Sunday, December 15, 2013
CDA BATS FOR MORE CHARTER POWERS OVER COOPERATIVES
The Cooperative Development Authority (CDA) has made known its wish to be granted more powers over cooperatives.
The proposed powers are contained in a position paper recently uploaded in the CDA website (www.cda.gov.ph).
TO R.A. 6939
Apparently, the position paper was issued in reaction to various bills filed at the Philippine House of Representatives and the Senate, aimed at amending its over two-dacade old charter (R.A. 6939).
Among these desired powers are: 1). Clothing CDA with quasi-judicial powers to strengthen its authority over cooperatives.
The paper observed that currently, ".. CDA has limited quasi-judicial powers, in relation to its administrative functions of registration, cancellation, dissolution and other related incidents, but not on intra-cooperative disputes..."
CDA wants that it current functions be clearly spelled out in the amended/new CDA charter as being in exercise of the quasi-judicial powers of the agency.
USE FUNDS, ETC.
It also wants a provision on the authority of CDA to use funds, investments, and earnings thereof, of all programs and projects under PD 175 and LOI 23, that were transferred to CDA for the development functions of for cooperatives, particularly for cooperatives which are classified as micro and small cooperatives.
CONSTITUTION OF CDA
Also, CDA proposes to amend the constitution of its governing body, to include one each member of the Board of Administrators to come from the major islands of Luzon, Visayas and Mindanao.
In addition, one member each of the Board shall come from major clusters of cooperatives, i.e., agricultural sector; finance cluster; utilities and services cluster; and academic cluster.
USE OF CETF
Regarding the cooperative education system, the CDA is amenable to to the provision where CDA shall create a system of education, training and research for cooperatives.
In this regard, CDA proposes to re-define the use of Cooperative Education and Training Fund (CETF), in the creation of the said system of education, training and research for cooperatives.
On the issue of requirements for tax exemption of cooperatives, CDA also proposes that for micro and small cooperatives, the Certificate of Registration (CoR) is sufficient requirement. This is because the assets of these cooperatives are so small that the net surplus they can generate is also too small to warrant further scrutiny, the paper said.
However, for large cooperatives, additional requirements on top of the CoR may be required such as certificate of compliance with reportorial requirements in order to avail of the tax privilege.
How about you? What do you think of these? Your comments are welcome. (END).