that "as long as their (depositors') daily balance is at least P2,000 for the past 6 months, the FREE insurance coverage is five times the depositor's average daily balance (ADB).

This means that an ADB of P5,000 gives depositors an insurance coverage of P25,000.

A take-off from the deposit-based lending scheme started by cooperatives and other microfinance institutions, a low-interest loan is also given to BanKO account holders.

This can be as much as two times the account balance. "That means no more loans from informal loan institutions that charge unreasonably high interest rates," says the BanKO advertisement.

Another upcoming BanKO service is the PaniguroKO, a microinsurance product that gives clients P50,000 coverage for accidental death; P5,000 assistance in case of fire; P2,500 assistance in case of flood, typhoon and earthquake, a coverage period of one year, and a low subscription fee of just P365.

Moreover, BanKO is accrediting partners. Already, pawnshop giant Tambunting; and Generika Drug Store chain were registered as BanKO partners.

I even saw in the list a cooperative in Cavite (Cavite Farmers Marketing Cooperative). If your institution wishes to become a BanKO partner, call (02) 754-9980, or e-mail info@banko.com.ph, or visit www.banko.com.ph

BanKO's head office is at: BPI Globe BanKO Head office, 4th floor, BanKO Center, Ortigas Avenue, North Greenhills, San Juan, Metro Manila.

Indeed, BanKO, like other other microfinance-oriented banks (savings, rural banks, etc.) can become a stiff competition to cooperatives and microfinance institutions. So, watch out for these institutions in your area.

COOPERATIVES particularly, should adapt to these changes in the environment, if they are to continue to survive and be relevant.

So there. (END).

"..ATINGKOOP'S SEAT IN CONGRESS HAS NOT BEEN VACATED, AS ATTY. ISIDRO Q. LICO IS LEGALLY OCCUPYING IT..."

2012-01-08T14:07:00.000-08:00

(Earlier, we wrote of the leadership "intramurals" during the Christmas holidays that beset ATINGKOOP Party List. It was reported in the newspapers that Rep. Isidro Q. Lico had been expelled and replaced by a second nominee.

Now here comes another news report on the subject. For purposes of balance reporting, and for lack of direct communications with the "protagonists", we decided to reprint this news item by Wendell Vigilia, as reported in the Jan. 6, 2012 issue of the Malaya Business Insight):

"TERM-SHARING RIFT ALSO HITS PARTY-LIST"

..."ATING Koop (Adhikaing Tinataguyod ng Kooperatiba) party-list group Rep. Isidro Lico continued to defy party officials' moves to replace him based on a term-sharing agreement with another nominee, saying his group has been reorganized after questionable transactions of some members in the use of their P15-million pork barrel were uncovered.

Lico, in a press statement, said former Marikina Rep. Romeo Candazo has been replaced as Ating Koop secretary general after he and some people failed to explain the unauthorized transfer of P15 million in congressional development funds in support of Ating Koop projects.

Lico said he tried to prevent an "intra-party conflict" by convening the contral committee last Dec. 19 (2011), wherein it was agreed that the party-list would be reorganized and a new 15-member leadership elected.

He said those who failed to be reelected launched a "smear campaign" to make it appear that he is being replaced as their representative.

"They were that desperate since we were really determined to weed out undersirable officers and members to ensure the integrity of the party," Lico said.

Lico alleged that his reported expulsion was the handiwork of eight former members of the central committee who are in Luzon.

He said he has also reorganized his congressional staff after finding out that "ghost consultants" were hired using his forged signature.

Lico also released Ating Koop's official communication to Speaker Feliciano Belmonte, Jr., informing him that "AK's seat in Congress has not been vacated, as Atty. Lico is legally occupying it, having been recognized (by) the Comelec and the House as its official repesentative until June 30, 2013."

In a December 15 letter to Belmonte, Candazo informed the House that the central committee of the nationwide cooperatives movement has replaced Lico with Roberto Mascarina, its second nominee.

Candazo's group wanted to remove Lico for allegedly failing to comply with the unanimous decision of the central committee directing him to "uphold the validity, legality and binding effect of the (term-sharing) agreement." -Wendell Vigilia.

(My note: So, there. It's up to the readers to appreciate the two reports. Other cooperatives, who also supported ATING KOOP in the last election, deserve to hear both sides of the issues. END).

WHAT IS THE "BEEF" AGAINST MINING OF THE "SAVE PALAWAN MOVEMENT"?

2012-01-06T00:23:00.000-08:00

About a week or two before Christmas 2011, there was quite an exchange of half and full-page advertisements between two, apparent protagonists: The Chamber of Mines of the Philippines vs. the Save Palawan Movement.

It seems to me that the two groups are raising a ruckus, ostensibly to catch the attention of the national government, which it was reported, was finalizing a definitive policy on what appears to be the contentious subject: MINING.

Mining is BIG business and naturally, can take care of its own. So, we wish to hear out what Save Palawan Movement has to say about its advocacy. And as they say, here's the beef!

"SAVE PALAWAN MOVEMENT: OUR
STAND ON MINING

The Save Palawan Movement is not against all mining. However, we believe that key to biodiversity sites - - especially ISLAND ECOSYSTEMS, where there are farmlands, coral reefs, mangroves and many endemic species - - should be off-limits.

Palawan is our rallying cry.

BIODIVERSITY IS IRREPLACEABLE

1. The country has 3% old growth forest left, and much of this is in Palawan. We cannot let this go. Mining and logging go together because you cannot mine without cutting trees.

2. Palawan has 17 Key Biodiversity Sites; 7 protected areas; 2 World Heritage sites.

Yet most of mining applications in Palawan overlap key biodiverstiy sites. We need to remember that reforestation does not not restore lost biodiversity.

3. There are many laws designed to protect Palawan, including its declaration as a UNESCO Man and Biosphere Reserve; Mangrove Reserve and Wildlife Reserve.

Three-fourths of Palawan has been declared protected. The Palawan SEP law states that there should be no mining in natural forests. Mining in Palawan is a gross violation of these laws.

4. The stand of miners that there can be mining in the southern part of Palawan while leaving the Northern Part for tourism is foolish to say the least. The southern part is equally rich in diversity. It is archaic thinking to believe that one can mine one part of the island without affecting the other.

WE CANNOT COMPROMISE
OUR FOOD SUPPLY

5. Palawan is very narrow, and the topography is steep. Any mining, being large or small scale, is a risk to the farmlands and fishing resources. Cutting down forests in the mountain causes erosion that kills coral reefs, and mine tailings spill into farmlands.

6. Citinickel is currently mining in Narra - the rice granary of Palawan - severely affecting farmers and fishermen, including those from indigenous communities that depend on the forests in the area. This must be stopped immediately if the law stating a commitment to the welfare of communities is to be followed.

7. Fifty percent 50% of the fish supply in Metro Manila comes from Palawan. But laterite tailings from open-pit mines spill into rivers and the ocean, where the chemicals are absorbed by fish. If ingested, laterite is toxic and can cause cancer.

WE HAVE NOT DEMOSTRATED
CAPABILITY TO REGULATE PROPERLY

8. A large-scale mining company had an accident early this year, and their barge carrying tons of nickel and other minerals fell into the sea because of bad weather. Our country is number one in terms of typhoons, so incidents like these are likely to happen over and over.

MINING IS NOT THE ONLY PATH
TO ECONOMIC DEVELOPMENT

9. The Mining Industry is putting pressure on the government to make big decisions now that the irreversible far-reaching implications on our future.

Even as the government, in Chapter 10 of the Philippine Development Plan 2011-2016, admits that it has not developed, nor is it applying, any standard for measuring environmental and social costs of mining.

Would it not be more prudent to first put in place such standards and institutional capability and to call for objective studies like those sponsored by the World Bank, before making decisions?

10. A total economic valuation (TEV) is even more critical in a fragile island ecosystem like Palawan with mountains, farmlands, mangroves, and coral reefs in and along a narrow sliver of land.

Mining in any form, whether large-scale or small scale, puts at risk the delicate weave of this ecological system. In fact, an initial TEV study of the Mt. Matalingahan Range in Palawan indicates that the economic costs far outweigh the benefits of mining.

11. The carbon credits of Palawan alone - Php 130 trillion in a future carbon market according to the Palawan Council for Sustainable Development - is more than double the value of the mineral lode of the entire country.

Exploring the merits of the non-timber produce of Palawan's forest also offers very exciting possibilities. These potential revenue sources are demolished if mining is allowed in this island paradise.

12. Past and present mining operations in Palawan have not yielded real economic benefit to Palawan. Bataraza, where Rio Tuba has been mining for 36 years, may be a first class municipality in terms of revenues but its poverty indicators are twice the national average - and it is ranked in the lowest 25% compared to other municipalities in the country.

Clearly, the so-called social benefits from mining have not been felt by the majority of the communities.

13. In Palawan, the PROVEN economic thrust is agriculture and eco-tourism, as demonstrated by the thriving economy of Puerto Princesa which earlier banned logging and mining, but its income from tourism in 2009 was Php 2.4 billion, and it exports 10,600 metric tons of fish annually.

If, in a place as majestic and beautiful as Palawan, choices are made towards an economic strategy which benefits only a few - and puts at risk the future of the greater good - what hope is there for the rest of the country?

The mining companies do not pay for the full cost of land, air, water, or of the minerals that are brought out to other countries where the downstream industries are located.

After all these years, the mining industry has no significant industrialization footprint in the country.

In other words, our poor are subsidizing the consumerism of the developed countries, especially the poor from Palawan.

That is not fair. Not when we can avoid the economic, social and environmental costs of mining and at the same time raise development financing by conserving our patrimony for the future generations.

We only have to examine our alternatives deeply and refuse to be cowed by the bullying and scare tactics of those who want quick decisions before we realize what the real score is.

We appeal to our government - please save Palawan from mining, before it is too late."

So there. (END).

THIS 2012, COOPERATIVE DEVELOPMENT AUTHORITY COMMITS 'IMPROVED SERVICE DELIVERY', LINES UP MAJOR PROGRAMS, ACTIVITIES

2012-01-03T01:00:00.000-08:00

Chairman Emmanuel Santiaguel of the Cooperative Development Authority (CDA) has committed this year (2012) that CDA will "persist with the goal of improving service delivery in the name of transparency, accountability and quality service".

In his New Year's message, Santiaguel also called on the CDA workforce to "take advantage of the opportunity to make a difference" and to contribute individually and as a group for the "betterment of CDA and of the cooperative sector".

"I could say fairly that we had accomplished a great deal for the year 2011," Santiaguel said even as he thanked the CDA officers and employees for their support.

At the same time, he hastened to clarify that CDA was not "halfway through with our goal."

"We still have a long and ardous way ahead of us before we reached our target of 20 million coop members by the year 2013; fully equipped our own personnel with skills and trainings and elicit the greatest form of commitment for CDA and lastly, to give recognition to whom and where it is due."

Seeking to debunk earlier perceptions of the CDA, Santiaguel vowed to:
       1. Continually enhance the quality of CDA program and services;

       2. Deliver prompt services to the public, following a culture of excellence, commitment, integrity and teamwork; and

       3. Act according with the law and public policy.

The CDA Chairman also announced the following major programs and activities for 2012:

       1. Completion of the guideline and standard for various types of cooperatives.

       2. Implementation of CDA Communication Advocacy Program;

       3.   Development and implementation of the Social Audit System of the Philippines.

       4. Development and implementation of the Coop Performance Audit.

       5. Conduct and implementation of activities in connection with the observance of the International Year of Cooperatives.

       6. Activation of the National Coordinating Committee on Cooperative Promotion and Development, in accordance with EO 95 from the national to the regional levels.

       7. Full implementation of MC 2011-02 (Simplified and Rationalized Guidelines in the Operation and Structure of Cooperative Development Councils).

      8. Crafting and implementation of a Human Resource Development Program for CDA,

      9. Holding of a CDA National Team-Building on March 12-17, 2012 in Bohol.

     10. Work for the ISO Certification of CDA Central Office and MEO.

     11. Renovation of CDA Central Office, and construction of 3 Extension Offices.

    12. Explore the means for the replacement of transport vehicles for the remaining Regional Office which were not accommodated last 2011.

    13. Forging a Memorandum of Agreement with LGU Coop Office and work for the inclusion of the cooperative agenda.

In pursuit of CDA's commitment to further improve its level of service delivery, Santiaguel also pledged to undertake the following:

    1. To have an efficient registration and effective regulation (of cooperatives), which will target to achieve: "No package deal on coop registration; zero backlog on amendments; no piece-meal evaluation of application; one-day processing of Certificate of Good Standing";

    2.   Equity-oriented Cooperative Promotion and Development.

     This will include, among other things, conducting meetings with cooperatives to expand membership; conversion of electric cooperatives; tapping local government offices to give incentives; encouraging weak coops to merge with strong ones; coop mapping and encouraging branching, and

3. Institutional Development.

    (Note: Cooperatives will monitor these CDA commitments. So there). (END).

WHAT IS HAPPENING TO ATING KOOP PARTY LIST? REP. ISIDRO Q. LICO REPORTED TO HAVE BEEN REPLACED BY SECOND NOMINEE, ROBERTO MASCARINA

2012-01-01T02:00:00.000-08:00

Less than a week before Christmas, there was this published report of an "intramural" in the ATING KOOP Party List leadership.

It was said that the central committee of Ating Koop has replaced the first nominee, Hon. Isidro Q. Lico with the party's second nominee, Mr. Roberto Mascarina.

It will be noted that the selection of Rep. Lico was attended also with some dramatic circumstances and apparent recriminations. It was also reported that quite a number of cooperatives-supporters of Ating Koop, then withdrew their support with the party list.

Later, a member of Ating Koop party list filed charges against Rep. Lico and party list president Fr. Mar Arenas allegedly about "anomalous" uses of funds, which was duly denied by the respondents in a published statement.

There was also a published report of Mr. Roberto Mascarina charging an Ating Koop party list officer with libel, over some audit reports made. We have not heard the last of this. Hopefully, the charges were withdrawn and the matter settled amicably.

The latest "unverified" report is that Ating Koop president, Fr. Mar Arenas had resigned his position.

As to the replacement of Rep. Lico, I checked the website of the House of Representatives. Rep. Lico is still listed as a member of Congress. But there is also the possibility that the records in the website is still for updating, given that Congress is on recess as of the time of this writing.

The published reports that came out in Manila Bulletin, December 19, 2011 and in Tempo, talked of the alleged non-compliance by Rep. Lico of the term-sharing arrangements reportedly made earlier.

Hopefully Ating Koop shall have resolved its issues by the advent of 2012. (END)

FARMERS' COOPERATIVES ALLOWED TO IMPORT 5-MILLION SACKS OF RICE IN 2012, BUT ARE THEY FINANCIALLY CAPABLE AND NOT BEING USED BY TRADERS?

2011-12-30T01:00:00.000-08:00

It's in the news! The National Food Authority (NFA) is reported to be bidding out the importation of some 500,000 tons of rice next year.

According to the report, half of this volume will be imported/bought by traders. The other half is by farmers' groups. I take that to mean as farmers' cooperatives, as in the case in the past.

If a ton (metric) of rice consists of 20 sacks, weighing 50 kilograms each (one metric ton equals 1,000 kilograms), half of the importation target means some 5 million bags of rice. This will be the share to bought by farmers' groups/cooperatives.

Let's assume for argument sake that the profit margin would be up to Php50 per sack. That would be a whopping P250-million profit. On the other hand, if the cost of importation would be equivalent to some Php800 per sack, the farmers' share would entail some Php 4 billion.

The figures are dependent on the actual market prices of rice at the time of importation. So, these are just rough estimates, for illustration purposes only.

During the past administration, there were published reports of allegations that the farmers' cooperatives were allegedly used as "dummies" by traders. Moreover, that the said cooperatives were paid a minimal fee for using them as fronts for the importation. Until now, these remains as such - allegations.

The names of the alleged farmers cooperatives that were used, were published in the said reports. I checked some of these names in the registry of cooperatives of the Cooperative Development Authority.

They were registered alright. Except that almost all of them have very small assets, and even smaller paid-up capital as to have the semblance of financial capability to undertake/participate in the rice importation.

Under the new administration, there appears to be no clear showing that the reportedly unscrupulous use of farmers' cooperatives by traders had been discontinued.

It is thus, incumbent upon the National Food Authority to dispel this continuing suspicion of corruption in rice importations, especially so that this allegedly involve cooperatives. Or less, it might be misconstrued that we are straying from the "Matuwid na Daan". So there. (END).

PREPARING/UPDATING YOUR COOPERATIVE'S CALENDAR OF YEAR-ROUND ACTIVITIES AND COMPLIANCE DEADLINES

2011-12-27T01:00:00.000-08:00

The coming year-end is also the end of the calendar year of almost all cooperatives. Before we are all pre-occupied with the coming Christmas and New Year holidays, let's make time to update our year-round calendar of activities, as well as our compliance deadlines.

2012 Budget and Developmental Plan:

By this time, the budgets would have been discussed, agreed upon and approved by the Board of Directors. Basically, this is tied up with the business plans of the cooperative for the coming year.

The budget proposal and developmental plan is logically the output of a year-end (or last quarter) review of operations; and conduct of some kind of a planning session.

For cooperatives, who hold their traditional Christmas Special General Assembly, this is the time when the 2012 budget and developmental plans are submitted for the approval of the membership.

The candidates for the various officer positions of the cooperative would have been pre-qualified by this time by the cooperative's Election Committee. Those who passed muster will then be officially introduced during this Special Christmas Assembly.

For others, these budget and development plans are submitted during the annual General Assembly conducted within the first 90 days after the end of the calendar year.

Compliance with conditions of Certificate of Tax Exemption (CTE):

Take this coming Special Christmas Assembly as an occasion to gather the Tax Information Numbers (TINs) of your members. Take note also of the deadline for compliance with other conditions of the CTE. When gathering the TINs, measures should be undertaken to assure that the TINs are genuine.

Your cooperative will be liable to the Bureau of Internal Revenue. Why not make your members submit a certified true copy of their TIN cards, with the copy duly signed by the members? Due diligence is necessary. They can submit these when they get their Christmas Assembly gifts or allowance.

Another compliance deadline worth noting is the submission to the Cooperative Development Authority of the documentary requirements for your cooperative's branches, whether new or existing. If I recall it right, the deadline is sometime on the first or second week of February 2012. But check the appropriate CDA memo circular to be sure.

Calendar of Cooperative's Year-round Activities:

It is best to ask your cooperative manager to make, or update and submit to the members of the Board of Directors the calendar of activities for the whole year of 2012. Include the reproduction of all CDA memorandum circulars for 2011 and furnish all the in-coming/new officers to be elected/appointed in 2012. There are some 21 such CDA circulars issued so far in 2011.

These are just some of those you need to include. So there. (END).

NATIONAL COOPERATIVE MOVEMENT MUTUAL FUND OF THE PHILIPPINES, ADJUDGED ONE OF BEST BALANCED MUTUAL FUNDS IN 2011; WITH 1.99% YEAR-TO-DATE RETURN

2011-12-25T01:08:00.000-08:00

Good news to buyers of shares of the National Cooperative Mutual Fund of the Philippines (NCMFP)!

NCMFP was cited as one of the top 3 balanced mutual funds in the country for 2011. It is joined by Optima Balanced fund, Inc. and First Metro Save and Learn Balanced Fund Inc..

This was reported in the column ("Personal Finance," BusinessMirror, Dec. 20, 2011), of Christopher Lim, a certified financial consultant among other things.

He said that Optima Balanced Fund, Inc. had a year-to-date return of 5.16%; First Metro Save, with 3.25% year-to-date return; and trailed by NCMFP with 1.99% year-to-date return, as of December 7, 2011.

Lim defined a mutual fund, as a type of financial instrument that pools the money of various investors to purchase equities, bonds and other financial instruments.

A mutual fund is professionally managed by a fund manager. Most of the time, mutual funds are categorized as equity fund; bond fund; and balanced fund, Lim wrote.

"A for a balanced mutual fund (like NCMFP), as the term implies, it is composed of a combination of stocks and bonds instruments. To be precise, approximately about 50% stocks and 50% bonds, " he further informed.

Lim added that the returns on 2011 are "a bit unexciting and quite flat. 2010 was a totally different story, as most mutual funds have double digit-returns in the high 20s and 40s."

Moreover, he disclosed that his mutual fund picks for 2012 are:

Top 4 equity mutual funds - Philequity PSE Indes Fund Inc.; First Metro Save and Learn Equity Fund Inc.; Philequity Fund Inc.; and Philam Strategic Growth Fund.

Top 3 balanced mutual funds - GSIS Mutual Fund Inc.; Philam fund Inc.; and Sun Life Prosperity Balanced Fund Inc.

Top three bond mutual funds - Philequity Peso Bond Fund Inc.; Cocolife Fixed Income Fund Inc.; and First Metro Save and Learn Fixed Income Fund Inc.

So, happy investing in mutual funds, which is also an investment outlet for COOPERATIVES! (END).

WHY WOULD COOPERATIVES INVEST IN MUTUAL FUNDS?: Last Part (FAST FACTS ON THE NATIONAL COOPERATIVE MUTUAL FUND OF THE PHILIPPINES

2011-12-23T01:00:00.000-08:00

(Following is the final portion of the two-part series that serve to guide COOPERATIVES in investing in mutual funds, with question-and-answer on the National Cooperative Mutual Fund of the Philippines (NCMFP).

Q: What type of risks are involved in investing in NCMFP?

A:   Being moderate to high in risks, NCMFP is exposed to financial risk through its financial assets and financial liabilities. The most important components of this financial risk are credit risk, liquidity risk, and market risk.

These risks arise from open positions in interest rate which are exposed to general and specific market movements.

