Sunday, October 14, 2012

THE SAD "STATE OF THE PHIL. COOPERATIVE SECTOR" BARED AT 11TH SUMMIT





The cup is half-full.  But there are definite gains.  

This is my take on the "State of Cooperatives Address" (SOCA) delivered by Dr. Emmanuel M. Santiaguel, Chairman of the Cooperative Development Authority last Oct. 11, 2012 during the 11th National Cooperative Summit at Cagayan de Oro City.

I am not an apologist of the CDA.  Having experienced once being part of the government machinery, I can say  these gains were born out of valiant efforts, squeezed from limited resources, etc.

In his SOCA, Dr. Santiaguel said so, himself:  "..the task is herculean. The challenges are insurmountable.  The roads we will be traversing ahead are rough.  And we have a steep climb..."

View the entire address, posted as the latest (2nd entry?) in the Chairman's Corner of the CDA Website:  www.cda.gov.ph/website/html/news_2012_10_SOCA_2012.html

Some would definitely say it's half-empty.  Anyway, here are some of the gains:

10-M FROM 7-M CO-OP MEMBERS

 As of Sept. 30, 2012, there are now 10 million members of cooperatives in the Philippines, up from 7 million when Chairman Santiaguel assumed office in Jan. 2011.

Some 1.7-million was added in 2011; and 1.763-million in 2012, as of Sept. 30, 2012.

The downside, according to Dr. Santiaguel is that the target for 2012 is an additional 5.7-million new co-op members.  He had been announcing that his target by end 2013 is a total of 20-million members.


20, 133 COOPERATIVES REGISTERED


Official tally of registered cooperatives is now at 20,133.  The rate of increase in the number of cooperatives significantly dropped compared to previous years, says Santiaguel. 

Is he referring to the fact that the number of cooperatives (including inactive ones) prior to R.A. 9520, is from 50,000 to 70,000? Are the new ones listed from the "reconstituted" cooperatives who failed to register under R.A. 9520?  Just asking.


 VOLUME OF CO-OP BUSINESS DOWN


The cooperative sector generated P160.9-billion in business  this year, down from P280.8-billion last 2011, by some 42%.


'MOST CO-OPS PRONE TO
FINANCIAL DIFFICULTIES'


 Majority (76%) of cooperatives have assets of not more than P3-million.  They are considered prone to financial difficulties and have little or no capacity to expand and meet the demands of their clintele, says CDA.

Some 16.6% belongs to Small Scale; 6.74% to Medium Scale; and 1.62% comprises some 334 cooperatives are Large Scale cooperatives.


MOST COOPERATIVES
ARE MULTIPURPOSE 


Of total number of cooperatives, 65% consists of Multipurpose; 11.23% engaged in Credit  and lending; 5%, belongs to Service and Producers each; 4.96% comprises of Consumers; 3.59% into Marketing; and the rest, represents less than 1% of the total.


'40% OF CO-OPS DON'T SUBMIT
COMPLIANCE REPORTS'


CDA said that from  20, 133 registered cooperatives, it received only 11, 944 CAPRs; only 11, 692 cooperatives submitted Audited Financial Statements .

(What are the implications of these?  So many cooperatives will be fined by CDA?  How can these non-compliant cooperatives get BIR Certificate of Tax Exemptions?  How could they be issued CGS by CDA?)

As of Sept. 2012, only 5, 191  amended Articles of Cooperation and By-Laws  were approved by CDA g out of 8, 023 a received.  Some 12, 649 cooperatives  did not comply with this requirement.

These are some of the gains/losses.  A lot more are still "works in progress" or still part of the "wish list."

Could this be part of the reason why Pres. Benigno Simeon "Noynoy" Aquino III did not address the 11th National Cooperative Summit  like he did last Summit in 2010?  On Oct. 11, 2012, P-Noy addressed the Consumer Month Celebration.

Cooperators and stakeholders in the cooperative movement, does that  tell us anything?  Just asking.  So, there.  (END).




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