Wednesday, November 27, 2013

WHAT'S NEXT AFTER CDA CANCELS 33,981++ COOPERATIVES?




In one fell swoop, the Cooperative Development Authority (CDA) recently ordered the dropping from rolls of some 33,981 cooperatives, more or less.

So, they were bereft of their Certificates of Registration, and they don't have authority to operate.  Many of these were no longer operating anyway, before the Cooperative Code of 2008 took effectThey failed to re-register under R.A. 9520.  Some were registered under R.A. 9520, but were ordered cancelled due to various reasons.  After due process, says the CDA.

What now are to options left for these cooperatives?  Can they re-apply again, maybe after complying with some imperatives?  Or will they be now relegated to oblivion?  Whatever.  The nagging questions to the ordinary folks is what happens to the savings deposits (demand, time, other special deposits)?

Who will now preside to make sure that millions of cooperative members get their unencumbered deposits, or those not used as loan collaterals.  Forget about the share capital.  For all purposes, these cancelled cooperatives are losing entities and the share capital - the extent of a member's liability to the cooperative is gone.

What about cooperatives who were cancelled, or were losing due to the possible fraud that might have been committed by some officers and management people of these cooperatives?  Who will run after them? What are CDA's obligations, if any, in this regard?

For example, our cooperative had placed some P100,000 in time deposit to one of these cancelled cooperatives in our area.  We filed a case. We won. But we were not able to enforce the court ruling.  The cooperative's officers and management people are no where to be found. There were no identifiable assets to attach, etc.

Multiply these cases and you will find the gravity of the situation. Assuming that each cooperative has an average of 100 members, some 3,398,100 members would be involved.  What of the assets (physical assets, land, building) and loan receivables of these cooperatives?  What about the creditors of these cooperatives?

Would there be formal procedures for these cancelled cooperatives to follow following what appears to be an involuntary dissolution?  

What preventive measures and regulations can the cooperative sector expect from the CDA to prevent the same massive cancellations and apparent failure of cooperatives? 

I have yet to hear any reactions from the local cooperative sector.  There were no congressional hearings on this? So many questions.  So many explanations that need to be given.  But who will give them?  What about you, what is your reaction to all of these?

(END).

No comments:

Related Posts with Thumbnails