The risks that the Fund primarily faces due to the nature of its investments are interest rate risk and liquidity risk die to the open-end nature of the fund.

Q:   What is the minimum initial investment in NCMFP?

A. NCMFP shares will be offered to the public based on its NAVPS or Net Asset Value Per Share, with a minimum initial investment of Ph 100,000.

Q:   What is the minimum additional investment in NCMFP?

A: The minimum additional investment is Ph 10,000.

Q:   What is the minimum holding period?

A: NCMFP charges redemption fees not more than 1% should the investor redeem before the stipulated minimum holding period of six (6) months.

Q: What are the entry fees for the different amount of investments?

A:

Investment Amount (in Php)    Sales Load VAT (12%)

100,000 to 499,999                    3.0%             0.360%
500,000 to 999,999    2.0%             0.240%
1,000,000 to 1,999,999    1.5% 0.180%
2,000,000 & above 1.0%    0.120%

Q:   When was NCMFP incorporated?

A:   The company was incorporated on March 25, 2009.

Q:    Where is NCMFP engaged in?

A.   NCMFP is engaged primarily in the business of investing, reinvesting and trading in securities and the sale of its shares.

Q:   Philam Asset being the fund manager, how much is it entitled to get each day?

A:   As investment/fund manager and principal distributor, Philam Asset is entitled to 0.005% of the Average Net Value of the Fund assets, computed on a daily basis or not more than 1.8% of the Average Net Asset Value of the Fund's assets per year.

Q:   What does NAVPS stand for?

A:   NAVPS stand for Net Asset Value Per Share and is computed as the Total Assets less Total Liabilities divided by the number of outstanding shares.

       It is also important to take note that the Net Asset Value of the Fund will fluctuate with changes in the market value of the Fund's investments. Such changes in market value may occur due to material changes in the fund and general economic conditions or interest rate policy changes.

Q:   What are the objectives of NCMFP?

A:   NCMFP aims to provide investors a steady stream of income payments through investments in a broadly diversified portfolio of fixed income securities, while preserving capital and maintaining long-term capital appreciation through investments in equity securities.

Q:   What are the documentation requirements for NCMFP investors?

A:   The documentation requirements include:

+ Client Information Sheet (CIS) for cooperative accounts.
- Client Information Sheet (CIS).
- Duly Certified Copy of Articles of Cooperation.
- Duly Certified Copy of By-Laws.
- Board Resolution or Secretary's Certificate to Invest in the Fund.
- Board Resolution or Secretary's Certificate of the authorized signatories.
- Latest Cooperative Annual Performance Report (CAPR).
- Photo copy of IDs of each authorized signatory.
-Certificate of Registration from Cooperative Development Authority.

Q: How can we redeem our investments?

A:   The investors can file their redemption request forms in any Philam Asset office. Redemption from the NCMFP requires filling out, disclosing and presenting the following information and documents:

         -Transaction Form (Redemption Form)
         -Reason for Redemption (Monitoring Form)
         -One (1) Valid ID (for walk-in redemption)

PAMI's address: 12/F Ayala Life-FGU Center, Ayala Avenue, Makati City 1226 Philippines.

Philam Asset Head Office tel. no. (+632) 555-4702
E-mail: pami.marketing@aia.com

Philam Asset Call Center: (+632) 817-PAMI (7264)
pami.callcenter@aia.com      (END)

It's time for the people to Occupy co-operatives

2011-12-22T20:23:00.000-08:00

It's time for the people to Occupy co-operatives

Luzon-based rural banks first to get OK to sell microinsurance | BusinessWorld Online Edition

2011-12-22T18:32:00.000-08:00

Luzon-based rural banks first to get OK to sell microinsurance | BusinessWorld Online Edition

Davao Region cooperatives cited for output | BusinessWorld Online Edition

2011-12-22T01:50:00.000-08:00

Davao Region cooperatives cited for output | BusinessWorld Online Edition

TYPHOON "SENDONG" AND THE OXYMORON THAT IS "RESPONSIBLE MINING"

2011-12-20T01:00:00.000-08:00

Over the weekend, no one could escape being gripped with horror over seeing on television the many people that were killed in the wake of the tropical storm "SENDONG," in Norther Mindanao cities, particulary in Cagayan de Oro City and Iligan City.

The Philippine Cooperative Blog (philippinecooperative.blogspot.com) had uploaded gory pictures of piles of dead bodies. It is just indiscribable. Many organizations have come up with efforts to channel donations to those affected by the destructive typhoon.

And now that only the loss of lives and property destruction were left behind by the force of nature, we hear of voices pointing to several factors that contributed to this tragedy.

"It is unusual for Mindanao - a month's worth of rainfall poured in only in a few hours," according to Gwendolyn Pang, secretary general of the Philippine National Red Cross, who was quoted as saying: "People were already asleep; the storm hit pineapply plantations that don't absort water; it was high tide and waterways were heavily silted. It was unprecedented and overwhelming."

Mining, together with the rapid acceleration of climate change and the prevalence of illegal logging activities were among those pointed out as contributing to the disaster.

"We can really see how vulnerable we are. When you tamper with the watersheds and the forests, we become vulnerable," said Sec. Neric Acosta, presidential adviser for environmental protection.

He added that mining activities near the watershed areas of Lanao del Norte and Bukidnon have contributed to the siltation of the major rivers of Mindanao.

A history of unfortunate events

In the face of the continuously worsening effects of climate change, the last thing that the Filipino people could endure is the loss of its most precious resource that should be safeguarded for the future generations - rich environment and biodiversity.

Mining, as proven historically, has played a huge role in helping build some of the world's biggest economies. This includes those of Brazil, Australia, the United Kingdom, South Africa, and Mongolia.

But unlike the Philippines, these nations are non-archipelagic and are part of vast continents that are considered not as fragile as island ecosystems.

Regrettably, mining operations have had direct impact on some of the Philippines' worst environmental tragedies. These resulted to the loss and destruction of forests and wildlife.

"In Palawan alone, there were two major accidents this year where coral reefs were destroyed; hectares of farmlands laid to waste; tons of nickel spilled into the sea," says ABS-CBN Foundation Inc. managing director Regina Lopez
.

Spearheading the "Save Palawan Movement", Ms. Lopez added that: "Up to now, there are literally hundreds of abandoned mined sites that remain unrehabilitated and the people around them continue to suffer."

The list of environmental degradation cases is as long as the list of pro and anti-mining issues. But pro-environment activists are one in saying, that whether large-scale or small-scale, there is no such thing as responsible mining in fragile island ecosystems.

The mere fact that mining operations are taking place in the Philippines - considered among the seat of the world's richest biodiversity that possesses an intricate web of ecological systems, is in itself irresponsible, they claim.

But given the Philippine government's limitations in accounting for verifiable economic benefits versus the environmental, social, cultural and economic costs of mining, our leaders should give a serious thought to imposing a mining moratorium.

Better late, or never....than sorry. (END)

WHY WOULD COOPERATIVES INVEST IN MUTUAL FUNDS: Part 1

2011-12-18T01:00:00.000-08:00

(To guide COOPERATIVES in their investment options, we are serializing herewith in two (2) parts the information contained in the website (www.philamfunds.com.ph) of the Philam Assets Management, Inc. (PAMI):

"Why Invest in Mutual Funds?"

and

"Fastfacts on the National Cooperative Mutual Fund of the Philippines, one of the mutual funds managed by PAMI."

What is a mutual fund?

A mutual fund is an investment company that pools the savings of individuals and institutional investors who share a common financial goal.

These investors buy shares of the mutual fund and become shareholders of the fund they choose.

The mutual fund has specific investment objectives and strategies. Investors buy and sell shares of the fund based on the prevailing Net Asset Value Per Share (NAVPS).

ADVANTAGES:

PROFESSIONAL MANAGEMENT. Investors avail themselves of the active professional fund management from full time investment experts. They are backed by research teams focusing on seizing market opportunities.

LIQUIDITY:

Mutual fund shares are redeemable. The fund readily buys back shares to be redeemed based on the current NAVPS. Moreover, fund portfolio consists of liquid assets mostly marketable securities.

TAX FREE:

Earnings from mutual funds are excluded from items classified as taxable income. This is a provision of the Comprehensive Tax Reform Package (CTRP) of 1998.

DIVERSIFICATION:

The pooled funds enable it to spread it in various securities resulting to greater propensity to earn more and spreads the risks across the different securities.

SAFETY:

The industry is highly regulated by the Securities and Exchange Commission. Moreover, securities are kept with a custodian bank separate from the management company. The shareholder records are with the transfer agent. An external auditor oversees financial issues.

QUESTIONS AND ANSWERS ON THE NATIONAL COOPERATIVE MUTUAL FUND OF THE PHILIPPINES (NCMFP).

Q: What is the target market of NCMFP?

A: One of the mutual funds managed by Philam Assets Management Inc. (PAMI), NCMFP was formed for the different cooperatives nationwide.

      It aims to give an opportunity for cooperatives to invest their hard-earned money in mutual funds. NCMFP is limited to cooperatives only and is not available to individual accounts.

Q: NCMFP is what type of mutual fund?

A:    NCMFP is a balanced fund, meaning the fund is invested half in equities and the other half in fixed-income securities. However, it is at the Fund Manager's discretion to invest a substantial amount of NCMFP's assets in equities up to the maximum allowed under prevailing Philippine laws or up to 100% in fixed-income securities (i.e., liquid or semi-liquid assets) subject to existing liquidity requirements, as may be allowed by law.

Q. What type of investor is NCMFP for?

A. Investors who have moderate to aggressive risk profiles and who prefer a balanced portfolio of securities.

Q.   What are basic fund components of NCMFP? What are fixed-income securities?

A.   Under normal circumstances, NCMPF will invest approximately 50% of its assets in equities and 50% in fixed income securities. Meaning, 50% of NCMFP is invested in equities of companies listed in the primary and secondary boards of the Philippine Stock Exchange.

Likewise, the other 50% is invested in domestic fixed-income instruments, including but not limited to, treasury bills, Bangko Sentral ng Pilipinas Certificates of Indebtedness; other government securities or bonds and such other evidences of obligations issued by the BSP or guaranteed by the Philippine government.

However, it is at the Fund Manager's discretion to invest a substantial amount of NCMFP assets in equities up to the maximum allowed under prevailing Philippine laws or up to 100% in fixed income securities ( i.e., liquid or semi-liquid assets), subject to any existing liquidity requirements as may be required by law. NCMFP also needs to invest 10% in liquid securities.

(To be continued....)

MUTUAL BENEFIT ASSOCIATIONS, INSURANCE COMPANIES ARE REQUIRED TO SUBMIT THEIR "REVISED MICROINSURANCE PRODUCTS" TO THE INSURANCE COMMISSION NOT LATER THAN DEC. 31, 2011 FOR APPROVAL

2011-12-15T01:10:00.000-08:00

(We are reprinting the following Circular Letter No. 39-2011, dated November 24, 2011, which we hope is self-explanatory. This may be downloaded at www.insurance.gov.ph. There is urgency in this Circular Letter, and the Dec. 31, 2011 submission deadline should be noted.)
______________________________________________

Circular Letter No. 39-2011
Date                      : November 24, 2011

CIRCULAR LETTER

TO          :     ALL INSURANCE COMPANIES AND
     MUTUAL BENEFIT ASSOCIATIONS

SUBJECT: RE-APPROVAL OF MICROINSURANCE
   PRODUCTS

In view of the of the current regulations of the provisions of microinsurance products and services under Insurance Memorandum Circular (IMC) No. 1-2010, the following guidelines are hereby promulgated your guidance and compliance:

   1. All insurance companies and mutual benefit associations concerned are enjoined to:

   a. amend their insurance products previously approved as microinsurance products under IMC No. 9-2006 by incorporating therein the requirements prescribed under IMC No. 1-2010; and

   b. submit the revised microinsurance products not later than December 31, 2011 to this Commission for its consideration and approval.

   2. Failure of the concerned companies and mutual benefit associations to comply with the foregoing shall result in the declassification of their microinsurance products approved under IMC No. 9-2006.

          However, for purposes of reporting and complying with Circular Letter No. 5-2011 - Performance Standards for Microinsurance, the previously approved microinsurance products under IMC No. 9-2006 which are issued on or before December 31, 2011 shall continue to be reported and treated as microinsurance products until maturity or termination.

           This Circular shall effect immediately.

(SIGNED)

EMMANUEL F. DOOC
Insurance Commissioner

_____________________________________________

"NATIONAL COOPERATIVE MUTUAL FUND OF THE PHILIPPINES HAS GROWN 38.17% SINCE IT WAS CREATED IN 2009; AN AVERAGE OF 15.24% PER YEAR..."

2011-12-12T01:00:00.000-08:00

I asked a financial advisor of the Philam Assets Management, Inc. (PAMI), Mr. Ephraim L. De Guzman on the status of the National Cooperative Mutual Fund of the Philippines (NCMFP).

He said that as of Oct. 28, 2011, the NCMFP has grown by 38.17% since it was incorporated on March 25, 2009. It was formed for the different cooperatives nationwide.

NCMFP, which is managed by PAMI, aims to give opportunity for cooperatives to invest their hard-earned money in mutual funds. Only cooperatives may invest in NCMFP and is not available to individual accounts, or individual members of cooperatives.

For the fast facts/frequently-asked questions about NCMFP, please visit http://www.philamfunds.com.ph/faqs.php

Mr. De Guzman added that NCMFP grew at an average of 15.24% per year. "This is an excellent (investment) option for cooperatives considering that Time Deposits now earn a maximum of 3.38% in banks, for deposits of more than P10 million," he said.

What is more, earnings from mutual funds are exempted from the 20% withholding taxes which are charged on interest incomes of Time Deposits, Mr. De Guzman added.

I was just thinking that Time Deposits offered by cooperatives to their members are about the same rates as those offered by banks. Only that the interest rates given by cooperatives are not subject to the 20% final withholding tax on interests, I think.

Assuming that the above data are true, ( there are ways of verifying these, I mean yields, etc.), could there be a way by which cooperative members could also "invest" in NCMFP, even if indirectly since only cooperatives may invest in NCMFP? And in the process they could also enjoy the competitive (even if variable), higher rates of yield from the mutual fund.

For example, the cooperative could offer a special product. Let's say a Time Deposit with a term of 6-months, to align with the term of the NCMFP, where the investment could be withdrawn after 6 months. The pooled funds from this special Time Deposit could then be invested in shares of NCMFP, in the name of the cooperative.

The interest in these Special Time Deposits could be pegged with the yields of the NCMPF shares bought by the cooperative, which is expectedly higher, but variable. The cooperative could charge a certain percentage share from the NCMFP yield, as management or investment fee, before declaring the rate of income on the Special Time Deposits.

For full disclosure purposes, this Special Time Deposit could be called as Mutual Fund Participation Time Deposit, and can be carried in the cooperative's books, as such, Time Deposits liabilities.

Sometimes, the problem of the cooperative lies not so much on attracting deposits from members, but more on how to make these deposits earn even at break-even costs to the cooperative. And if cooperatives would only put their members' money in Time Deposits in banks, the yields are not as competitive.

When loaned out to members, there is a credit risk from loan delinquency to consider.

The cooperative ends up shouldering and subsidizing the interest costs on the members' deposits, which is not good for its bottomline.

This scheme could make it more attractive for cooperatives to invest in the share of the NCMFP. Vice versa, this way, the NCMFP could make their marketing of NCMFP shares more attractive to cooperatives.

What about the risks involved in mutual funds? PAMI, in its website says:

"..Being moderate to high in risks, NCMFP is exposed to financial risk through its financial assets and financial liabilities. The most important components of this financial risk are credit risk, liquidity risk and market risk."

Risks in investments are also present in such products as Time Deposits. The bank can also close, or run into some problems. Normal risks that a depositor/investor takes. So, there. (END).

(Note: Mr. Ephraim L. De Guzman may be reached at tel. nos. (02) 423-6044; (02) 912-2146; cell nos. 09174734149; 09491212774 for consultations. He says he provides briefings for cooperatives' board of directors/officers on mutual fund investments. He is not in any way connected with Cooperatives Philippines.)

ILL-MANAGED CREDIT COOPERATIVES MAY SOON BE RECOMMENDED FOR CORRECTIVE ACTION/CLOSURE BY THEIR FEDERATIONS, AS THE COOPERATIVE DEVELOPMENT AUTHORITY DELEGATES ITS SUPERVISION AND EXAMINATION FUNCTIONS

2011-12-08T01:00:00.000-08:00

Is your cooperative 'active' and 'member-in-good-standing' with your local federation? Said another way, is your cooperative properly remitting your membership dues to said federation in your locality?

The reason I asked is that the Cooperative Development Authority (CDA) has deputized such federations to review the management practices and financial status of all cooperatives that take deposits and extend loans to their members.

These cooperatives are the financial service cooperatives; and cooperatives with savings and credit services. The latter would include credit cooperatives, and multipurpose cooperatives with deposit-taking and lending operations, etc.

Not only that, once deputized/accredited by CDA, these federations are obligated to submit reports to CDA on a regular basis, which could be the basis for "corrective action", and failing that, perhaps even ultimate closure of your cooperative.

In so many words, this is what is contained in the CDA Memorandum Circular No. 2011-23. (Pls. visit www.cda.gov.ph for this).

Many primary cooperatives do not actively participate in the affairs of their federation. They are reluctant to pay their dues. If ever, they remit only partial amounts. The common reason is that they do not seem to get services from their federations,commensurate with their payments.

But this mindset will now have to change.

As the year ends, you should ready your payment of dues. But to which federation? There maybe two, three or more in your area/region.

The CDA Circular lists down the qualification of the federations that they may qualify or accredit for this purpose. So, even now, I suggest that you gather key data on the federations that your cooperative is a member of, to determine the likelihood of their being officially deputized. (Need I say that this one most likely to be it, is where you will update your dues; build friendly relations with, etc.?)

"Section 3. Qualifications of a Deputized Federation:

The following are the qualifications of a Deputized Federation to undertake supervision and examination functions:

1.     Registered and operating as a Federation with direct access to the financial information and records of its member-cooperatives;

2.     Net Worth of at least Ten (P10) million;

3.      Active membership base of at least ten(10) primary cooperatives undertaking savings and credit operations that are subject to supervision and examination;

4.       Positive net worth for the last 2 years at the time of the application as shown by duly audited financial statements.

5.       Institutionalized Governance and Management Practices;

6.      Have at least three (3) qualified examiners;

7.      No adverse findings or deregatory record from any government regulatory agency or entity and creditors (CDA, Bangko Sentral ng Pilipinas, Government Financial Institutions, Local Government Unit);

8.      Not convicted of any legal, civil or administrative case involving moral turpitude with finality in any court of law or regulatory agency; and

9.     Willingness to undergo training or examination and supervision to be conducted by the Authority (CDA);

I am saying that you, the primary cooperative itself, review all the federations of which your cooperative is a member, based on the above criteria. Because Section 11 of the CDA Memo. Cir. allows you to choose, i.e.:

"...Primary cooperatives with multiple affiliations may choose the deputized federation who will conduct the supervision and examination....Cooperatives with no affiliation shall be examined/supervised directly by the Authority (CDA)..."

By the way, what are the "supervision" and "examination" tasks that are to be delegated by CDA to these federations?

Section 1 of the Circular defines "SUPERVISION"- refers to the review and assessment of the entire cooperative operations including the quality of the cooperative's risk management process, cooperative governance, internal risk management process, cooperative governance, internal controls, accountabilities and responsibilities, and adherence to regulatory and prudential standards.

On the other hand, "EXAMINATION" -refers to the verification, review and inspection of the cooperative's books and records, business affairs, administration, governance and management and financial condition.

And for what purpose will the "supervision" and "examination" reports be used? One clue is contained in Sec. 8. Monitoring of Reports, to wit:

"..The deputized federation shall submit a quarterly report on the delegated function as supervisor and examiner such as the Status of Operation/Activities on Examination and Status on the Compliance on the Recommended Corrective Measures and Actions taken by the supervised/examined cooperative..."

I take this to mean that based on the reports made by the deputized federation, either the said federation shall recommend to CDA and/or CDA will prescribe the "corrective measures" to be imposed on the affected primary cooperative.

And of course, it can only be logically inferred (although not directly expressed in the CDA Circular) that cooperatives who failed to comply with the "corrective measures" may ultimately face closure, or its equivalent penalty.

The questions that come now are these. What happens to the mandatory Annual Performance Reports; Social Audit Report; and External Audit Report, that all cooperatives are required to submit?

Does the CDA not put credence on these reports, as to require the "supervision" and "examination" of these cooperatives, by the deputized federations?

But one thing is sure. Cooperatives have to shape up, or as they say, "ship out". So there. (END).

DESPITE THE DEC. 31, 2011 DEADLINE TO DISCONTINUE THE PRACTICE, MANY COOPERATIVES STILL OPERATE IN-HOUSE, SELF-INSURANCE SCHEMES. ARE THEY COURTING SANCTION FROM THE COOPERATIVE DEVELOPMENT AUTHORITY, INSURANCE COMMISSION?

2011-12-04T01:00:00.000-08:00

I was recently surfing the websites of a number of cooperatives. And what do you know? Still listed in their menu of products/services are self-insurance schemes and insurance-like services. This had been disallowed by the Joint IC-CDA-SEC Memo Cir. 01-2010C, which provides:

     "x x x 2. Entities including cooperatives and non-government organizations currently engaged in unauthorized insurance or insurance-like activities (hereinafter referred to as informal insurance providers) shall terminate their informal insurance or insurance-like activities.... x x x "

For example, I am reproducing below some sample entries in the websites, which apparently fall under the said prohibitions:

     "Mutual Benefits..."

   1. Damayan Plan - a plan intended to provide benefits to member-beneficiaries. Deductions from our (members') year-end benefits, such as interest on Share Capital, Prime Deposit and Patronage Refund are made as premium to this plan.

            Benefits may be as high as P32,000 commensurate with the member's length of membership with the cooperative...

   (Note: While Damayan was retained/allowed by, but this one apparently still falls under the definition of an insurance product. Pls. see definition in Joint IC-CDA-SEC Memo Cir. 01-2010).

       2.   Hospital Plan - a plan intended to defray part of the cost of member's hospitalization. It covers hospitalization expenses up to a maximum of amount of P5,000 per year.

          3.   Loan Redemption Plan - an insurance plan which covers the outstanding balance of the loan should the member die before the loan is fully paid. It ensures the outstanding balance up to a maximum amount of P250,000.

4. Auto Accident Insurance Plan - This plan covers auto accident expenses up to a maximum amount of P5,000 per year.

         If these insurances are not in-house, it should have been indicated, as being sourced from a Mutual Benefit Association, Inc., or from a commercial insurance provider, authorized by the Insurance Commission. But it was not.

   Anyway, another surefire indication that it was really a self-insurance scheme is when the cooperative carries in its books/financial statements, such fund balances for these insurance activities, as liabilities of the cooperative.

       Does your cooperative continue to operate your old, in-house, self-insurance scheme as described above?

   It may be worthwhile to be reminded of the following provisions of Joint IC-CDA-SEC Memo Cir. 02-2010:

       " x x x 4. Failure to formalize ... shall, upon findings of the Insurance Commission, warrant the referral to the Securities and Exchange Commission (in case of NGOs) or CDA (in case of cooperatives), for possible commencement of revocation proceedings against the primary franchise of the erring entities...xxx "

         Meanwhile, the deadline for the termination of informal insurance activities and other insurance-like business of the cooperatives was extended until Dec. 31, 2011.ec. 31, 2011. This was provided under Joint IC-CDA-SEC Memo Cir. 01-2011.

So, let's be guided accordingly. (END).

ATINGKOOP PARTY LIST REP. ISIDRO Q. LICO SAYS CONVERSION OF ELECTRIC COOPERATIVES TO CDA-REGISTERED COOPERATIVES COULD REDUCE COST OF ELECTRICITY TO MEMBER-OWNERS

2011-12-02T01:00:00.000-08:00

Registration of electric cooperatives with the Cooperative
Development Authority (CDA), like any other cooperative, could result in added benefits to their members, including reduced cost of electricity, according to AtingKoop Party List Rep. Isidro Q. Lico.

There are more than 100 electric cooperatives nationwide who have yet to register themselves with CDA and avail themselves of benefits given to regular cooperatives.

Among other things, electric cooperatives when registered with CDA will enjoy an exemption from the payment of the 12% value added tax, which would result in the reduction of the cost of electricity to member-consumers, according to Rep. Lico.

"Conversion of electric cooperative into stock cooperatives would also give recognition to electricity consumers, as co-owner of the cooperative," Rep. Lico pointed out.

"In the present set-up, member-consumers groups are not considered as co-owners because there are apparently no records off ownership and how such consumers are contributing," he added.

Rep. Lico also said that registering electric cooperatives with CDA would also strengthen these cooperatives as the consumer/co-owners, or shareholders would seriously help protect their electric cooperatives.

He also belied criticisms that once an electric cooperative registers with CDA, it will lose support from the National Electrification Administration (NEA).

"NEA under the Electric Power Industry Reform Act is mandated to support electric cooperatives, even it they become stock cooperatives, registered with the CDA, Rep. Lico concluded. (END)

Based on the Report by Freddie Lazaro

BIR DOES IT AGAIN; DEFERS UNTIL 2013 ITS NEW INCOME TAX PAYMENT RULE MANDATING THE DISCLOSURE OF BANK DEPOSITS, AS AMONG SOURCES OF TAXPAYERS' INCOME

2011-11-29T20:28:00.000-08:00

Banner headline of the Nov. 30, 2011 issue of Manila Bulletin "BIR defers tax memo; directive orders taxpayers to bare bank deposits."

In short, Bureau of Internal Revenue (BIR), under its Rev. Memo Cir. No. 40-2011, is requiring taxpayers to name in the ITR form to be filed on April 15, 2012, where their bank deposits were and to list down the interest incomes derived from them.

Apparently, to diffuse somehow the pressure being exerted by lawmakers, who opposed this and who claimed the same is a "violation of bank secrecy laws," BIR recently issued Rev. Memo. Cir. No. 57-2011.

According to the Mla. Bulletin news item, the new BIR memo "made the requirement mandatory only in 2013, when the taxpayers file their 2012 Income Tax Returns."

Moreover, "those filing their 2011 ITRs, the requirement will be made optional on the part of the taxpayers...", the BIR said.

COOPERATIVES may very well remember a similar experience with BIR. Early on, COOPERATIVES were asked to re-register with the Cooperative Development Authority, following the implementation of R.A. 9520.

If I recollect correctly, among the requirements asked was the submission by the cooperatives of their list of members, including the members' individual Tax Information Numbers (TIN). The same was required when cooperatives file with BIR their application for their Certificate of Tax Exemption (CTE).

Similar to the ITR requirement cited above, this move was also met with opposition, spearheaded also by lawmakers behind R.A. 9520, as well as leaders of the cooperative movement.

And what did the BIR do then? They deferred requiring the submission of the cooperative members' TINs. The cooperatives were apparently happy with this. But not for long.

If your cooperative has received its CTE, you would notice that such requirement, for the cooperative to submit to BIR its members' TINs, was among the conditions to be complied with.
A deadline for this is contained in the CTE conditions. Clever, isn't it?

But we cannot fault the BIR for its apparent zealousness to collect taxes. The government indeed needs all the support it can get. Even from small members of the cooperatives. What is presumed among members of the cooperatives is that they are gainfully employed. That is one of the requisites of membership. And if employed, the cooperative member no matter how lowly, earns income.

The BIR only wants to make sure that taxes on such incomes are paid, if within taxable levels. Moreover, banks automatically deduct a final tax of 20% of the interest incomes in depositors savings, and other deposit accounts. Maybe BIR is also making sure that these big banks properly and accurately remits to BIR such taxes withheld.

So, I submit that we should support the BIR on this. That is very well within the spirit of the cooperative movement. Do you agree? So there. (END).

SHOULD WE BE DECLARING/PAYING DIVIDENDS, OR INTEREST ON SHARE CAPITAL OF COOPERATIVE MEMBERS, WHICH ARE BELOW THE REQUIRED MINIMUM? SHOULD WE HOLD THIS BENEFIT WHEN THE MEMBER IS DELINQUENT IN HIS LOANS?

2011-11-27T01:00:00.000-08:00

As a member of the Board of Directors of my cooperative, I was scheduled to attend a committee meeting to discuss the preparation of the cooperative's budget for 2012.

The budget assumptions on the possible expenditures and revenue activities of the cooperative will be taken up and formulated, based on which, a working budget is prepared for submission to and approval of the Board of Directors.

And once approved, the Board of Directors will present this 2012 budget to the members, as a component of the cooperative's developmental plans, during the special general assembly sometime this December, which at the same time serves as the cooperative's Christmas party and celebration.

The two issues, contained in the headlines of this blog, are among the most contentious ones that are brewing in my mind.

Indeed, why would a member 'deserve' to receive interest on share capital when in the first place he has not completely paid for the minimum amount, as may be required by a cooperative.

This even means that he is not yet a 'full', bona fide member. And hence, he may not be accorded the full privileges of a member, including the privilege to borrow, if not to participate in elections and parliamentary activities of the cooperative?

In addition to completing the payment of minimum share capital, R.A. 9520A, and the Articles of Cooperation and By-laws of cooperatives even require that a member shall not be delinquent in the payment of his subscribed capital. In our cooperative, the minimum paid share capital is P5,000 and the subscribed capital is worth P10,000 per member.

Next, I strongly believe that when a member ceases to be in good standing, he should not receive interest in his share capital. For example, a member borrowed an amount, usually equivalent to at most four (times) his share capital. He becomes delinquent and does not pay. Imagine the cooperative investing, say P20,000 in loan versus the member's share capital of P5,000.

Say that the cooperative declares a 10% interest on share capital at the end of the year, that would be only P500. Should the cooperative still pay out to this member P500 when he is not paying back his loan? Even if his P5,000 capital is used to offset his loan, the cooperative still stand to lose P15,000, more or less.

Another thing, say a member has a P5,000 share capital and he does not borrow at all. He is just there to earn 10% yearly on his capital share, like a saver, a passive-income earner. This should not be so.

A member is obligated to patronize the business of the cooperative. That is one of his duties. And if he does not do so, and he does not contribute to the income of the cooperative, it is just fair that he does not get a share from such income.

The ideal financial benefit that a good member should receive by the end of the year is the patronage refund. This means that he is not only qualified, but he had actually patronized the products and services of the cooperative. And on top of this patronage refund, he deserves to be given interest on his share capital.

That's it. That will be my position during the budget committee meeting. The bases of my above position, are as follow:

1.   The General Assembly is composed ONLY of members in good standing.

2.    Among the obligations of membership is to patronize all the businesses of the cooperative; pay the minimum share capital; and not to be delinquent in the payment of subscribed capital.

3.   Among the rights and privileges of a member is to receive interest on share capital and patronage refund, if there is any.

4.   Among the powers of the General Assembly is to exercise all the rights and privileges of membership.

Therefore, if you are not a member of good standing (for any reason, for failing duties of membership, etc.), you are not part of the General Assembly. As such, you cannot exercise the rights and privileges, i.e., to receive interest on share capital; receive patronage refunds.

Based on these, let's stop coddling those who are not members in good standing! So there. (END)

"COOPERATIVE EFFORT TO STRENGTHEN COOPERATIVES," - GOVERNOR AMANDO M. TETANGCO, JR., BANGKO SENTRAL NG PILIPINAS

2011-11-23T04:17:00.000-08:00

(Following is the speech of of Bangko Sentral ng Pilipinas Gov. Amando M. Tetangco, Jr., during the launching of the Strengthening Program for Cooperative Banks and Signing of the Memorandum of Agreement, Nov. 16, 2011)

"Congressman Jose Ping-ay, Chairman, Committee on Cooperatives Development, House of Representatives; Congressman Cresente Paez; PDIC President Valentin Araneta; LBP President Gilda Pico; Members of the Monetary Board; fellow workers in government; distinguished guests; ladies and gentlemen, good morning...

First of all, let me thank you for your presence in the formal launch of the Strengthening Program for Cooperative Banks (SPCB) and the signing of the Memorandum of Agreement among BSP, PDIC and LBP.

A product of long discussions among the BSP, PDIC and LBP, the SPCB was conceived in close consultations with the cooperative banking sector to ensure that the program will achieve its objective of developing a stronger cooperative banking sector.

The cooperative banking sector plays a vital role in the government's effort to have a truly inclusive financial system. Although the cooperative sector comprises but a small fraction of the entire banking system, cooperative banks banks are at the forefront in the provision of the much needed financial services to hundreds of primary and federation of cooperatives and their individual members who usually have limited access to banking services.

It is through these cooperative banks that a great number of those in the countryside have their first interaction with the formal financial system. It should therefore come as no surprise to us that, with the sector's value and contribution in the financial system, it should be the beneficiary of a strengthening program of this nature.

The SPCB was conceptualized to bring about larger and stronger cooperative banks by encouraging mergers, consolidations with or acquisition of cooperative banks by eligible Strategic Third Party Investors (STPIs) under a specific set of guidelines.

The program offers a variety of incentives to participating cooperative banks and their partner STPIs, the reason for which is to help them achieve a healthier financial condition.

These incentives include targeted financial assistance to augment capital, credit facilities to support business expansion, and a package of regulatory relief.

To augment capital, the PDIC and LBP will provide equity infusions in the form of perpetual, non-cumulative preferred shares, convertible to common shares at the end of 10 years.

These equity infusions will neutralize the potential adverse impact of asset write-downs that are essential to clean up the books and ensure that the surviving banks are strong and capable.

An exit mechanism provides for the buy-out of government shares after 10 years. In addition to equity infusions, credit facilities will also be made available by LBP to enable STPIs to further scale up their operations at an accelerated rate.

The BSP on the other hand, will provide a complementary regulatory relief package such as allowing flexibility in the opening, conversion and relocation of bank offices, including head offices, flexibility in ownership limits, more liberal guidelines that would allow staggered booking of required valuation reserves, waiver of penalties as may be appropriate, and the restructuring of existing rediscounting and emergency loans with the BSP.

The grant of regulatory relief is expected to allow the surviving banks to achieve economies of scale and better manage their liabilities.

Further, mergers, consolidations and acquisitions under the SPCB will rationalize the cooperative banking sector and bring about surviving banks that have higher capitalization and stronger management.

Clearly, this is consistent with our objective to strengthen the cooperative banking sector so it can better contribute in promoting balanced and sustainable growth for our nation.

The cooperative sector is also squarely behind this program, with no less than the sector's party list representatives playing an important role in ensuring the success of this program.

Ladies and gentlemen....Indeed, we all look forward to the benefits of this program, first to the cooperative sector and then to larger public that this sector serves...And, as we do, it would serve us well to remember that beyond the documentation involved in mergers, acquisitions or consolidations, and the grant of financial and regulatory relief to participating institutions, the real challenge to us is how to sustain the viability and sound operations of cooperative banks resulting from such mergers, acquisitions or consolidations.

Here, I cannot overemphasize the importance of having committed boards and senior management teams, as well as sound corporate governance practices in these banks.

These will help ensure that the gains we expect from the SPCB are sustained, and that the program's impact would be felt in the entire banking system long after this launch." (END).

YOUR COOPERATIVE MIGHT BE OVERLOOKING THIS OTHER SOURCE OF INCOME: CHARGING YOUR MEMBERS CERTAIN FEES FOR OTHER SERVICES RENDERED

2011-11-20T01:05:00.000-08:00

It is the time of the year. About this time, cooperatives make some pencil pushing, to estimate and project what would be their net surplus by the end of the year, based on current trends. Some do this earlier, during the start of the last quarter.

If your cooperative has not done so, it is also time enough to think of preparing your cooperative's operational budget estimates for 2012. This, along with the developmental plan for next year is usually presented for approval by the general membership in the special Christmas assembly of the cooperative.

For budgeting purposes, let's revisit our current and potential sources of revenues. The expenses are fairly predictable. We can easily review the same and prune it down, if need be.

For multipurpose cooperatives with lending operations, the primary source of income is still interest charges on loans extended.

These loan-related revenues also include loan service fees; and loan penalties and charges. That is, if we can collect the loan repayments and these penalty charges. We cannot recognize these as income, if we have not collected these.

Now, let's look at other fees that the cooperative should be collecting, if it has not done so. This is to augment the loan-related income, especially if the cooperative's level of loan delinquency is high.

For example, review if you could justify an increase in membership fees charged the incoming members. Is the current fee of P200 enough to cover the members' recruitment costs. This includes the cost of training; food/merienda; forms; passbooks; identification cards; cost of ownership/delinquency seminars, etc.

Why not increase it to P300? If your cooperative, like ours, is giving out P100 in incentive for every new member recruited, this increase would be reasonable. Think of the inflation rate and the upward trend of prices.

How about charging those who resign as members? Some call this an exit or resignation fee. If you have not done so, consider charging from P200 to P500. If membership turn-over is high, the fees derived could add up to your income.

One reason for charging this fee is that your cooperative has invested long-term for its members. These members have benefited much from the cooperative. They should share and give back to the cooperative when they leave.

In some cooperatives, the officers (elected and appointed), including the management staff have committed to recruit a minimum of, say 10 new members each per year. Failing to do so, they have to pay a penalty of P100 per member that they failed to recruit, the amount deducted from their allowances earned during meetings.

Why not charge a management fee/service fee equivalent to 10% of what your members get in Damayan/burian benefits? This is to cover administrative costs, i.e., collecting the P10 each from everyone for each member who dies. For the Damayan contributions collected from the field, maybe a higher fee of up to 15% could be charged.

To expand the benefit coverage of Damayan, why not include associate members, maybe even non-members in the community, regardless of age.

Thinks of the added service to the community. Think of the fees that may be collected as miscellaneous income by your cooperative. Anyway, your cooperative has a group of collectors. Portion of the fees collected may be shared as commission to the collectors, to encourage full collection.

Is your cooperative assisting your subsidiary-Mutual Benefit Association, Inc. (MBAI) in collecting the premium for their microinsurance coverage? Why not charge a c
collection fee/underwriting fee? If the fees had to be collected individually from each member in the field, charge a higher collection fees.

Say, for example that your cooperative was able to collect MBAI premiums of P600 each from 6,000 members. The premiums would amount to P3.6 million. If you can charge 10% fees on that, that would be P360,000 income.

On the other hand, if the MBAI cannot collect, say from 4,000 of the members of the cooperative, it will be foregoing some P2.4 million in premiums. If the cooperative can collect this from these members, from the field, and charge a bigger collection fee of say 20%, that would be P480,000 in fee income.

Now, once your MBAI is accredited by the Insurance Commission to underwrite credit insurance, your cooperative may now get this insurance from the MBAI. Your cooperative used to get credit insurance from commercial insurance companies before and were able to get rebates. (Some rebates might be going to the insurance agent, inside or outside of your cooperative.)

Why not charge insurance underwriting fees? Be creative.

I believe that your MBAI will not object to this income sharing scheme from fees/commissions. After all, your cooperative may have "invested" (officially, donated) quite a some of money to put up this MBAI. In the case of our cooperative, we donated P5 million, as the MBAI's initial guarantee fund; and P1-million as start-up operating funds.

This is one way for the MBAI to share/pay back for such investment.

There are many more creative ways to earn incomes from fees, for services rendered to members who have been getting these services for free, for the longest time.

Now, if your cooperative is hard put in generating more income, given the high loan delinquency, the members of the cooperative should also share the cost of assuring the viability and long-term sustainability of your cooperative.   So there. (END).

OPERATIONAL ISSUES BETWEEN THE COOPERATIVE'S DAMAYAN ASSISTANCE PLAN AND THE INSURANCE SCHEME OF THE COOPERATIVE'S MUTUAL BENEFIT ASSOCIATION, INC.

2011-11-19T00:00:00.000-08:00

At present, I believe that there are some 14 Mutual Benefit Association, Inc. (MBAI), which were formed mostly by cooperatives.

These were duly registered/licensed by the Insurance Commission (IC), to replace the cooperatives' respective in-house insurance schemes, which were allowed until December 2011 only, under the joint circulars of the Securities and Exchange Commission (SEC), the Cooperative Development Authority (CDA) and the IC.

These MBAIs were allowed by the IC to be created with low capitalization so that they may be able to provide microinsurance coverage to the members of these cooperatives.

In addition to the MBAI coverage, the members of the cooperatives are also members of the Damayan, a self-help assistance scheme, which was retained by cooperatives and allowed by the SEC, CDA and IC.

Although these are two separate plans: one is formal insurance (MBAI), the other is an informal mode of assisting the members, usually in meeting their burial needs. There are distinct features and benefits. The cost to the members are different; and the amount of benefits are not the same, presently.

For example, in our cooperative, the yearly microinsurance premium to the MBAI is P600. This has a corresponding death benefit of P30,000. On the other hand, the average annual cost of membership to the Damayan is at P400.

This is based on the assumption that some 40 members die each year. Each Damayan mamber shells out P10 for every Damayan member who dies. However, the present benefit for Damayan comes up to P70,000 to P80,000.

In most instances, the cooperative's member chooses between either of the two. And in this instance, the Damayan is preferred. This is contrary to the concept that the MBAI insurance coverage and Damayan membership should complement each other.

The cooperative's leaders/officers should look at the long-term benefit of the MBAI to the cooperative and its members. If the MBAI grows, it can provide other insurance packages such as the credit insurance to the loans of the members of the cooperatives. On the other hand, the benefit of Damayan is purely short-term and is designed to benefit primarily the members.

To make this happen, the membership with the MBAI should be made mandatory to all members of the cooperatives and the payment of the MBAI premiums should be a priority. If the operation of the Damayan Plan should conflict with that of the MBAI, Damayan membership should take second priority.

What do you think? So there. (END)

WERE YOU LIVING UNDER A ROCK LATELY? HAVE YOU NOT NOTICED, COOPERATIVE DEVELOPMENT AUTHORITY MADE OVER ITS WEBSITE; PHIL. COOP. CENTER HAS A FACEBOOK SITE, AND OTHER SOCIAL NETWORKING NEWS, COOPERATIVE RELATED

2011-11-16T03:19:00.000-08:00

You might be living under a rock lately, like I was during the last weeks. (That explains why I posted new content only now.). While I was sleeping (figuratively), some good things have turned up, cooperative-wise. On social media use by some cooperative stakeholders, that is.

I used to visit regularly some cooperative-related sites. Some of these are those of the Cooperative Development Authority (CDA); Securities and Exchange Commission (SEC); Bangko Sentral ng Pilipinas (BSP); BIR; DILG; NEDA; and NAPC, among others.

For a while, nothing much was new in these sites. That is why I did not visit them for a while. (That could be a reason, I am having few visits in this blog lately, too).

Last weeks were a surprise. For example, the CDA main office did a make-over of its website. A total departure from the old one. In addition, CDA even had a new Facebook account. Great! In addition, CDA even created a separate Facebook page for cooperatives and other stakeholders seeking for feedback from them.

However, the last time I visited this Facebook site, there was not much feedback. Either not many cooperatives know about it yet, or the findings of a recent study might hold true. The study says that only about 1% of site visitors ever make a comment, or ticks off the "like" button. The great majority are called "lurkers"; or they just look; lurk, or are just plain "uzi", or "usisero".

Anyway, I do not know if the webpage developer of CDA main is the same as that of CDA Zampen. They have basic similarities in format and style.

Prior to CDA main's Facebook site, there were others from some CDA regional offices and even from CDA officers. However, they were mostly "social", or personal and less of the official corporate Facebook sites.

On the other hand, some CDA regional websites were not updated regularly despite the many new things that are happening in the cooperative sector. Hence, they do not become "hot" sources of information on cooperatives.

But one thing that the CDA Zampen website has and the CDA main website does not, is what is called a " chat box." Using the "chat box," any visitor (without any prior requirements or fuss) can post online queries, comments or information. The queries get a fairly timely response.

One new content feature of the CDA main webpage is the news section where news releases and even copies of speeches on cooperatives are posted to be viewed or even downloaded.

Another new content feature is the posting of all cooperatives registered by CDA. However, the data include merely the name of the cooperative; the province/regional location; date of registration; and not much more to be of real interest to serious researchers.

I have seen a much comprehensive listing, which my source said also came from CDA main. This one contains such data as the subscribed/paid capitalization; assets; and even the names of managers/contact persons, including their landline numbers; cell numbers and even the e-mail address of some.

Did I mention that the Philippine Cooperative Center also recently created a Facebook account? However, its webpage is sorely in need of updating/make over; and posting of current and relevant content.

Well, that is all for now. Please visit the abovementioned websites if you have not done so. I say that doing so will update you particularly on the new CDA memorandum circulars. So there. Happy surfing! (END).

ATING KOOP PARTY LIST REP. ISIDRO Q. LICO BATS FOR THE ENACTMENT OF "THE COOPERATIVE BANKING ACT."

2011-11-05T23:02:00.000-07:00

Cooperative banks should "exist as one entity, separate and distinct and form and characteristics from all other banks" if they are to fulfill their role in the country's development and financial service to the people.

Thus, said, Ating Koop Party List Rep. Isidro Q. Lico, in his privilege speech pushing for the enactment of House Bill No. 4478, to be known as "The Cooperative Banking Act."

Authored by Coop Natcco Party List Reps. Jose Ping-ay and Cresente Paezoop, the bill will prescribe a set of rules and guidelines unique to cooperative banks rather than just following the rules of rural banks, which by nature and description are different from cooperative banks, according to Rep. Lico.

"Cooperative banks, as all cooperatives do, act not only for the benefit of their members, but for the whole Philippine community as well," he informed.

Cooperative banks have for so long served and addressed the financial needs of the underprivileged market. Cooperative banks have long defined the needs of these vast population which have not been catered by the banking industry by making its services accessible and member-friendly, Rep. Lico added.

As of June 30, 2011, there are 166 cooperative banks operating nationwide - 10 in Luzon; 16 in the Visayas; and 40 in Mindanao. The total assets of cooperative banks has reached P16-billion or a year-on-year growth rate of 0.07%.

As of the same period, the total deposits of cooperative banks amount to P10.072 billion, which is 100% covered by PDIC. It has a total loan portfolio of P12.043 billion. Cooperative banks have a capital adequacy ratio of 17.13%, Rep. Lico also reported.

He also hailed the creation of the Strengthening Program for cooperative banks, with the assistance of the Landbank of the Philippines; Development Bank of the Philippines and the Philippine Deposit Insurance Corporation.

Under this scheme, cooperative banks which are under prompt corrective action by the Bangko Sentral ng Pilipinas, are given additional period of time to gain back their solvency.

"Thank you to the Bangko Sentral ng Pilipinas for understanding the plight of cooperative banks and for encouraging their merger and consolidation to further strengthen them," Rep. Lico said. (END).

PAMPANGA PROVINCIAL COOPERATIVE DEVELOPMENT COUNCIL AWARDS 28 OUTSTANDING COOPERATIVES

2011-11-03T00:56:00.000-07:00

Hailing the contribution of cooperatives to the transformation and economic development of Pampanga, the Provincial Cooperative Development Council (PCDC) has awarded the top 28 cooperatives in the province during the recent celebration of Cooperatives Recognition Day.

The awarding was led by Pampanga Governor Lilia G. Pineda and PCDC chairman Juanito Mercado.

Of the top cooperatives, the following were cited for being most conscientious in their compliance with the regulations of the Cooperative Development Authority:

Multi-purpose Cooperatives of Dau, in Mabalacat; Floridablanca Municipal Employees; San Fernando Elementary School and in Sitio Caldo in Candaba.

The most promising cooperatives award went to Sta. Monica SRP Marketing Cooperative; and the Department of Natural Resources Office 3 (DENRO) Consumer Cooperative.

Cited as best in community service are: Romana Pangan District Hospital in Floridablanca; Calibutbut Multi-purpose Cooperative in Bacolor; and San Simon Multi-purpose Cooperative.

Awarded for its volume of transactions were Calibutbut Multi-purpose Cooperattive; and Minalin Poultry and Livestock Multi-purpose Cooperative.

The top cooperative with the most number of of members served were Mabalacat Public Market Venders Multi-purpose Cooperative; St. James the Apostle Multi-purpose Cooperative in Guagua; Golden Group Gabay Puhunan Brotherhood Multi-purpose Cooperative; and ASCCOM Multi-purpose Cooperative.

Awarded for having the most efficient business operations were Cruzian Multi-purpose Cooperative; Guagua Businessmen and Professional Multi-purpose Cooperative; Pampanga High School; and Apung Monica de Minalin Multi-purpose Cooperative. (END)

Co-op members need not be taxed

2011-11-01T17:19:00.000-07:00

Co-op members need not be taxed

A MODEL FOR PHILIPPINE COOPERATIVE DEVELOPMENT

2011-10-30T16:54:00.000-07:00

A MODEL FOR PHILIPPINE COOPERATIVE DEVELOPMENT

HOW I, AN 'ANALOGUE' COOPERATOR, WAS INTRODUCED INTO THE NEW SOCIAL MEDIA (IS THIS ALSO YOUR COOPERATIVE LEADER'S STORY OF TRANSITION?)

2011-10-28T02:25:00.000-07:00

I guess the Facebook names of many cooperatives, of cooperative personalities , and other stakeholders prove, at last, that there is growing realization among them, of the communication necessity for social media and belonging to a growing community of cooperatives online.

This early, cooperators who are now well-versed (I am not one of those) in this new mode of communication have the opportunity to study this growing phenomenon, I mean the use of it by cooperators.

I myself is fairly new in this activity (Facebook, blogging, Tweeting). I guess this is characterics of many in my generation. I have evaded using this technology for the longest time. Until lately when I found it a necessity as a means to reach out to cooperatives.

I belonged to the typewriter generation. I started to work, when the standard issue was a manual typewriter. Now, it is a laptop, in addition to desk-bound computer stations. Then, when computers are still as big as a building or a room, the typewriter was the 'in' gadget.

We felt like 'innovators' and 'trailblazers' then, crafting our work straight from the trusty Underwood. Later came the IBM Selectric (electric) typewriters.

Even then, we stuck it out with the clickety-clack manual and let the electric gadgets to the secretaries and executive assistants. (These positions are now passe, I guess.). Then, we were awed by our supervisors, who can dictate to stenographers their thoughts, clear and concise. We tried to emulate them by thinking and writing straight using the typewriter.

I guess many of us still have this mindset. We can still do the 'thinking' part. We can still 'draft' our writing output and let somebody else do the 'final typing', and faxing (later, e-mailing). We can call this the 'analogue' mindset.

Much later in my work stint, and finding that my 'retirement benefits' can only sustain my maintenance medicine, I was back to work again. When we were first employed, our lament was "my take-home pay cannot take me home." Now, our pension cannot sustain, what is already a low, very low-maintenance lifestyle.

So back, I am to private (re)employment. It was quite a 'culture" shock to find out how competitive the work environment had become. Then, we called independent workers as 'one-man army.' Now, they call them multi-taskers.

There are no assistants; no secretaries to do the 'menial' tasks for others. You are expected to do everything. And the computer, the laptop are supposed to help you do it, alone.

Of course, there are also the mobile phones where you get your 'memorandums', directives, advice on what to do, when and how. These are relayed via what are now called the e-mail messages.

But I guess my generation had to come around and adopt to this 'digital' mindset.

I guess that, that about reflects the journey many cooperatives and their leaders are taking, in terms of using the social media. The younger generation is well-versed in this. Hopefully, the many senior cooperative practitioners (still out there, and will be for sometime yet) will grow to learn and even enjoy using Facebook, blogging, Tweeting and whatever is out there in the Internet.

Social media are no longer what many of us in the 'analogue' generation mistakenly take as for those "with nothing else better to kill their time." They are now the 'must thing' to do.

This is if we should continue to satisfy our need to share information, to communicate and to continue to be part of the new community, online. (END).

Subsibiarity Pointers | The Manila Bulletin Newspaper Online

2011-10-26T16:22:00.000-07:00

Subsibiarity Pointers | The Manila Bulletin Newspaper Online

"..NANATILI PA RING DAMBUHALANG BALAKID SA TULOY-TULOY NA PAG-ARANGKADA NG ATING BANSA ANG MALUBHANG KAHIRAPAN..." -PANGULONG AQUINO

2011-10-26T03:11:00.000-07:00

(Mga piling sipi mula sa talumpati ni Pangulong Aquino sa Pangkalahatang Pulong ng mga Batayang Sektor ng NAPC, ika-17 Oktubre, 2011, Philippine International Convention Center):

"....Magandang umaga po.

Ipagpaumanhin po ninyo kung sisimulan ko ang ating talumpati sa pamamagitan ng isang mapait na katotohanan:

Sa kabila ng layo ng ating naabot sa loob lamang ng maikling panahon, nanatili pa ring dambuhalang balakid sa tuloy-tuloy na pag-arangkada ng ating bansa ang kahirapan.

Oo, kaliwa't kanan ang mabubuting balita na natatamasa ng ating administrasyon sa tuwid na daan, subalit hindi tayo maaaring makuntento.

Bawa't mesang walang laman; bawa't tiyan na kumakalam ay tanda na marami pa tayong dapat gawin. Alam naman siguro natin ang lalim ng kumunoy ng problemang minana natin.

Mantakin po ninyo, umabot na sa halos 5.2 million ang naitalang naghihirap na pamilyang Pilipino nitong 2009, ayon sa National Household Targeting System for Poverty Reduction.

Katumbas po ito ng humigit-kumulang dalawampu't limang milyong Juan de la Cruz na nananatiling kumakalam ang tiyan, napipilitang papasukin ang anak sa trabaho imbes na sa silid-aralan, at dinadaan na lamang sa pagtitiis ang dapat sanang pagbisita sa pagamutan.

Subali't hindi po tayo nailuklok sa posisyon upang magmukmok lang; ipinagkatiwala sa atin ng taumbayan ang layuning maibsan ang gutom at kahirapang matagal nang nagpapaluhod sa Pilipinas.

Isa na po ang National Anti-Poverty Commission sa mga ahensyang naatasang labanan ang kahirapan. Binuo po ang NAPC sa layong maipatupad at maipalaganap ang Social Reform Agenda ng pamahalaan - ang mapagtibay ang pagtutulungan ng gobyerno at ng mga batayang sektor sa pagtugon sa kahirapan at sa mga 'di pagkakapantay-pantay sa lipunan.....

....At ngayon po, unti-unti na nating natatamasa ang bunga ng pagbabagong ito. Nagpapasalamat po tayo sa bumubuo ng NAPC.....Naniniwala akong malaking hakbang itong National Sectoral Assemblies natin sa krusadang maibsan ang gutom at kahirapan sa bansa.

Maliban sa pagiging behikulo para maipaabot ng ating mga batayang sektor ang kanilang pananaw at hinaing, mekanismo rin ito upang matalakay ang mga bagong estratehiya at paraan upang magdulot ng positibong pagbabago sa mga sektor at sa buong bansa.

Ang pagbubuklod-buklod po nating ito ay susi upang mas maging peketibo ang pagpapatupad at pagpapalaganap ng ating mga inisyatiba kontra-kahirapan.

Mas bukas at masusing ugnayan na may malayang pakikilahok mula sa mga local government units at sa komunidad - ito po ang nakikita nating solusyon sa mas mainam nating pagsugpo sa katiwalian at kahirapan.

Bukod sa pagtukoy sa pinakamahihirap na bayan sa buong bansa kung saan natin itutuon ang ating mga inisyatiba, bibigyang-pagkakataon din natin silang lumahok sa pagbalangkas ng mga programa kontra-kahirapan.

Ngayong mas binigyang-tinig at lakas ang mga batayang sektor, mas marami tayong sasagwan tungo sa tuloy-tuloy na pagsulong ng bansa. Ibabalik natin ang liwanag ng pag-asa; ang kompiyansa ng maralitang mamamayan na taglay nila ang kakayanang lampasan ang kahirapan.

Ang paglaban po sa kahirapan ay nananatiling pangunahing layon ng ating administrasyon, at wala na po talagang atrasan sa laban na ito....

Ang pakikilahaok ng labing-apat na batayang sektor sa pagkalap ng mga solusyon; ang inyong masusing pakikibalikat sa pamahalaan; ang sama-sama nating pagtahak sa tuwid na daan -ay mga patunay na nariyan kayo palagi; na hindi po ako nag-iisa.

Ito naman ang nagtutulak sa atin upang lalo pang magpursigi para bigyang-lunas, sa lalong madaling panahon, ang gutom at kahirapan. Makaaasa kayo na ang inyong lingkod, kasama ang buong puwersa ng ating pamahalaan, ay mananatiling tapat sa sinumpaang tungkulin sa sambayanang Pilipino.

Maging tanda nawa ang pagtitipong ito sa kahandaan nating magkaisa -ang maiparating ang kapit-bisig nating panawagan at paninindigan upang akayin ang ating mga pinakanangangailangang kababayan palayo sa kahirapan.

Napaghihiwalay man ng libong mga pulo, muli nating patunayan na kaya ng Pilipinong magbayanihan tungo sa landas ng pag-asensong walang maiiwanan.

Maraming salamat po..." (END)

"TRANSFORMATIVE COOPERATIVES: ADVANCING PEOPLE, PLANET, PROSPERITY AND PEACE ("KOOPERATIBA: SAMA-SAMA SA PAGKANDILI SA KALIKASAN")"

2011-10-24T02:03:00.000-07:00

In celebration of October as Cooperative Month, we are taking liberties to reprint this Editorial which came out on October 18, 2011 issue of the Manila Bulletin and also on Tempo of same date (no doubt, at the instance of the
Cooperative Development Authority):

Over seven million members of more than 20,000 cooperatives in various parts of the country join hands to celebrate
Cooperative Month this October.

Led by the Cooperative Development Authority, the 2011 celebration has the theme "Transforming Cooperatives: Advancing People, Planet, Prospertiy, and Peace" with the sub-theme: "Kooperatiba: Sama-sama sa Pagkandili sa Kalikasan."

Activities lined up for the celebration aim "to put cooperativism in the public imagination and consciousness, anchored on the truism that cooperativism is the only democratic process...that can liberate people from the pangs of hunger and poverty."

These activities include thanksgiving masses, parade and motorcades, planting of an estimated 50,000 seedlings in all the 15 regions in coordination with the Department of Environment and Natural Resources, "Planet Forum" symposiums in Metro Manila, film showing, trade exhibits, sports fests, coastal clean up, and cultural presentations.

The cooperative movement in the Philippines which began in the 19th century, continues to serve as an instrument for the economic empowerment of poor and rural Filipino workers.

The Cooperative Development Authority, with which cooperatives in the Philippines are registered, was created by Republic Act 6939 that was signed into law on March 10, 199o. This was later amended by Republic Act 9520, the Cooperative Code of 2008.

The cooperative movement in the country has achieved great success perhaps owing to the inherent 'bayanihan' spirit among Filipinos.

With appropriate support mechanisms and incentives from government and relevant agencies, the cooperative movement in the country will remain a steady force that can empower Filipinos to improve their quality of life.

It can likewise be mobilized to help address other issues and concerns confronting the country, such as preserving and nurturing the environment.

(Hail to the cooperative movement!) (END).

PRES. AQUINO CITES ROLE OF NATIONAL SECTORAL ASSEMBLIES, CONSISTING OF COOPERATIVES AND 13 OTHER BASIC SECTORS, IN ALLEVIATING POVERTY IN THE COUNTRY

2011-10-22T01:38:00.000-07:00

President Benigno Aquino III hailed the role of the 14 basic sectors, represented in the National Anti-Poverty Commission (NAPC), in the multi-sectoral initiatives to alleviate poverty in the country.

Pres. Aquino, who is ex-officio chairman of NAPC, addressed the National Sectoral Assemblies (NSA), attended by officers of the basic sectors, which was convened last October 17, 2011, at the Philippine International Convention Center, the first time under the new government, since it was installed more than a year ago.

The 14 basic sectors represented in NAPC includes cooperatives; artisans; fishermen; farmers; indigenous peoples; non-government organizations; persons with disabilities; senior citizens; urban poor; victims of disasters; women; formal labor and migrant workers; workers in the informal sector; youth and students.

Aquino said, he believed that the convening of NSA is a big step in the crusade to alleviate hunger and poverty in the country. This will serve as a vehicle for the basic sectors to convey their insights and sentiments, and also as a mechanism to discuss new strategies and means to effect positive change among the sectors and in the whole country, he informed.

He said that this convergence will be the key to the effective implementation and promotion of the initiatives against poverty.

"The participation of the 14 basic sectors in coming up with solutions; your close partnership with the government; our united journey in the right path - are proofs that your are always there; that I am not alone," Pres. Aquino pointed out.

"May this occasion be a sign of our readiness to be united - to convey our united call and commitment to guide our neediest countrymen away from poverty. Even while divided by thousands of islands, we will once again prove that the Filipino can work together towards the path of development where no one is left behind," the President added. (END)

'CURIOUS' TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION ISSUED TO A COOPERATIVE BY THE BUREAU OF INTERNAL REVENUE

2011-10-20T01:58:00.000-07:00

The good news is that this cooperative had recently received its Certificate of Tax Exemption (CTE) from the concerned regional office of the Bureau of Internal Revenue (BIR). It now joins the privileged few who were granted the much-coveted CTE. I say 'few' because lately, over 20% of cooperatives had been issued such CTEs, per published reports.

Indeed, tax exemption is a privilege the enjoyment of which carries with it a number of terms and conditions that the cooperative must comply with to continue the enjoyment of such benefit.

In a cooperative forum, an officer of this cooperative intimated that there were provisions of the CTE issued her cooperative, which she finds 'curious.'

One such condition she showed me, and I quote: " xxx Books of accounts and other accounting records of the cooperative and its actual operations for any taxable year (fiscal or calendar) shall be subject to annual verification by the Commissioner of Internal Revenue or his duly authorized representatives after previous authorization by Cooperative Development Authority xxx." I asked why she finds it 'curious'?

She answered that it was 'curious' because prior to the issuance of the CTE, her cooperative received a Letter of Authority (LoA) from BIR. This is for the tax audit of her cooperative for a previous year's operations. Upon receipt of the LoA, her cooperative politely asked for a copy of the authorization from CDA. The BIR did not give one and apparently did not secure such prior authorization. Curious.

She said another condition says that "xxx all cooperatives are required to yearly submit to the appropriate Revenue District Office the following information or documents together with the filing of the cooperative's Annual Information Return (BIR Form 1702) due on or before the 15th day of the fourth month following the close of the calendar year xxx..". Curious still.

She thought (and I vaguely remember also) that the filing of the Annual Information Return was deferred. She said, she do not remember said deferment being formally lifted.

In a published report, Valuenzuela City Rep. Magtanggol Gunigundo and vice chairman of the House Ways and Means Committee was reported as having assailed the recent issuance by BIR Commissioner Kim Henares of a new memorandum reviving her proposal to require all individual taxpayers to file an Annual Information Return.

Another, she informed, is the required submission of the " Original Copy of Certification under oath by the Chairperson/General Manager of the List of Members, their respective TINs, and the Share Capital Contribution of each member as of the year end concerned xxx.."

Curious, she said because this requirement was also earlier lifted, but in lieu of which, the list of members submitted to CDA had been accepted, without the TIN of all members of the cooperative. She does not remember seeing any BIR issuance saying that the TIN of members shall be required again.

The concerned cooperative does not know what to do. There must be other cooperatives out there similarly situated. I think that you need to write the BIR for some clarifications, copy furnished your local CDA office, and don't forget your cooperative party list representatives. They might be of help on this. Good luck. (END)

COOPERATIVES MUST REVISIT THEIR LENDING STRATEGIES TO OVERCOME THE SCOURGE OF CREEPING LOAN DELINQUENCIES

2011-10-18T14:22:00.000-07:00

If anything could surely kill a credit cooperative, other than fraud by its officers or management, it is the scourge of loan delinquency.

As I look back at the forty something years of our cooperative, I believe that there is only one thing that can put it down. It is loan delinquency by members.

We have grown over the years. The fact that our cooperative has lasted this long is a testament to the sincerity and integrity, of our cooperative's leadership and management.

We did not experience any serious leadership crisis among the officers, nor between the officers and management. Early on, it was observed that the Board of Directors tended to be management-led. It has grown and has become more independent, but not adversarial to management.

In the near future, I do not foresee any leadership crisis happening, at least with the present crop of leaders.

Our cooperative's leadership is homegrown. I was witness to the first generation of leaders. They may not have been banking or financial experts. But they are the epitome of volunterism and dedication to the service of the cooperative and its members.

Leadership wise, if anything that I personally fear in 5 to 10 years' time is that we may be neglecting to develop replacement leaders from the younger crop of members. And the age profile of present leaders shows it.

But then again, the most critical concern our cooperative, and perhaps this is true of other cooperatives, is the problem of loan delinquency. Perhaps, if the prudential regulations and standards were to be strictly enforced today, many cooperatives-credit or otherwise- would have to fold up.

The remaining would have to be placed under rehabilitation, or under what the Bangko Sentral ng Pilipinas calls as "preventive corrective action," if cooperatives were banks. Under the COOP-PESOS standards alone, many cooperatives might be stopped from operating.

From where I seat, cooperatives must overhaul their lending schemes and strategies. Over the years, cooperatives evolved their lending schemes and practices. These appear to be a cross between those currently practiced by many rural banks and microfinance institutions.

Most cooperatives are already weaning themselves from the 'deposit-based, multiplier scheme' of extending credit to their members. Here, for example, in Cycle 1 of the loan, the loanable amount is 1.5 times the member's share capital; 2 times in Cycle 2; 3 times in Cycle 3 and so on.

Now, the member-borrower's capacity to pay is being made the principal criterion of extending loans. Here, the loanable amount is determined, where the resulting monthly amortization of the loan shall not exceed a certain percentage (some at 40%) of the monthly income of the borrower, either on gross basis, or net of monthly obligations.

Even this is a tricky way of determining credit, as there is no sure-fire way of knowing the borrower's other obligations (credit card loans, etc.). Also, while microfinance institutions kept their loan repayment terms short, many cooperatives have granted loans of up to 5 years, in the mistaken notion that loan amortizations can be affordable and within borrower's capacity to pay.

They are finding out now that the longer the term (and the bigger the loan) the riskier it is for the cooperative. Any unfortunate incidents, like sickness in the family, etc. easily results in the borrower's missing to pay the amortization.

Then, there is the 'cash-flow' method of determining credit. If the daily sales of the borrower's business can easily pay for the daily amortizations, then the loan is a go. This is also based on the premise that the loan proceeds will be used for livelihood and not merely for provident purposes.

Indeed, cooperatives must take lessons from the loan strategies of microfinance institutions. Here, the loans, although collateral-free, are relatively small; with short repayment period; paid/collected on daily basis; granted under strict supervision; and the interest rates are commensurate to cover the possible loan risks. Interest rates on microfinance loans range from 3 to 5% per month.

If only to forestall delinquency, let's pick up some prudential techniques and strategies even from 'Bumbays' and their local 5-6 counterparts. But surely, cooperatives must not depart from cooperative principles and practices.

I strongly suggest that cooperatives must adopt these preventive, anti-delinquency schemes. And soon. This is to assure their sustainability. And to somehow save them from the slow but sure death from loan delinquency.

For sure, once delinquency occurs, the cooperative and the member both loses. And no amount of collection or other remedial measures can reverse this unhappy situation. (END).

Co-operative News

2011-10-18T00:12:00.000-07:00

Co-operative News

Microinsurance Philippines: Cash transfer beneficiaries targeted for microinsurance

2011-10-16T14:15:00.000-07:00

Microinsurance Philippines: Cash transfer beneficiaries targeted for microinsurance

Microinsurance Philippines: BPI microfinance bank ventures into microinsurance

2011-10-16T14:13:00.000-07:00

Microinsurance Philippines: BPI microfinance bank ventures into microinsurance

Microinsurance Philippines: Government abandons prototype for life microinsurance product

2011-10-16T14:12:00.000-07:00

Microinsurance Philippines: Government abandons prototype for life microinsurance product

NATIONAL ANTI-POVERTY COMMISSION TO CONVENE NATIONAL SECTORAL ASSEMBLIES, OCT. 17-19; COOPERATIVES SECTOR AMONG THOSE INCLUDED

2011-10-15T19:07:00.000-07:00

Around one year into the administration of Pres. Aquino III, the National Anti-Poverty Council (NAPC) is finally convening some 1,300 leaders of civil society organizations, representing some 14 basic sectors - including the cooperatives sector -to consult with them on the implementation of the national anti-poverty strategies of the government.

Sec. Joel Rocamora of NAPC said that the National Sectoral Assemblies (NSA), comprising the leaders of the civil society organizations, who are NAPC's partners, will be convened on Oct. 17-19, 2011.

The NSA seeks to strengthen the partnership between the government and the basic sectors of the Filipino poor, which is crucial in the crafting of effective anti-poverty strategies, according to Rocamora.

The basic sectors -other than the cooperatives sector- are: artisans; fisherfolk, children; farmers; indigenous peoples; non-government organizations; persons with disabilities; senior citizens; urban poor; victims of disasters; women, formal labor and migrant workers; workers in the informal sector; youth and students.

NAPC, created by R.A. 8425 (also known as the "Social Reform & Poverty Alleviation Act") is chaired by Pres. Aquino III. It institutionalizes the government's Social Reform Agenda.

NAPC acts as the "coordinating and advisory body" that exercises oversight functions in implementing the social reform agenda of the government, which is key to the government's drive for poverty alleviation.

Here is hoping that the officers of the basic sectors will soon be elected/chosen to firm up the representation of the Filipino poor in the NAPC and for the adoption of their respective agenda to help their respective sectors. (END).

HOW RELEVANT IS THE COOPERATIVES' SECTOR'S AGENDA TO THE COUNTRY'S OVERALL PLAN TO ERADICATE/ALLEVIATE POVERTY IN THE COUNTRY?

2011-10-11T01:18:00.000-07:00

Perhaps not everyone knows that the cooperatives sector is part of the overall government plan to help alleviate poverty in the country. Cooperatives are among the 14 'basic sectors' represented in the National Anti-Poverty Commission (NAPC).

NAPC, created under R.A. 8425, is an office under the Office of the President of the Philippines, and the President of the Republic of the Philippines sits as head of NAPC. NAPC acts as the coordinating and advisory body that exercises oversight functions in implementing the Social Reform and Poverty Alleviation Agenda of the government.

It is regrettable that NAPC apparently does not yet have an approved Anti-Poverty Framework. The last time we visited its website (www.napc.gov.ph), this is what it has to say:

"NAPC is currently waiting for the Anti-Poverty Strategy it has submitted to the office of the President (of the Philippines) Human Development Cabinet Cluster to be approved. It will be shared with the general public once this approval is secured.."

Likewise, on the selection of representatives from the 14 basic sectors (which include cooperatives), this is what website says:

"NAPC is currently in the process of preparing for the National Sectoral Assembly (as provided by R.A. 8425) where the fourteen basic sectors will select their respective sectoral council and representatives.."

But nonetheless, the following are listed in the NAPC website, as the key issues/agenda of the Cooperatives Sector:

"...Cooperatives see the issuance of a certificate of tax exemption as essential relief for their small enterprises to survive...

They also call for changes in the Bureau of Internal Revenue's requirement on cooperatives, especially on allowing the submission of an e-copy of the cooperative members' names and their corresponding share capital as a valid method of compliance...

They also give urgency to their and other sectors' representation status in governance through NAPC under the new administration.

A related pressing issue for cooperatives is government's budget commitment to NAPC, for which the sector is priming to mobilize and lobby for an increase in the commission's (NAPC's) resources..."

Let's contrast NAPC's Cooperatives Sector's agenda with the following 3-point agenda set forth by the Cooperative Development Authority (CDA), through its chairman, Dr. Emmanuel M. Santiaguel:

"..1) Mainstreaming membership in cooperatives, that is membership expansion with the goal of hitting 20 million Filipinos by year 2013, as members of cooperatives. (Currently, individual members of cooperatives are estimated to be 7 million.)

...2) Human resource development. This entails the establishment of support systems and structures for cooperative development, specifically through capability building for both the internal and external clients of CDA.

...3) Awards and incentives for cooperative partners and recognition of exemplary performance, best practices and good governance..."

Your opinion on which of the two set of agenda could be more responsive to the issue of cooperatives contributing to the alleviation of poverty in the country, is as good as mine. So there. (END).

IS YOUR COOPERATIVE NOT MEETING YOUR 3RD QUARTER OPERATIONAL TARGETS? TIME TO IMPLEMENT A 'CATCH-UP PLAN'.

2011-10-08T01:58:00.000-07:00

The onset of the last quarter of the year is like reaching a crossroad in the year's travel of your cooperative. It is a time to make a pause. You must decide either to turn left or right on the road, or to forge ahead.

Time to reassess how far your cooperative has gone in its operational journey. In plain language: has your cooperative achieve its targets during the last three (3) quarters? If you are off in your bottom line expectations, what are you supposed to do?

If your cooperative met your desired net savings during the last 9 months, well and good. Chances are you will be able to satisfy the dividends you would like to declare for the share capital of your members and the patronage refund you are going to give to your members who availed of the cooperatives' products and services, among other things.

If you are way off your targets, there might still be a little time left to do some remedial measures. Sometimes, some drastic actions must be done to realize sufficient income, or net savings by the end of the year. Your tool for this is the 'Catch-up Plan.'

If you are running a walk-a-ton and you had been taking your time during the early parts of the journey, the 'Catch-up Plan' will be your last attempt to surge ahead, to catch up with the winning group or at least to lessen the distance between you. This means shortening the gap between your cooperative's target and actual accomplishments.

The desired bottom line can only be achieved by doing two things. One is ramp up the productive side of the revenue generation activities. Can we still safely and profitably grant more loans to generate additional income from interest, fees and other charges? Can we still recruit more members that can add up more share capital, and who will in turn avail of more loans?

The other measure is to cut on expenses which have been accrued during the past 9 months, meaning the expenses allocated every month during the past 9 months.

For example, if during the last year's budget, your cooperative allocated, say 12% in dividends for share capital because of good income then, and you had accrued these as monthly expenses during last 9 months of this year, you might want to adjust the dividend rate to 9 or 8%, for example. The rate difference could be effected as savings to add to your net income/net savings.

From other administrative expenses, if for example, your cooperative had been accruing monthly expenses equivalent to two months in year-end bonuses to your employees and officers, maybe the allocation may be reduced to only one month.

As always, the game has always been maximizing revenues and cutting back on expenses without sacrificing the generation of more business activities, and without sacrificing the welfare of your employees or curtailing the services to your members.

Here is wishing you good luck on the ultimate achievement of your cooperative's Catch-up Plan. (END).

IT'S OCTOBER, THE COOPERATIVE MONTH: WHY IS EVERYBODY (ALMOST EVERYBODY) QUIET AND NOT CELEBRATING?

2011-10-05T01:27:00.000-07:00

Everybody looks forward to his birthday. It comes only once a year and its celebration is planned well in advance. What if your birthday comes and no one even greets you? Not even a gift, a cake and candles and the mandatory noodles, for long life? Depressing.

That is about how I felt with the onset of October, the traditional 'Cooperative Month.' It is now October 3 and I have not even seen a press release in the papers announcing the celebration of the month of cooperatives. Not even any peep or squeak from the Cooperative Development Authority, by way of a press statement, even in the agriculture section of the papers.

But in fairness, there was a CDA plan to celebrate October as "Cooperative Month." CDA Zamboanga Peninsula as early as Sept. 2, 2011 (almost one month ahead) published on its website the memorandum from the CDA acting executive director, directing CDA offices nationwide to encourage the participation of cooperatives on the celebration of "Cooperative Month 2011", complete with suggested activities; a theme and an artwork fit for a streamer or poster.

Cooperatives with Facebook pages picked this up and shared the artwork with themes and all, with their online friends. There was virtual celebrations on the Internet (Facebook, at least). There was even a programme shared online, for an Oct. 1 celebration, for a multi-stakeholder nationwide, simultaneous treeplanting activity in Antipolo and Tanay, complete with speakers and all. It appears that this one also fizzled out (err, postponed).

I will correct myself, there was one published article, an editorial on cooperatives which Manila Bulletin published on its Sept. 25, 2011 issue, if I remember correctly. The title of the editorial is "Cooperatives gain headway in the Philippines." There was no mention of the celebration of Cooperative Month. The editorial only mentioned the history of cooperatives and also extolled their importance.

The apparent absence of media information exposure on the celebration of Cooperative Month is in stark contrast to last year's holding of the 10th Cooperative Summit, a 3-day affair participated in by a large number of cooperatives held at the Araneta Coliseum, Cubao, Quezon City.

Once a year, many cooperative stakeholders look up to Cooperative Month as the time to hear about the state of cooperatives in the country. It is an opportunity for the Cooperative Development Authority to report on its much-touted Flagship Programs of 1) mainstreaming cooperative membership where members of cooperatives are planned to be increased from the present 7 million to 20 million by 2013; b) capability building program for both CDA and cooperatives nationwide; and c) launch of cooperative recognition/awards.

What about the state of implementation of the Medium-term Cooperative Development Plan? What about the status of the proposed legislation to amend the charter of CDA? If the CDA has not much budget for such celebrations, what about the national cooperative organizations?

This reminds me of a much-used saying to justify the use of advertising, which goes: "Business without advertising is like a guy winking at a girl in the dark. He knows what he is doing but nobody else does." Said another way, working for the development of cooperatives without media information is like a guy winking at a girl in the dark. He knows what he is doing but nobody else does. Sad. But then again, October is not yet over. So there. (END).

1ST CENTRAL VISAYAS COOP CONGRESS CONVENES ON OCTOBER 20-22, 2011 AT WATERFRONT HOTEL, LAHUG, CEBU CITY

2011-10-02T03:51:00.000-07:00

The Visayas Co-op Solidarity Council (VCSC), jointly with the Cooperative Development Authority (CDA), is convening the 1st Central Visayas Co-op Congress on October 20-22, 2011 at Waterfront Hotel, Lahug, Cebu City.

This was announced by Mercedes D. Castillo, VCSC chairperson along with Atty. Alexander C. Patac, officer-in-charge of CDA Region 7.

The CVCS is composed of cooperatives' federations; unions; and cooperative development councils in Region 7 (Central Visayas).

"This convergence of cooperative leaders aims to showcase the potential of cooperatives throughout Central Visayas and put forward the significance of cooperativism in the lives of every Filipino," Mercedes D. Castillo said.

The Congress aims to increase public awareness about cooperatives and their contributions to socio-economic development and the achievement of the country's Millenium Development Goals.

Among these are to a) end poverty and hunger; b) attain universal education; c) gender equality; d) Child health; e) Maternal health; e) Combat HIV/AIDS; g) promote environmental sustainability; etc.

The Congress also seeks to promote the formation and growth of cooperatives; and for the government to establish policies, laws and regulations conducive to such growth.

"We call on all cooperatives to participate and be part of this collaboration for the unification and growth of the cooperative movement in this part of the country," Atty. Alexander Patac added.

For particulars, contact the Philippine Cooperative Central Fund Federation, #20 M. Zosa St., Capitol Site, Cebu City; tel. nos 032.253.6091; fax: 032.255.2792; website: www.vcfph.net.

Victo National Cooperative Federation and Development Center, Central Visayas Regional Office, will also entertain queries. It is located at Capitol Hills, Barangay Kalunasan, Cebu City; tel. nos. 032.254.0602; fax: 032.253.1317; or the CDA office at tel. 032.268.2849. (END).

CO-OP SOLIDARITY COUNCIL HAS LAUNCHED INTEGRATED BUYING, DISTRIBUTION AND DELIVERY SYSTEM FOR PRODUCTS AND SERVICES FOR MEMBERS OF COOPERATIVES

2011-09-29T03:06:00.000-07:00

Without much fanfare, a network of cooperatives launched last September 20, 2011, an integrated procurement, distribution and delivery system that aims to link cooperatives --who are producers of goods and services-- and consumers, who are also members of cooperatives.

The network of cooperatives, under the umbrella of the Co-op Solidarity Council, will pilot-test the system in the National Capital Region, with the Vicentian Family Multi-Purpose Cooperative (VMPC) to serve as the Co-op Integrator, or the distribution arm of the integrated marketing system.

VMPC has been in the business of consumer goods distribution for almost a decade now. It was chosen as the main distribution arm of the project, dubbed KOOP Tindahan, after long consultations with the members of the Co-op Solidarity Council.

Partner-cooperatives, consisting of primary cooperatives, will screen their members who wish to purchase goods under the scheme and these cooperatives will also be responsible for paying for the goods ordered and received by these members.

Producer-cooperatives are envisioned to be the long-term suppliers of goods under the system.

The project is designed to develop markets for goods and services produced by cooperatives and their members. It also aims to maximize economies of scale to increase the leverage of of cooperatives with suppliers of goods and services.

In the process, this will help develop new entrepreneurs and provide livelihood opportunities to cooperatives and their members.

Cooperatives interested to participate may contact Mr. Lionel Abril, general manager of the Philippine Cooperative Center for more information.

Queries may also be addressed to the Vicentian Family Multi-Purpose Cooperative, located at 959 San Marcelino St., Ermita, Manila (beside San Marcelino Church; in front of Adamson University.). -END-

AS COUNTRY CELEBRATES OCTOBER AS COOPERATIVES' MONTH: COOPERATIVISM GAINS HEADWAY IN THE PHILIPPINES

2011-09-27T03:20:00.000-07:00

This editorial, published in Manila Bulletin last September 25, 2011 (Sunday), could very well have been intended for October, which is the celebration of Cooperative Month 2011.

As we share the sentiments contained therein, we feel obligated to reprint this in this space, as part of the celebration of the Cooperative Month and in recognition of the important role of cooperatives:

"Cooperatives, whether they are groups of farmers, fishermen, vendors, or electricity users banding together for a common purpose, are people-centered organizations formed to benefit its members.

They are government partners in the delivery of livelihood and micro-entrepreneurial activities geared to addressing the problems of illiteracy and poverty.

They help alleviate the living conditions of members through marketing support, credit facilities, new technology, adult education, livelihood opportunities, and scholarships for children.

In the Philippines, cooperatives are registered with the Cooperative Development Authority, created by Republic Act 6939 and signed into law on March 10, 1990 (Note: This law was amended by Republic Act 9520, the Cooperative Code of 2008) to promote the viability and growth of cooperatives as instruments of equity, social justice and economic development.

Cooperatives are based on the values of self-help, self-responsibility, equality, equity, and solidarity. The members learn honesty, transparency, social responsibility and caring for others. The use of funds is for mutual, rather than individual benefit.

Cooperativism in the Philippines started in the 19th Century when Filipino travelers in Europe, including the National Hero Dr. Jose Rizal, brought the ideal of the economic movement to the country. While in exile, in Dapitan, Dr. Rizal set up a school for the poor and a store on a cooperative basis.

Today, cooperatives are gaining momentum as vehicles for the economic empowerment of poor and rural Filipino workers. There are more than 20,000 registered cooperatives nationwide, and they help in the pursuit of people-oriented projects to benefit target beneficiaries, especially small farmers and fisherfolk.

It is hoped that given more government incentives as well as private sector support, the cooperative movement in the country will continue to flourish and make a difference in the lives of many Filipinos." (END).

COOPERATIVE DEVELOPMENT AUTHORITY, PHILIPPINE COOPERATIVE COUNCIL BARE OCT. 1, 2011 TREE PLANTING & 2011 COOP MONTH CELEBRATION PROGRAMME

2011-09-24T04:55:00.000-07:00

Interested cooperatives are invited to join this activity.

The following is the PROGRAMME for the Simultaneous National Tree Planting on October 1, 2011 at Tanay Rizal to usher in the 2011 COOP MONTH CELEBRATION:

5:00-5:45 a.m. -Cooperative Mass, Antipolo

Cathedral

5:45 -6:45 -Motorcade (Antipolo to Tanay)

to be lead by Antipolo City Local Government

6:45 -7:00 - Briefing with DENR, by Forester Mario

Lantican

7:00 -7:10 - Ceremonial Tree Planting, by CDA Chairman

Dr. Emmanuel Santiaguel & Phil. Coop Center

Chairman Butz Aquino; with Ms. Earth
winners; Mother Ricky Reyes; Congressmen,
Governors, Mayors & Other Guests.

7:10 -8:00 - Tree Planting Proper, by Cooperators.

8:00 -9:00 - Transfer to Program Site/Freshen Up/

Breakfast (Pot Luck), at Ynarez Multipurpose

Covered Court, Sto. Nino, Tanay, Rizal

P R O G R A M P R O P E R

9:00-9:30 - Parade of Colors, by Participating Coops.

- Prayer; and National Anthem by
Tanay Multipurpose Cooperative.

- Cooperative Pledge, Hamilcar Rutaquio,
chairman, Tagcodec.

9:30-9:35 - Welcome Address, by Hon. Rafael

Tanjutco, Mayor of Tanay, Rizal

9:35-9:40 - Opening Remarks, Agapito

"Butz" Aquino
chair, Phil. Cooperative Center.

9:40-9:45 - Inspirational Message, Hon. Casimiro A.

Ynarez, III, M.D.-Gov. of Rizal Province

9:45-9:50 - Message, Hon. Danilo O. Leyble, Mayor

of Antipolo, Rizal

9:50-10:00 - Overview: Framework of Activities,

by Dir. Orlando Ravanera, Acting
Executive Director, CDA

10:00-10:05 - Message from CDA Chairman,

Emmanuel Santiaguel, Ph.D.

10:05-10:15 -House Solidarity Messages (Show of

Solidarity and Commitment by the Coop
Party list Representatives: Rep. Ponciano Payuyo,
Rep. Isidro Lico, Rep. Cresente Paez,
Rep. Jose Ping-ay.

10:15-10:25 -CULTURAL PRESENTATION,

Tanay Multi-Purpose Cooperative

10:25-10:40 -Messages by DENR Sec. Ramon Paje;

Sen. Loren Legard; Sen. Lito Lapid.

10:40-10:55 -Opening and IYC Launching of

4P's, by Dr. Emmanuel Santiaguel, CDA chair.

10:55-11:33 -Symbolic Covenant, to be lead by

Rona Bunda (VICTO National)

11:35-11:45 - Blessing of Symbolic Covenant

& Closing Ceremony, by Fr. Mar DJ Arenas, PCC Vice Chairman

11:45 -LUNCH (Pot Luck) with film showing

Masters of Ceremony: Prof. Emmer Cruz
and Cielo Garrido

REMINDERS:

1. Wear lime green shirt and maong pants.
2. Wear spiked rubber shoes or bring rubber boots.
3. Extra clothes and face/hand tower (lime green).
4. Bring wide brimmed hat/cap.
5. Bring mineral water, pot luck lunch, merienda.
6. A hand-made bamboo shovel shall be provided at P2.00 to P5.oo a piece.
7. DENR will provide the seedlings and digging.
8. Coop flag for Parade of Colors (from participating primary coops; federations, unions/partners.)

FOR MORE PARTICULARS: call (02) 7256604 (CDA); or (02) 7824408; 7237392; 4166458 (END).

ATING KOOP PARTYLIST OFFICERS SAY CHARGES BY MR. RENATO ESTRADA ARE "PURE FALLACY, BASELESS, UNFOUNDED.."

2011-09-21T00:01:00.000-07:00

(Note: Sometime ago, a certain Mr. Renato Estrada, representing himself as a member of ATING KOOP Partylist, alleged that Ating Koop Partylist Rep. Isidro Q. Lico was engaged in certain reportedly "anomalous" transactions. It was widely reported in the newspapers that charges were allegedly filed by Mr. Estrada at the Office of the Ombudsman.

In this connection, we are reprinting below the published press statement jointly issued/signed by Rep. Lico; Fr. Mario Arenas, president of Ating Koop Partylist; and by Ms. Rosalina Limpo, chairman of Philippine Resortel and Education Service Cooperative (PRESCO):

Office of Hon. Isidro Q. Lico
AtingKoop Partylist
August 22, 2011

PRESS STATEMENT

Due to the smear campaign being launched against ATING KOOP PARTYLIST and its representative, Congressman Isidro Q. Lico, the undersigned felt it their duty to explain the facts IN THE INTEREST OF TRUTH:

1. The subject property, while it is still registered in the name of Fr. Mario Arenas, was sold some time ago to the PHILIPPINE RESORTEL AND EDUCATION SERVICE COOPERATIVE (PRESCO), a secondary Cooperative, which is presently the recognized beneficial owner of the property, only that the title has not yet been transferred to its name.

However, a deed of sale between the parties evidence that a contract of sale existed between them;

2. THERE WAS NO FIFTEEN MILLION PESOS (15,000,000) ALLOCATION FROM THE PDAF (PRIORITY DEVELOPMENT ASSISTANCE FUND) of Hon. Isidro Q. Lico for the construction of a road in Bay, Puypuy, Laguna.

The allegation of complainant, Mr. Renato Estrada is a pure fallacy based on unfounded and baseless grounds.

3. PRESCO had previously requested the support of AK Partylist to construct a Training Center therein, as had been done with Coop-NATCCO Partylist.

4. The role of Fr. Mario Arenas will simply be to effect the transfer of title to the local government of Bay, Laguna to allow the utilization of government funds, if and when the necessary approvals of the project from the parties concerned, (i.e., Cooperatives, the AK Party and the local government) have been secured.

5. At this point in time, ALL APPROVALS ARE BEING DELIBERATED UPON AND/OR ARE STILL UNDER PROCESS. NO FUNDS HAVE BEEN RELEASED AND NO CONSTRUCTION OF ANY STRUCTURES COMMENCED.

6. Lastly, as to the expenses incurred in the Anti RH Bill Rally held at Luneta as part of AK's "Respect for Life" Advocacy, Cong. Lico has no knowledge whatsoever of the allocation made for such activity.

The personal donation made by Cong Lico to the AK Partylist is for the purpose of the operation of the organization, and not specifically for the purpose of the RH Bill Rally.

The partylist can attest to this as the ATINGKOOP Partylist exercise transparency and accountability in all its affairs, within and outside of the organization.

Trusting that the foregoing will clarify doubts and that people who are politically motivated in their intentions may refrain from disseminating half-truths and lies and using false information campaign to mislead the people and destroy the reputation of the representative of the ATINGKOOP Partylist, Hon. Isidro Q. Lico, to whom the party has placed so much trust on.

May the Just and Merciful God guide us to the way of Truth.

(SGD.) FR. MARIO ARENAS
President, AtingKoop Partylist

(SGD.) HON. ISIDRO Q. LICO
Representative, AtingKoop Partylist

(SGD.) MS. ROSALINA LIMPO
Chairman, PRESCO

____________________________________________

CDA LEADS CELEBRATION OF 'COOPERATIVE MONTH 2011' THIS OCTOBER; URGES PARTICIPATION OF COOPERATIVES NATIONWIDE

2011-09-10T01:07:00.000-07:00

The Cooperative Development Authority (CDA) has lined up various activities for the nationwide celebration this October as "Cooperative Month." It has also called on its offices in various parts of the country to lead the celebrations and ensure the participation of all cooperatives.

The guidelines in the "Cooperative Month 2011" celebrations were spelled out in a Memorandum, dated September 2, 2011, issued by Orlando R. Ravanera, acting executive director of CDA. (a copy of which and streamer design may be viewed/downloaded at www.cdazampen.webs.com ).

This year's celebration is focused on the theme: "Transformative Cooperatives: Advancing People, Planet, Prosperity and Peace." It has a sub-theme: "Kooperatiba: Sama-sama sa Pagkandili sa Kalikasan."

With the celebration, "the more than 20,000 cooperatives in the country, with over 7 million members are joining hands, serving notice to all that...through their collective efforts- they will win back the future for their children," Ravanera said.

"October is their month, and we will carry out activities to put cooperativism in the public imagination and consciousness, anchored on the truism that cooperativism is the only democratic process now that can liberate people from pangs of hunger and poverty," the acting CDA executive director pointed out.

Among the activities lined up include getting cooperatives to display streamers in their offices bearing the theme of the Cooperative Month.

Starting October 1, simultaneous tree planting activities will be held in all 15 regions in coordination with the Department Environment and Natural Resources, for a target of 50,000 seedlings to be planted.

Moreover, a series of "Planet Forum" symposiums are scheduled to be held in Metro Manila to discuss topics on the nurturing and protection of the environment. (END)

SOLONS FILE BILL TO CREATE SURETY FUNDS IN EVERY PROVINCE, CITY AND MUNICIPALITY TO LET MSME MEMBERS OF CO-OPS BORROW FROM BANKS WITHOUT COLLATERALS

2011-09-08T04:51:00.000-07:00

The Bangko Sentral ng Pilipinas (BSP) can be credited for spearheading special projects. The main aim is to enhance the timely and effective delivery of credit to all productive sectors of the economy.

Among these special projects is the Credit Surety Fund Program (CSFP).

The CSFP, as contained in BSP reports, "is a credit enhancement scheme that allows micro, small and medium enterprises (MSMEs) that are members of cooperatives, to borrow from banks even without collateral.

Moreover, such loans granted by banks to members of cooperatives are eligible for rediscounting with with the BSP through its Department of Loans & Credit.

As of lately, there are estimated to be some 17 Credit Sure Funds (CSFs) already created all over the country.

This program will get a boost, a much needed one, if House Bill 4970, otherwise known as a bill to enact the Credit Surety Fund Act of 2011," will be enacted by Congress.

In a press statement supporting the bill, Reps. Erico Aumentado (2nd District, Bohol and Jocelyn Limkaichong (1st District, Negros Oriental) said the bill "will enhance the credit worthiness of MSMEs, who are members of cooperatives and broaden their access to the credit facilities of (formal) lending institutions."

Aumentado reported that MSMEs are forced to finance their working capital from informal sources that charge 'unconscionable' rates of interest.

The CSF is a fund generated from contributions by well-capitalized and well-managed cooperatives. These are joined by those coming from provincial, city or municipal governments and from participating government financial institutions, he said.

Limkaichong said that CSFs "will also build up the capability of cooperatives in the areas of credit evaluation, loan and risk management and governance principles," as they will receive competency trainings in these areas.

Under the bill, the provincial, city or municipal government shall contribute to the CSF in an amount at least equal to the total contributions of the cooperatives. Moreover, all income of the CSFs shall be tax exempt as the stakeholders are mostly cooperatives that play a vital role in the attainment of economic development and social justice, Limkaichong pointed out.

Under the bill also, the BSP is directed to spearhead the promotion, encouragement, creation and organizational development of CSFs all over the country, pursuant to its mandate to provide policy direction in the areas of money, banking and credit under the New Central Bank Act.

Here is hoping that the bill is enacted soon. (END)

COOPERATIVES WHO OWN BUILDINGS AND RENT OUT COMMERCIAL SPACES CAN COMPLY WITH BIR REPORTORIAL REQUIREMENTS UP TO NOV. 2, 2011, PER BIR RR. 15-2011

2011-09-03T00:08:00.000-07:00

Among the other sources of income of many cooperatives is renting out the building they own, or spaces there to commercial businesses.

Earlier, the Bureau of Internal Revenue (BIR) has required them, along with other firms, under BIR Rev. Reg. No. 12-2011 to report some data and submit documents (i.e., copy of lease agreement, etc.) on these renters.

Under this Rev. Reg. 12-2011, the "first filing of tenants profiles as of July 31, 2011. All owners/sub-lessors are required to comply with these regulations by submitting the following documents on or before September 1, 2011.."

Last Sept. 2, 2011, BIR published on page 14 of Manila Bulletin, BIR Rev. Reg. No. 15-2011, entitled: " AMENDMENT TO SECTION 5 OF REVENUE REGULATIONS NO. 12-2011."

Under this amendment, the deadline of Sept. 1, 2011 provided under BIR Rev. Reg. No. 12-2011, was extended to Nov. 2, 2011.

We are reproducing below BIR Rev. Reg. No. 15-2011, as follows:
_________________________________________

REPUBLIC OF THE PHILIPPINES
Department of Finance
Bureau of Internal Revenue

August 26, 2011

SUBJECT: AMENDMENT TO SECTION 5 OF
REVENUE REGULATIONS NO. 12-20

TO : All Revenue Officials, Employees
and Others Concerned

Whereas, taxpayers covered under Revenue Regulations No. 12-2011, specifically mandated to comply with the requirements contained under Section 5 thereof, are requesting for an extension as they need more time to be able to comply thereto. Section 5 of Revenue Regulations No. 12-2011 is hereby amended to read as follow:

Section 5. Transitory Provision

This first filing of tenants profile will cover tenants as of July 31, 2011. All owners/sub-lessors are required to comply with these regulations by submitting the following documents on or before November 2, 2011:

xxx."

These Regulations shall take effect immediately following its publication in a newspaper of general circulation.

(SGD.) CESAR V. PURISIMA
Secretary of Finance
002979

Recommending Approval:

(SGD.) KIM S. JACINTO-HENARES
Commissioner of Internal Revenue
005397

_______________________________________

"ENHANCING PARTNERSHIP WITH THE CPAs TOWARDS A STRONGER COOPERATIVE MOVEMENT" - BY CDA CHAIR, DR. EMMANUEL M. SANTIAGUEL

2011-09-02T05:01:00.000-07:00

Socio-Economic Planning Sec. Cayetano W. Paderanga (center), receives a plaque of appreciation from the Phil. Institute of Certified Public Accountants (PICPA), when he keynoted the 'Cooperative Forum Today,' at Hotel Intercontinental Manila, Makati City, last July 22, 2011, part of the celebration of 'Accountancy Week.' Shown at left is Ms. Fe Diama Caingles of the Cooperative Development Authority.

Chairman, Dr. Emmanuel M. Santiaguel of the Cooperative Development Authority (CDA), seated, left; is flanked to his left by Economic Planning Sec. Cayetano W. Paderanga (by the microphone), together with other CDA and PICPA officers.

Cover of the power point presentation of CDA Chair, Dr. Emmanuel M. Santiaguel at the PICPA's 'Cooperative Forum Today.' (The whole presentation may be viewed at the Facebook site of Coops Phils)

PICPA officers present Dr. Emmanuel M. Santiaguel a plaque of appreciation, while CDA officer, Fe Diama Caingles (left) and other PICPA officers look on.

CDA Chair, Dr. Santiaguel (left), with Sec. Paderanga (middle) and PICPA officer. (END)

WHAT IF COOPERATIVES WERE INVOLVED IN THE IMPLEMENTATION OF THE GOVERNMENT'S CONDITIONAL CASH TRANSFER TO THE POOR ?

2011-08-30T15:44:00.000-07:00

Alright, we do not begrudge the income poor. They must be assisted by the government. And this is through the 'conditional cash transfer' program.

Being in that dire situation, they are being subsidized with cash, which no matter how nominal, it helps the poor tide themselves over. At the same time, it encourages them to keep their children in school; and to have regular health check-ups at the health center, among other things.

That is why it is a 'conditional cash transfer' (cct). The recipients, beneficiaries, partners - whatever- shall continue to receive the monthly amounts. This is provided that they do something more, as mentioned above. Because of this, some say this is not a pure dole-out.

Maybe the government -through the Dept. of Social Welfare and Development (DSWD) could also set additional 'conditions'. The beneficiaries could perhaps also be enticed or be exposed to livelihood opportunities; how to avail themselves of small loans; etc. This is where the cooperatives could help out.

For a nominal amount of P500, many cooperatives accept capital shares for membership. These cct beneficiaries could be encouraged to try becoming members of cooperatives. There are some 20,000 such cooperatives nationwide. Many are in the remotest areas of the country, where cct beneficiaries are.

For them, the membership fees may be waived. In addition, the cct beneficiaries receive a pre-membership seminar; get to hear of cooperative values, of joint responsibility; of entrepreneurship.

On the economic side, they also get back their capital share investment, when they take out a loan. They may even be given a special interest rate for their loans. Imagine, getting a loan 2X as much as your capital share in your first loan? That is what we call 'financial leveraging.' For a small amount of investment, you get a much bigger amount.

Some, hopefully get to be real entrepreneurs, even in a small way, at the start. If only some do become such, that will be a distinct improvement from the way the current cct program is administered.

This scheme could very well be the anti-dote to the reported incidents, where cct beneficiaries were 'pawning' or rediscounting their future cct receivables to '5-6' operators in the community.

Meaning, they get a 'loan' from these operators at less than what the cct beneficiaries could actually get in terms of what they receive every month.. And the collateral is the ATM card, which will be 'endorsed' to these '5-6' operators.

Some say old habits die hard. Or the cct beneficiaries cash flow needs are such that they have to avail of these '5-6' facilities to make ends meet, no matter how onerous the loan terms and interest rates.

So why not try the cooperative system for cct beneficiaries? In addition to values formation/re-orientation, the cct beneficiaries could microinsurance coverage on the side, which is made available by cooperatives to their members. And more.

So there. (END).

IF BANKS ARE SHY TO USE SOCIAL NETWORKS, HOW MUCH MORE ARE COOPERATIVES?

2011-08-28T03:33:00.000-07:00

I just came across a news report quoting, as follows: "Based on feedback, banks are still trying to get a feel on how to go into social media sites," says Allan Tumbaga, president of Bank Marketing Association of the Philippines.

According to said report, banks are wary and cautious of making use of such social networking sites, as Facebook, Twitter, or websites allegedly for fear of getting negative feedback, even bashing from the public, which could negatively affect their operation. Think of bank run and the like.

But one thing that still puzzles me is why cooperatives, who are not as sensitive to such concerns as bank runs arising from negative feedback, are not making use of Facebook, for example, to touch base with their members. Many cooperatives, admittedly are on Facebook.

But the number would not even reach 1,000 by my estimate. There are at least 18,000 duly registered cooperatives out there.

I think that there are much opportunities to gain, which could more than offset the fears, from engaging your members and the whole world online, such as Facebook, for example.

One is environmental scanning. Meaning, knowing what is going on out there, outside of your cooperative. Those online talk and share information on about anything, but more importantly much of their conversation is about their trade or business.

For cooperatives, seminars are advertised on Facebook; which training service providers are accredited by the Cooperative Development Authority; who are the accredited external auditor, etc. Any change or new rules affecting cooperatives, whether from the CDA, the Bangko Sentral ng Pilipinas (for cooperative banks, etc.),Bureau of Internal Revenue, DoLE, SSS, etc., are also talked about online.

Cooperatives can still make use of Facebook for their one-way information flow, if they are afraid of engaging their members in online conversation. Changes or new regulations, new programs of cooperatives can be relayed through Facebook. Negative comments can still be blocked. But then, again, one-way communication is no longer healthy.

Operationally, and technically, Facebook can even be used in aid of loan collection. For example, if all members (or at least those with loans) of your cooperative are members of your cooperative's Facebook site, how easy it would be to remind them of their deadlines for payment of loan amortization, with privacy assured. Just send the member a private message.

Formal notice on the calling of a General Assembly can be coursed through social networking sites. The reports that had to be sent to members can also be published online, even an Annual Report, Performance Report, or Social Performance Report. Thinks of savings in the traditional printing costs.

And how can you assure that your members would enlist in your cooperative's Facebook/social networking site? Why not require this as a requirement for the grant of a loan to a members? There are many more uses and benefits, that can be limited only by your cooperative's imagination.

Remember, most of your members are already on social networking sites, like Facebook. They are already engaging in conversation among themselves. What will prevent them from talking about or even bashing your cooperative? And since your cooperative is not part of this conversation, how would you know/monitor these and creatively respond? Better to join your members online!

How about it? (END)

ROLE OF FARMER'S COOPERATIVES, FARMER'S COOPERATIVE INSURANCE OR MBAs, COOP BANKS IN AGRI AGRA REFORM CREDIT ACT OF 2009

2011-08-26T01:36:00.000-07:00

At last, the Implementing Rules and Regulations of the Agri Agra Reform Credit Act of 2009 (R.A. 10000) were finally issued. The Bangko Sentral ng Pilipinas, Dept. of Agriculture (DA), and the Dept. of Agrarian Reform published their joint rules on this (pls. see PHIL. STAR, Aug. 24, 2011, pages 18 & 19. I suppose these rules are also on the websites of these agencies).

In short, what are covered by these rules? These concern the implementation of "an agriculture, fisheries and agrarian reform credit system to improve the productivity of the agriculture and fisheries sectors.."

This is particularly for the benefit of "the farmers, fisherfolk, agrarian reform beneficiaries, settlers, agricultural lessees, amortizing owners, farmworkers, fishworkers, owner-cultivators, compact farmers, farmers' and fisherfolks' cooperatives, organizations and associations, through government and private banking institutions.."

And from where will the source of funds for this credit system come from? The Agri Agra Reform Credit Act of 2009 mandates that "...banks shall set aside at least twenty-five percent of their total loanable funds for agriculture and agrarian reform credit in general, of which at least ten percent of the total loanable bunds shall be made available for agrarian reform beneficiaries.."

And what is the role of farmers' cooperatives; farmers' cooperative insurance or mutual benefit associations;cooperative banks, rural banks, etc. in all these?

They are among what is termed in the rules as comprising the "..accredited rural financial institutions...Their portfolios are substantially agri-agra related and have been certified as such either by the BSP, in case of banks; or by the Dept. of Agriculture (DA), or by an agency duly-authorized by the DA, in the case of of non-bank financial institutions..."

Among other things, these farmer's and fisherfolk's cooperatives are among the qualified borrowers for agriculture and agrarian reform credit (pls. see Sec. 3, x ).

Likewise, "..wholesale lending to accredited rural financial institutions for the exclusive purpose of on-lending to agrarian reform beneficiaries..." (see. Sec. 7, 2, b, ii ) constitutes compliance with lending requirements mandated of banks.

These cooperatives, and other rural financial institutions (RFIs), shall obtain prior accreditation. For this purpose, Sec. 9 of the implementing rules provide that "...The BSP and DA shall issue relevant circulars and regulations to govern the accreditation of bank and non-bank RFIs, respectively.."

So, let's check these out. Taking up the challenges, we can then avail ourselves of the opportunities under these rules. (END).

IS YOUR COOPERATIVE WITH EXCESS MONEY AND LOOKING FOR INVESTMENTS? WHY NOT INVEST IN 'NATIONAL COOPERATIVE MUTUAL FUND OF THE PHILIPPINES?'

2011-08-24T02:16:00.000-07:00

Our cooperative happens to be very liquid. The level of our cash on hand and in the bank is such that we have to find alternative investments. This is so that we can at least earn interests from these investments to break even with the interest costs we pay to the depositors.

This is the downside of earning the trust and confidence of your cooperative's members. They place their money in the cooperative in time and demand deposits. And if cannot lend it out, we need to place them in investments earning comparable rates as what we give to these deposits.

We were introduced to Mr. Ephraim L. De Guzman, a financial consultant of six years with the Philam Asset and Management Inc. (PAMI), which happens to manage the National Cooperative Mutual Fund of the Philippines (NCMFP).

The following is a gist of our interview:

Q: What is a mutual fund like the NCMFP?

A: A mutual fund company is an open-end investment company registered with the Securities and Exchange Commission, with at least P50 million in capital.

Q: Is investing in a mutual fund like NCMFP allowed among cooperatives?

A: The answer can be found in your cooperative's Bylaws as to what are the allowed investment outlets for your cooperative's funds. In all cooperatives I have met, investment in other cooperatives is allowed. NCMFP is a cooperative that operates a mutual fund.

Q: What is a mutual fund?

A: It is a collection of funds placed through a company (such as NCMFP), which in turn, employs investment professionals who would collectively invest the money coming from small and big investors, into such funds as government bonds, stock funds and/or what are called balanced funds. The aim is to make such funds earn more than the usual rate of return.

Q: What is the role of PAMI in the operation of NCMFP?

A: PAMI (the investment manager of NCMFP) is a trusted asset management company under Philamlife, and is one of the most successful companies in the industry now operating for more than 20 years.

PAMI was named in 2009 by Asia Investor Magazine's Investment Performance Awards as the Philippine's Best Onshore Fund House.

Q: Who are among the leading cooperatives in the country who have invested in the NCMFP?

A: Among these are FICCO of Cagayan de Oro; CLIMBS, Novadeci, Amkor-Anam; San Dionisio Credit Cooperative; United Sugar Cane Planter's of Davao; Peace Equity Foundation (an NGO); and Cebu CFI Community Cooperative.

Q: How are the earnings/rate of return from a mutual fund like?

A: For example, the rate of return of placements in NCMFP from June 3, 2010 to June 3, 2011 is 23.55%.

(Note: Ephraim L. De Guzman says he conducts briefings on how to invest in mutual funds, for the members of the Board of Directors/officers of interested cooperatives, upon request. He may be reached at tel. nos. (02) 423-6044, (02) 912-2160; cell nos. 09174734149, and 09491212774. Cooperatives Philippines is not in any way related to Mr. De Guzman or to his business transactions. (END).

HOW COOPERATIVES CAN BE ONE OF THE IDEAL VEHICLES IN ACHIEVING P-NOY'S PHIL. DEVELOPMENT PLAN 2011-2016

2011-08-22T01:54:00.000-07:00

In short, what are ideal goals of the the development blueprint of the country under the administration of Pres. Aquino? This blueprint is what is called the Philippine Development Plan 2011-2016.

One is that there should be growth. In fact, the Plan aims for a 7-8% economic growth rate during the period. Another is that the working poor and unemployed must participate in the development process. And most of all, they must share in the fruits of said development.

And what appears to be the problem, as seen by the people who crafted the Plan? Myrna Clara B. Asuncion, director of NEDA's planning and policy staff, was quoted as saying that the "...Plan recognized that the low level of domestic investment and (low level of) entrepreneurship was one of the reasons for the lack of opportunities in the country..."

And how can cooperatives be part of the solution to this problem? Cooperatives are great mobilizers of savings. These include the capital shares put up by the members, the savings and time deposits. These funds are loaned out to finance small businesses owned by the members.

By so doing, the small people pool their funds to finance the creation of more assets, to promote local entrepreneurship. They create jobs, derive income from such jobs and share in the fruits of their productive efforts.

There are at least some 7 million individual members of cooperatives and growing. The combined assets of cooperatives are estimated to be at least some P18o billion. The savings generated are as much. Some have estimated that the share of cooperatives to the country's Gross Domestic Product could be as much as 5%.

That is why, we can only agree with the avowed purpose of the Plan, to wit:

"...The government should pursue intensive promotion and industry development, as well as offer a more focused incentives package to stimulate the economy and allow all development partners an opportunity to take advantage of the gains from increased economic activities.."

The cooperative sector could not agree more. (END).

IS THE GENERAL MANAGER OF YOUR COOPERATIVE APPOINTED YEARLY/EVERY TWO YEARS BY THE BOARD OF DIRECTORS OF YOUR COOPERATIVE?

2011-08-20T03:05:00.000-07:00

For the longest time, our cooperative has not directly addressed the issue of defining the tenure of its General Manager.

At least, that is my personal impression. Our cooperative's By-laws, had enshrined the following provisions: "The Board of Directors shall appoint the members of the Management Staff, fix their compensation and tenure.." The General Manager is among the Management Staff.

Our cooperative's General Manager retired after 30 years of continued service. Not once was his appointment renewed. Does that mean that next General Manager should be treated also the same way -like a regular employee. Does than mean that the Board cannot appoint/re-appoint him, similar to any other appointive officer of the cooperative?

How does R.A. 9520 look at the tenure of the General Manager? This question popped in my mind, when the Cooperative Development Authority (CDA) issued its Memorandum Circular 2011-04, as supplemented by Memorandum Circular 2001-11 recently.

Notably under Memo Cir. 2011-11, the position of the General Manager was among those appointive positions. Such positions, in contrast to those positions elected by the General Assembly, include those that are appointed by the Board of Directors. Among these are the members of the Ethics Committee and of the Conciliation and Mediation Committee.

If these appointive positions have a tenure of say, two years, can the General Manager (being an appointive position) also be given a tenure of say, also two years? After which he could be re-appointed after such a two year term and so on, and on?

Has your cooperative experienced a similar situation/predicament? That is the case now with our cooperative. We are now in the process of choosing a new General Manager. Can the Board give him a term of two years, renewable at the pleasure of the Board?

If your cooperative is in a similar situation, how would you go about resolving this issue? One, maybe the opinion of the cooperative's legal counsel may be sought for guidance of the Board. In addition, the clarification on this matter may be sought from the Cooperative Development Authority.

Either way, good luck. Hope that we can resolve this soon. (END).

ONLY SOME 4,000 COOPERATIVES, OUT OF 18,000 WHO APPLIED HAD SO FAR BEEN ISSUED CERTIFICATES OF TAX EXEMPTION BY THE BUREAU OF INTERNAL REVENUE

2011-08-19T01:58:00.000-07:00

It seems like a sad commentary of our times. It has been more than two years now since the Cooperative Code of 2008 (R.A. 9520) took effect. And the Bureau of Internal Revenue (BIR) has so far granted only 4,000 Certificates of Tax Exemption (CTE) to 18,000 cooperatives who have applied for such CTEs.

And what could be the reason for a 22% rate of CTE issuance? BIR Commissioner Kim Henares was quoted in press reports as saying: "..the agency (BIR) has to be more discerning in granting tax exemptions to cooperatives..." saying further that "..some groups apply for such exemptions in the guise of a cooperative merely to evade paying the right taxes.."

I believe that this is unfair to the cooperatives and to the Cooperative Development Authority, which registers and supposedly supervises and regulates cooperatives in the country.

For one, CDA has imposed rigid regulations before a new cooperative may be registered. And more importantly, among the requirements of the BIR in the processing of applications for the issuance of CTE is the submission by the cooperative of a Certificate of Good Standing (CGS) issued by the CDA.

It goes without saying, that CDA imposes more regulations before it issues a CGS. Among other things, the cooperative must be compliant in its submission of statury reports, including annual performance reports; and financial reports duly audited by external auditors, who are not only licensed by the Board of Accountancy, the Professional Regulatory Commission but also accredited by the CDA.

If these 18,000 or so cooperatives who have applied for their CTE with BIR, have been issued their CGS by CDA, we strongly believe that the processing and issues of such CTEs is purely ministerial.

There is such a thing as presumption of regularity in the issuance of these CGS. This is specially so because CDA and BIR belongs to the same department -the Department of Finance.

Moreover, the cooperatives are not applying for tax exemption from the BIR per se. They have been exempted from paying taxes, by law, earlier under R.A. 6938 and just recently under R.A. 9520. The cooperatives need not prove each time they apply with BIR for CTE that they should be exempted from taxes. That had long been resolved by said laws.

What about the issue of 'tax erosion'? This means that the government could have collected more taxes, if these cooperatives were not tax exempt. Congress had decided, by enacting the tax exemption of cooperatives, that cooperatives could contribute more to the economy than they are taking away in the form of tax exemptions.

That is why many cooperatives believe that these are not the real reasons for the apparent delays in the issuance of their CTEs. (END)

4 NEW, ELECTION-RELATED CIRCULARS RECENTLY ISSUED BY THE COOPERATIVE DEVELOPMENT AUTHORITY THAT COOPERATIVES MUST KNOW

2011-08-16T03:06:00.000-07:00

It is the time of the year, when the Election Committees of cooperatives give their set of election rules a review, for updating, finalization and confirmation by the Board of Directors and for eventual implementation.

The usual election period starts sometime September, or there about, commencing with the filing of candidacies, securing the needed nominations, etc. until the candidates are elected, proclaimed and have their oaths of office taken, so they can discharge the functions of their office.

There are four such election-related Circulars issued by the Cooperative Development Authority this year (2011), the important provisions of which should be added by the Election Committees of cooperatives in their rules for 2012 elections. These are:

1). Memorandum Circular No. 2011-03, dated February 22, 2011, on the subject: "Policy Regarding Art. 27 (2) of R.A. 9520.

The dispositive portion of this Circular: "All elective officials of the Government shall be ineligible to become officers and directors of cooperatives....,except to a party list representative being an officer of the cooperative he or she represents..."

2). Memorandum Circular No. 2011-04, dated February 22, 2011 on the subject: Legal Interpretation of Art. 42 of R.A. 9520.

The dispositive portion: "...No two or more persons with relationship up to the third civil degree of consanguinity or affinity...shall serve as an appointive officer..."

"...Under Art. 42 of R.A. 9520, there is no prohibition for elected officers with relationship up to third civil degree of consanguinity or affinity to hold the aforesaid positions in the same cooperative provided they have been elected by the General Assembly..."

"...An elected officer can have one (1) appointed relative within the third civil degree of consanguinity or affinity..."

3). Memorandum Circular No. 2011-11. This supplements Memo. Cir. No. 2011-04, by adding the position of the General Manager among the list of appointive officers.

Hence, no appointive officer related within the third civil degree of consanguinity or affinity to the General Manager shall serve the cooperative, according to Memo Cir. No. 2011-11.

4). Memorandum Cir. No. 2011-18 on the subject: "Model Election Guidelines in the Conduct of Elections for the Board of Directors and Other Elective Officers of Electric Cooperatives Registered with the Cooperative Development Authority.

The Circular could serve as a template/pattern to consolidate all the election rules of the cooperative, not necessarily an electric cooperative. The format is great, but use only those applicable to your type cooperative and modify accordingly.

The Election Committee is advised to consult with the Board of Directors on the revision of the election rules. It would be embarrassing when, due to lack of consultations/coordinations, if the election rules or portions thereof are stricken out by the Board of Directors, if these are contrary to the cooperative's By-laws and to R.A. 9520. (END).

ISSUES & CONCERNS ON AUDIT OF COOPERATIVES; PICPA ACCOUNTANTS/AUDITORS-CDA COLLABORATION

2011-08-09T02:39:00.000-07:00

(In the final segment of the transcription of the speech of Chairman Emmanuel M. Santiaguel, Ph.D. of the Cooperative Development Authority, he addressed the issues on cooperative audit; raising the financial reporting standards for cooperatives and related concerns. Cooperatives Philippines hopes that the Chairman's speech would be meaningful and useful to cooperatives in the country.)
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PARTNERSHIP INITIATIVES WITH ACCOUNTANTS

".... This time, I would like to look at what are the partnership-initiatives taken by the Philippine Institute of Certified Public Accountants (and of CDA).

In 1981, we had a CDA-PICPA memorandum in the provision of free audit services for qualified cooperatives, with paid-up capital of not more P100,000 and gross revenue of not more P100,000.

And in 1993, we had CDA-PICPA-FINEX and the Land Bank of the Philippines memorandum of agreement for the provision of training packages and development of accounting manuals. This had been completed.

Then, on July 9, 2001, there is now a standard system and manual for cooperatives, as an audit guide for the external auditors of cooperatives. It became the generally-accepted auditing standards, principles and practices.

In 2008, there was this CDA-PICPA memorandum of agreement for the adoption of International Financial Reporting System and Internal Accounting Standards. So, global na tayo ngayon.

In 2010, there was the CDA-PICPA memorandum of agreement for training and for the purpose of accrediting Certified Public Accountants (CPAs). Mahirap ba ang accreditation? Bakit kakaunti ang nagpa-accredit?

Is accreditation expensive? Can you recoup the costs? What is the legal framework? Let's look at the legal basis? Under Article 53 of R.A. 9520, every cooperative needs to file within 12o days (from end of a cooperative's fiscal year) , to submit regular reports to CDA .

Under Sec. 3 of R.A. 6939, all cooperatives, federations and unions are required to submit to CDA audited financial statements. Ang tanong, within 120 days ba upon closing of the books, kaya ba ninyong i-audit ang 20,000 cooperatives? Yun ang problema.

There were suggestions before that instead of using calendar year, coops could adopt a fiscal year. Why did it not push through? Oh, because of R.A. 9520.

So, I think, we are on the right track na pakontiin natin ang mga coops. Pakontiin ang ang cooperatives, paramihin ang miyembro, para mas malaki ang (auditing) fees ninyo. Tama ba iyon? Kasi mas maraming miyembro, mas malaki ang kita ng cooperatives. May pambayad na sila (sa auditing services).

Under Art. 80 of R.A. 9520, the cooperative shall be subject to an annual financial performance and social audit. Financial audit ok. Pero paano ang social audit? But this is in the law. So, ginagawa pa iyong manual- instrument for social audit. Kaya waive muna tayo. So, that is another (source of ) fees. Ang that is another income for CPAs.

These guidelines for the accreditation of external auditors. How did you find it? Ok ba ang guidelines? Did you have any difficulties? After my (this) presentation, talk to me if we need to revise these accreditation guidelines.

So, let us see. Talaga bang nagko-comply ang CPAs at external auditors? Kasi you (are supposed) to disclose the adverse findings. Baka naman katulong kayo at very 'cooperative' kayo sa mga coops?

Disclosure is a must. Kasama iyan sa functions ninyo. Sa supervision and examination, makita rin na ang mga CPAs ay magko-comply. In that way, we can help the cooperatives. Kaysa naman itatago natin iyon. Magugulat tayong bigla, bumagsak din pala ang cooperative.

SOME ISSUES ON COOPERATIVE AUDIT

Now, let's talk on the issues and concerns on cooperative audit. On standards for charging of audit fees, I believe that charging of audit fees is based on the status of the cooperative to be audited. However, I would like to appeal that if the cooperative is new, let's give them consideration by charging them with a minimal fee - socialized.

On varied interpretation of standard chart of accounts, someone complained to me; when the Financial Statement was shown to me - up to this time, there is an auditor with still retained earnings provision.

Capacity of small cooperatives to adhere with certain audit standards and procedures. How do we address this problem? I suggest that you include in your findings and exceptions, one: that there are still a lot of cooperatives who have not hired regular accountants and bookkeepers.

Ilagay na ninyo agad na hindi pwede. If next time these cooperatives still did not hire them, you will say that you will just recommend for them to merge with other cooperatives.

On the unavailability of accredited CPAs, like I earlier presented, it is a call now for PICPA.

On the issue of come CPAs still having difficulties in complying with requirements for Board of Accountancy accreditation, is it because of the fees?

On the difficulty of small coops to pay audit fees, this is an appeal to PICPA.

REVISITING CDA-PICPA INITIATIVES

While the partnership in the early years brought success in the aspect of providing free professional services to small cooperatives, we have to revisit these initiatives and reflect on the strength of our success and pinpoint the weakness; and learn the lessons of our previous undertakings.

We must continue to explore ways and means of how we can assist our cooperatives to enable them to enhance their capacity to comply with the reportorial and administrative requirements and cope up with the emerging complexities of regulatory environment.

We must explore the the possibility of continuing mission of free audit services to small and poor cooperatives as part of our social responsibility. In like manner, the participation of CPAs in the social audit and performance audit is an avenue for opportunities for future collaboration and complementation.

To end my presentation, I would like to give you this quotation from Peter Drucker:

"Instead of seeing government as a partner we fear, I think we should see them as partner we welcome."

Let us all work together for the common good and that is for the good of our cooperatives. Kung walang kooperatiba, walang tayong iau-audit. Let us all work together for a stronger cooperative movement. (END)

GIVING CDA EFFECTIVE REGULATORY & DEVELOPMENTAL FUNCTIONS; RECOGNIZING OUTSTANDING COOPERATIVES, ETC.: CHAIR SANTIAGUEL EXPOUNDS ON HIS PLANS

2011-08-07T00:07:00.000-07:00

(This is the 3rd part of the transcription of the speech of DR. EMMANUEL M. SANTIAGUEL, Chairman of the Cooperative Development Authority. This could very well be the most comprehensive, candid and specific explanation of the plans on how to implement his 3-Point Program.)
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CLOTHING CDA WITH EFFECTIVE REGULATORY AND DEVELOPMENTAL FUNCTIONS

".... In the next two years, the construction of the Cooperative Training Center for CDA shall be initiated. Kailangan po namin talaga iyan. Magtatayo po kami ng Training Institute for cooperatives. This will not compete with other - with the business of federations and unions.

Unang-una ang kliyente nito, of course are the internal clients. Sino yon? These are the CDA personnel. And from time to time, meron kaming mga circulars or Implementing Rules and Regulations - that is the time for us to call the cooperative sector.

But never it na -oh, magtatayo ang CDA ng Training Institute, siguro makikipag-compete yan saan? Sa business ng federations and unions. That will never happen.

What is the expected outcome of this Human Resource Development program? We want CDA to have an efficient, effective and responsive government regulatory and development functions for cooperatives.

You know, kwento ko lang sa inyo, pag upo ko pa lang, pinatawag ako sa Kongreso. Clamor ng legislators natin, "Wala namang magagawa ang CDA, i-dissolve na iyan!" Ibigay na sa federations ang functions niyan!

Pero this time, nagpapasalamat naman ako because we have now a very good CDA Board of Administrators. Sabi ko sa ating mga CDA personnel, trabaho muna tayo. Doblehin natin. It's not for me. It's for CDA. Gusto nating i-build ang image ng CDA. That is for the cooperative sector.

COOPERATIVE AWARDS & RECOGNITION

The third of our agenda is about Awards and Recognition. Kaya po natin pinasok ito, dahil pag upo ko pa lamang diyan, bulungan na agad sa akin: "Mr. Chairman, ten years na po kami sa cooperatives; 20 years; 30 years; - - maggo-golden anniversary na kami, alam ninyo, wala pa kaming natatanggap na recognition.

Bakit? Kasi po ang award-giving body sa national scale ay ang Land Bank of the Philippines. Oh, bakit? Kasi, wala po kaming utang sa Land Bank...

Kaya noong kami ay magpunta sa Land Bank Gawad Pitak (Awards), nagbigay na kami ng excuse. Sabi ko, together with Sen. Migz Zubiri at Congressman Ping-ay, nag-excuse na kami. Ang sabi namin, mayroon na kaming bagong gagawin ngayon for the awards and recognition (of cooperatives). So, there will be a launching of the 'Gawad Parangal' -iyan po ang title - 'Gawad Parangal.'

Ang recognition of outstanding cooperatives, area-wide muna ito. It's a joint program between CDA and the Committees on Cooperatives of the Senate and the Lower House. So by 2012, nandiyan na po ang actual 'Gawad Parangal.'

Hindi lang po ganoon ka-simple itong sinasabi nating Awards and Recognition. Kasi dito, gusto natin na makuha ang mga models at ma-replicate, ma-showcase at isa pa, ma-target natin dito ang mga cooperative leaders at elders natin. Sila ang nagbibigay sa kanila ng inspiration. Lastly, iyong youth. Bakit youth? Para masabi naman nila: "Maganda naman pala ang coop. Mayroon pala tayong kinabukasan diyan!"

AWARDS AT 2012 NATIONAL COOPERATIVE SUMMIT

And therefor, 2012 iyan na. Maybe ang coverage period natin may be July (2011) up to June 30, 2012. Ibig sabihin, iyon yung basis for the search. This is a natgional award in 2012. Doon po tayo mat-start at ang awarding po natin ay October 20, 2012 during the the (2012) National Cooperative Summit.

Hindi lang po iyan. Siyempre, kailangang bigyan natin ng award ang mga local government units (LGUs), our partner- organizations; mga cooperative leaders; mga elders; outstanding LGUs or cooperative offices coming from LGUs; outstanding cooperative development officers; mga government agencies, with great contribution in cooperative development; iyong mga outstanding federations and unions; councils - lahat po iyan - kasama sa search.

3-POINT PROGRAM AS FRAMEWORK FOR AWARDS

How will we do it? Itong ating 3-Point agenda, ito po ang ating program framework. So, simple. The CDA will work hand-in-hand with and partner with the cooperatives, with the private sector, NGOs, whether local or foreign, with the LGUs; national government agencies; world financing institutions; state universities and colleges.

Why? Because CDA wants to have - to give, to serve efficient registration, effective regulation, equity-oriented development. What is the expected output? In terms of developmental, we want to increase the membership. In so doing, we will increase the volume of business.

Bakit po natin ikinakampanya ang increase in membership? Simple lang ang pananaw natin diyan. Kung 7 million ang membership (ng cooperatives) ngayon, doblehin natin ito into 14 million. Consequently, dadagdag ang assets, i-increase ang paid-up capital.

At pagkatapos, itong volume of business na ito will form part of our contribution to the Gross Domestic Product. Oh, di ba? Pwede na nating sabihin sa national government na ang cooperatives ganito ang tulong natin sa Gross Domestic Product.

As of this time, alam ba ninyo kung magkano lang (cooperatives' contribution to the GDP)? P1.4 trillion. Because we (cooperatives) have P150-billion (combined) assets. Sabi nila, malaki na ito, pero kung ilalagay mo ito sa pie chart, isang guhit lang ito, napakaliit. It is less than 5% of the total Gross Domestic Product.

So, pag dinoble natin ang mga miyembro, dadami rin ang magbi-business at lalaki ang contribution nation. At least, mararamdaman. Hindi na sa underground economy ang cooperative sector. Nasaan na? Kasali na (sa formal economy). So, iyon po ang purpose natin.

COOPERATIVES' SHARE IN GROSS DOMESTIC PRODUCT

At kapag ginagawa natin itong increase in membership, actually ang outcome nito hindi naman pupunta sa CDA. Saan mapupunta? Sa cooperatives. Bakit? Unang-una, ikinakampanya natin na magparami sila ng miyembro. Tataas ang kanilang paid-up capital. Tataas din ang kanilang ano? Yung kanilang contribution to the Gross Domestic .

At ano pa? Tataas din ang kanilang kita kung maayos ang kanilang management. Eh,siyempre naka-built in na iyon doon, di ba? Pag nagparami kayo ng miyembro, ayusin rin ninyo ang policies ninyo. Ayusin mo ang records mo. Kasi gusto po natin magkaroon ng financially stable, and socially-responsive cooperative enterprises.

Now, how? Of course, kailangan natin ng mechanism for partnership. So, ang mga mechanisms natin para tuloy-tuloy. Huwag kayong magtaka. Napakarami ngayong convergence, fora, tri-partite summits, conferences, mga consultations like these - like what we are doing now.

Kaya, ako po ay labis na nagpapasalamat sa PICPA, sapagka't kasama sa inyong celebration ang cooperative day, na ibinigay ninyo sa co-ops. Tama iyan. Kailangan din natin na magkaroon ng Memorandum of Understanding with partner-agencies, stakeholders.

Nandiyan young accreditation of external auditors. I will show you later kung ano ang status ng external auditors, kung gaano karami na.

For the mediators kaunti pa rin - 120. Alam ninyo, nang aking ipa-tingnan kung ano ba ang resulta ng mga seminars and training sa mediation? Maganda pala. Bakit? Yung kanilang mga ginagawa ay pinupuntahan ang mga delinquent cooperative members.

Example: Dito sa isang cooperative, mataas ang delinquency. Naso-solve, napagbabayad ang mga may-utang. So ang mediation ay hindi lamang sa nagkakagalit lamang. Yung mga ayaw magsipagbayad ng utang kasama yan. Dapat magamit na ito. E, di libre. Hindi laging legal means ang gagamitin. Masyadong magastos. Kaya pag nakita ang gastos, ayaw na tuloy magbayad ng coop. Ang mediation, maganda po ito.

(TO BE CONTINUED.....)

CHAIRMAN EMMANUEL M. SANTIAGUEL ON ACHIEVING CDA'S 3-POINT PROGRAM: INCREASE MEMBERS OF COOPERATIVES FROM 7-MILLION TO 20-MILLION BY 2013

2011-08-05T02:18:00.000-07:00

(Following is the second part of the transcription of the speech of Chairman Emmanuel M. Santiaguel, Ph.D, on the 3-Point Agenda of the Cooperative Development Authority (CDA). The speech was delivered on July 22, 2011 before PICPA's "Cooperative Forum Day." In this portion, Dr. Santiaguel talks of "mainstreaming" the membership into cooperatives of consumers-members of electric cooperatives, and of agricultural workers in the country, among other things.)
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"...Another strategy to mainstream membership is to undertake intensive campaigns informing the power consumers on the benefits of registering electric cooperatives with CDA.

So, a well-meaning and relevant information dissemination campaign among electric consumers will augur well towards a referendum for the registration of electric cooperatives with CDA. You know, there are really a lot of electric cooperatives, but they are not practicing (cooperativism). They are considered not as genuine cooperatives.

While this strategy will not only mainstream a great number of our population to the cooperative movement - about 10 million people I think are members of electric cooperatives, it will likewise rectify social laws that the control and ownership of electric cooperatives will finally be given to the hands of ultimate consumers.

The right of ownership which had been denied them all these years. While these cooperatives have been providing light, they have put all their members in the dark with regard to to their rights.

So, ako po ay tuwang-tuwa nang ako ay maimbitahan ni Congressman Payoyo sa General Assembly ng Palawan Electric Cooperative. Imagine, right there and then, during the General Assembly, namigay sila ng dividend sa mga miyembro. Imagine (dividends of) P60,000; P30,000, di ba? Pero ang ibang electric cooperatives wala niyan.

Another one is the convergence with the Department of Agrarian Reform (DAR) and the Department of Agriculture which will pave the way for the registration of farmers' organizations and agrarian reform beneficiaries.

Of course, it will again result to mainstreaming them in cooperatives. It will also usher in the promotion of sustainable agriculture , thereby ensuring the food security of our country.

That is the reason why in the previous convergence of federations and unions in Visayas and Mindanao we had this memorandum of agreement with the Department of Agrarian Reform.

Imagine ang laki ng budget ng DAR. Ang kanilang channel is through cooperatives. Pero nasaan na ang mga cooperatives na iyon? Kaya, bibigyan po natin ng focus iyan.

Together with agricultural cooperatives, we will be having this memorandum of agreement with them the soonest possible time. It will follow, of course because we really wanted to help the farmers.

Ang laki-laki rin ng budget ng Department of Agriculture, samantalang ang Cooperative Development Authority ay walang budget. Pero nasaan na ang mga agricultural cooperatives? Look at their status.

At the National Food Authority (NFA), well, they have this (rice ) importation program. Ang mga cooperatives natin dapat may chance makapag-import din through NFA, pero hindi nabibigyan ng chance, ng priority.

Based on the law, at least 25% ng lahat ng kanilang naa-award (for importation) dapat napupunta, bilang priority, sa mga agricultural cooperatives or to the farmers.

Pero, mga individual farmers lang ang naa-award-an sa bidding. Sayang naman. Sana mabigyan ng opportunity ang mga agricultural cooperatives. Ang reason nila, hindi raw competent enough. Siguro dapat nating i-audit - performance audit- para sila maging competent.

And then, the continuing identification of issues and policy advocacies shall be institutionalized. So nandiyan po ang advocacy natin. Una, look at the workers cooperatives. Baka matulad sa electric cooperatives, registered as coopertives pero hindi naman pala nagpa-practice na cooperatives. Sana tingnan din ninyo pag nag-a-audit kayo.

Look at the status of our transport cooperatives. Alam ninyo, isa ito sa mga kausap natin. Ang laki ng nawawala sa kanila. Sana you audit this. Yung kanilang collections malaki, pero hindi yata nare-record kung magkano ang napupunta sa kotong. Millions daw, samantalang ang kanilang net surplus, wala pang P100,000. It really is a tall order. Kailangang maalis ang kotong na ito. Para ang biyaya ay sa kooperatiba mapunta.

I have to talk on this, you know. Because when we get all the acts together, towards complementation of efforts, of resources, of talents and programs, it will bring synergy. Kaya, we have this convergence of strategies with local government units, federations and unions, cooperative councils and relevant national government agencies.

For the local government units, what is their role in cooperatives? And of course, it will cascade. We are pushing, advocating mandatory creation of local government development offices. We do believe that it will cascade local executive support towards cooperatives. Thereby, those marginalized sector and the grassroots will join the cooperative mainstream.

For the federation to be capacitated towards assisting the government/CDA in the areas of development and regulation, we are now in the process of drafting or crafting the accreditation guidelines for federations and unions in order for them to be deputized in the supervision and examination (of cooperatives).

(TO BE CONTINUED......)

Risk awareness is for everyone | The Manila Bulletin Newspaper Online

2011-08-03T21:24:00.000-07:00

Risk awareness is for everyone | The Manila Bulletin Newspaper Online

(Knowing the risks and preparing for such risks are also an important, even critical, concern among cooperatives. We hope that cooperatives will get some lessons from this article.

Risk management is a vital function and responsibility of top cooperative officers, beginning at the level of the Board of directors.)

CDA'S 3-POINT AGENDA: DEPUTIZING CO-OP FEDERATIONS; EMPOWERING NATIONAL CO-OP DEVT. COUNCILS; CDA TRAINING INSTITUTE FOR COOPERATIVES

2011-08-03T03:26:00.000-07:00

(This is the third part of CDA Chairman's speech on how to implement the 3-Point Agenda of the CDA.)
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DEPUTIZING COOPERATIVE FEDERATIONS

"... You know, when I was in Korea - they have the very famous NACUFOK, which is the only federation (of cooperatives) in South Korea. Ang problema naman sa ating bansa, ubod ang dami ng mga federations. Pero sa South Korea, iisa lang. So, what they are doing is that the federation itself is deputized by the government. Sila na mismo ang nagko-conduct ng supervision and examination.

Yung lahat ng hindi capable or hindi miyembro ng NACUFOK, ang nangyayari, it is the government that nag-supervise at nag-examine. So, this is part of empowerment. And we do believe na malaki ang maitutulong nito, in what way?

Imagine, in Korea, after the supervision and examination, simple lang ang gagawin ng federation, ng NACUFOK, kakausapin iyong cooperative. Do you know the status of your cooperative? Bagsak kayo sa CAR (capital adequacy ratio). Meron kayong malaking problema. Ano?

Dapat mag-"merge" na kayo with other cooperatives. It is being done by the federation. Dito sa atin, napakahirap gawin iyong merging and consolidation. I don't know, maybe because it is the values of the people. Pero sa kanila (South Korea), trabaho ng federation iyon.

A DIFFERENCE IN VALUES

See, malaki talaga. Nang ako ay pumunta roon (sa South Korea), ang unang nakita kong kaibahan are their values and attitudes. Disiplinado ang Koreano. Sa Pilipinas, hindi. Tingnan ninyo ang cooperatives natin: "Si kami; si cooperative namin; si ako; kami ang magaling. Kaya talo namin iyan."

Pero doon, hindi, talagang tulong-tulong. When I entered one cooperative there, young office nila daig pa ang bangko. Sa ganda, parang hotel. Pag-upo mo, while you are waiting, meron silang libreng massage seats. Relax na relax ang miyembro nila.

Tapos, yung mga senior citizens, ang pinupuntahan hindi yung pang-massage. Ang pinupuntahan ay iyong libreng pang-BP (blood pressure). This should be replicated here in the country.

So, ang mga bangko natin sa Pilipinas, hindi magawa iyon. Pero ang mga kooperatiba sa South Korea, they can offer such services. See the difference?

REDIRECTING THE COOPERATIVE DEVELOPMENT COUNCILS

And then, for the national government agencies to augment financial and technical services to cooperatives, nandiyan po ang National Cooperative Council.

Last week ay amin pong nai-form ito. By Executive Order 95, signed by then Pres. Fidel V. Ramos, ito ang mandate/authority for the creation of the cooperative development councils. Nakita namin na nagkamali ang focus ng National Cooperative Development Council. Kasi, dapat ang Council is more on policy formulation; to serve as a forum. Eh (instead), napunta more sa seminars and training.

Pag binasa mo ang Executive Order 95, ang dapat pala rito, ang Council, ang tatrabahuhin is to be a venue for all partner-agencies na magsama-sama. Then, lahat ng mga programa - programa ng DAR; programa ng Dept. of Agriculture on cooperatives development dapat may program coordination and complementation. Iyon ang ginawa namin. So, we revised the guidelines on National Cooperative Development Council.

Anyway, hanggang December 2011, binigyan namin sila ng time para sundin ito. By 2012, lahat compliant na lahat ng cooperative development councils on that. Ang mga national government agencies, marami, tulad ng Dept. of Trade and Industry.

We are talking of mainstreaming membership dapat ang cooperatives should focus more on giving of productive loans, not providential (loans). Iyan dapat ang makita ng mga kooperatiba.

MAKING COOPERATIVE MEMBERS REAL ENTREPRENEURS

As much as possible, let's make our members real entrepreneurs. Isang bagay po iyan. Alam ninyo, iyan ang aking justification sa Dept. of Finance , kay Sec. Purisima. Sabi ko sa kanya, kasi ang question niya sa akin:

"Chairman, ano ba ang magagawa ng Cooperative Development Authority para makapag-generate ng revenues?"

Napakamot ako sa ulo. Eh, alam mo ang sagot ko: "Sir Secretary, wala na tayong magagawa kasi we have this law. This is the Cooperative Code (R.A. 9520) wherein dito, the cooperatives are given tax tax exemption privileges. Eh, batas na po iyan. Wala na tayong magagawa.

Pero, Secretary (Purisima), huwag kayong mag-alala, ang cooperatives po ay gumagawa ng paraan para ang kanyang mga miyembro ay maging entrepreneurs. Kasi po nagpapautang ang mga cooperatives sa kanilang mga miyembro sa kanilang negosyo.

So, with that, kapag itong mga miyembro ay naging negosyante, nadoon po ang tax. Kaya iyan po ang isa sa susukatin natin. Doon sa ating mga primary cooperatives, kung ilan ba sa mga miyembro nila ang mga entrepreneurs.

Well, nakita rin natin ang volume of business na kontribusyon nila sa Gross Domestic Product. Eh, hindi ba sa atin galing iyan? Nangutang sila sa cooperatives. Yung kanilang capital, sa atin galing iyan, di ba? These should form part of the contributions of cooperatives.

HUMAN RESOURCE DEVELOPMENT

Our second agendum is Human Resource Development. We all know that an institution that does not develop its human capital is penalized by slow growth. Here, the CDA field personnel must be capacitated on their common interpretation of laws and regulations.

Starting this August (2011), there shall be a series of trainings for our CDS (Cooperative Development Specialists?) throughout the country. Kaya iyan po ang sabi ko kay Dir. Fe Caingles. Kaya ka namin inilagay diyan sa I.D.D., iyan ang bigyan ninyo ng focus.

When I was in the cooperative sector, iyan po ang common thinking sa CDA. Ano iyon? Pag nagtanong ka sa isang CDS, heto ang sagot. To another CDA, iba ang sagot. Pag nagtanong ka sa (CDA) Regional Director, lalong iba ang sagot. So, why? What's the reason? Ang root cause: walang budget ang CDA for capacity-building of their people.

Iyan ang dahilan. Di ko masisi. Ang sabi ko, talagang problema. Di ba sa BSP (Bangko Sentral ng Pilipinas), they have this Training Institute? Ang examiners nila, periodically (they train). Oh, there is this new law, ordinances, etc. How will you interpret them? Sa kanila (BSP), they have a common interpretation. Iyan po ang gagawin natin starting August.

(TO BE CONTINUED.....)

DR. EMMANUEL M. SANTIAGUEL SPELLS HIS 3-POINT AGENDA , AS THE FLAGSHIP PROGRAM OF THE COOPERATIVE DEVELOPMENT AUTHORITY UP TO 2013

2011-07-31T00:45:00.000-07:00

(I have not had the opportunity to really hear the new Chairman of the Cooperative Development Authority (CDA) speak. The very first time I saw him was sometime in mid-January of 2011. This was during the launch of the CDA-BIR-Senate Cooperative Tax Forum at the Amoranto Sports Stadium, Quezon City. He came in fresh after having been sworn in by Pres. P-Noy. I did not hear him speak that time. But then, again, I left before the forum ended.

Last July 22, I had the opportunity to attend the "Cooperative Forum Today," of the Philippine Institute of Certified Public Accountant's one-day event. I just listened and taped the speeches of Sec. Cayetano Paderanga and of CDA chairman Emmanuel M. Santiaguel. After which, I quietly left. I did not even partake of the food.

The two-part posting of the speech of Sec. Paderanga was earlier done in this blog. The following is a series (because of space considerations and the speech of Dr. Santiaguel being a little bit long, but very substantive and informative for cooperative stakeholders) consisting of the excerpts of the speech. I hope that not much is lost in "transcription". So here is the first part of the speech of the CDA Chairman).
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".... In the light of the recent developments on programs and activities, the Cooperative Development Authority (CDA) needs a lot of partners in order to obtain a strong cooperative movement in the country.

... CDA needs to enhance partnership with the cooperative external auditors - -the CPAs (certified public accountants), and of course with PICPA (Philippine Institute of Certified Public Accountants), as an institution.

When I assumed office as the new Chairman of the CDA, we crafted the 3-point priority agenda and is called as the Agency's Flagship Program - the cornerstone of our activities.

We make it a point to incorporate in all fora or forums where any CDA officer, even CDA staffer like a CDS - when we are invited as guest to drumbeat to public consciousness the importance of the implementation of such agenda in the realization of the aspirations of the cooperative sector.

And this is the very reason why I accepted your invitation. So, I implore upon all our partners and cooperative development stakeholders, of course PICPA included, to make the 3-point agenda as our guideposts in all our undertakings to make our effort truly meaningful and long-lasting.

The 3-point agenda are as follows:

1) Mainstreaming membership in cooperatives. That is membership expansion with the goal fo hitting 20 million Filipinos by year 2013, as members of cooperatives.

Maybe, you might ask why I mentioned 2013. This is because that is the end of my term (with CDA). Of course, I want to see whether we are productive enough for this agenda.

2) Human Resource Development. And that is through establishment of support systems and structures for cooperative development. (We aim to do this) specifically through capability building in all levels of cooperative organizations in order to meet the training requirements of internal and external clients.

Of course, the internal clients are the CDA people - - CDA officers and staff. The external clients, these are the cooperative development partners and stakeholders.

3) The third is Awards and Incentives for cooperative partners and recognition of exemplary performance, best practices and good governance.

You know, we call it priority agenda, primarily because we do not intend to set aside the projects and activities initiated by our agency, which include the program of accreditation of CPAs, as cooperative external auditors.

The projects and activities in the previous years shall be continued, including total human development. We should not neglect 'planet development' or environmental protection. Of course, everybody will agree with these.

And with that, we have to attain prosperity. That is the real intent of organizing the cooperatives.

As a case strategy for mainstreaming a greater number of the population to become members of cooperatives, a strategy towards tapping existing, strong and stable cooperatives. Of course, they are strong and stable. They have established systems and proven track records to expand their reach through branching.

As much as possible, registration of new cooperatives will be contained only under tolerable level. What else? Aside from expansion by branching, of course, we will be able to meet the agenda of our President (Aquino), that is, generation of employment.

If we are able to tap some 1,000 strong cooperatives to have their branch, even if 1 branch each only throughout the country and for a minimum of 3 employees per branch, that will be a generation of 3,000 (additional) jobs.

(TO BE CONTINUED.....)

COOPERATIVES, AS MOBILIZER OF SAVINGS, CREATING JOBS AND SPREADING WEALTH, WILL BE STRENGTHENED UNDER P-NOY'S PHILIPPINE DEVELOPMENT PLAN 2011-2016

2011-07-29T01:30:00.000-07:00

(Following is the second /last part of the excerpts transcribed from the keynote speech delivered by Economic Planning Sec. Cayetano W. Paderanga during the PICPA's "Cooperative Forum Day," held last July 22, 2011 at Hotel Intercontinental, Makati City.)
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"... In the Philippine Development Plan 2011-2016, we recognized the role of cooperatives in development.

The vision of the Plan is to achieve what we term as "inclusive growth" and this is, I think, the mantra of Pres. Aquino, where the benefits of growth are shared by all Filipinos.

In this respect, cooperatives form an important mechanism to help ensure that inclusiveness of economic growth. In fact, one of the strategies of the Plan is to mobilize local savings and to employ these resources to meet the needs of development.

We recognize the value of cooperatives despite it not being part of the formal financial sector in the mobilization of savings. By their very structures and principles, cooperatives promote the habit of savings and good financial practices among their members.

In themselves, cooperatives are highly, client-responsive development-oriented organizations, that nurture and promote savings at source, all for the benefit of their members and their families.

We propose to strengthen cooperative development in most endeavors as a means of creating jobs and spreading wealth. And I think that there are ideas that are being spawned in the National Cooperative Movement. There must also be others in some cooperative groups on how we can harness this power in order to keep more people to benefit from development.

Among the programs pushed in the Philippine Development Plan, involving cooperatives, is the promotion of the use of alternative financial channels of credit and financing where innovative products and services are used in underserved and unserved areas of the country.

Credit, multi-purpose and rural-banking cooperatives form a sizeable number in the cooperative sector and lead in providing alternative financial products and services to their members. These meet the providential needs of members such as the financing of education plans, health maintenance and even life insurance.

Another equally important financial product comprises the so-called productive loans that are meant to provide the necessary seed capital to enable the member-beneficiaries start and sustain productive micro-businesses. Through this type of financing service, cooperatives participate actively in the expanding of small business activities at the grassroots and at the same time create jobs.

While there are government and private financing institutions, mainly development and rural banks that provide microfinance services. Their effectiveness can be blunted by factors such as limited reach and various stringent documentary requirements.

Microfinance, and I would like to distinguish microfinance and cooperatives. The distinction can be quite important. Microfinance, as a service of the formal financial sectors, differs from the productive loans offered by the cooperatives, in the sense that the cooperatives serve their members only.

Microfinance services are open to anyone, who meets the basic qualification set by lending institutions. And there are many microfinance institutions that are actually for profit.

While initiatives to promote microfinance have been in place as early as 1997 with the introduction of the National Strategy for microfinance, cooperatives have been enlisted in the implementation of credit and guaranty programs particularly among their members.

The government's concern is to further broaden and enhance the delivery of microfinance services for the poor such as credit delivery, capital investment in microfinancing institutions and capability-building. While credit cooperatives and cooperative rural banks have taken up the lead role in providing providential and productive financing services, this role needs to be expanded.

Another program proposed by the Plan is the creation of an environment for efficient operation of cooperatives in the Philippines following the enactment of the Cooperative Code of the Philippines on February 17, 2009.

Of course, cooperatives have been involved in grassroots development and financial inclusion in the past several decades, there has been noticeable lack of effective legal framework and supervisory oversight.

This problem has led to the fragmentation of development efforts and a poor database on the actual performance and contribution of the cooperative sector. And maybe here, PICPA can help.

Today, the cooperative movement in the Philippines is into endeavors usually associated with business, credit services on housing, consumer goods, agriculture, tourism services, electricity, distribution and services; and even into education.

In this context, the Plan proposes the strengthening of the regulatory functions by the Cooperative Development Authority, particularly in setting the parameters of regulations for transparent participation and decision making in governance and operation of cooperatives.

Cooperatives represent a very feasible and sustainable means through which an inclusive development is achieved. Please be assured that the present government recognizes the importance in cooperativism particularly its role in promoting the pooling of resources for the welfare of all.

And I am very happy to be here to give you this message. Again, thank you for this opportunity to speak to you about something that is close to my heart - - accounting and cooperatives." (END).