Saturday, December 21, 2013


Earlier in our blog post ("CDA bats for more charter powers over cooperatives"), we wrote about the position paper of the Cooperative Development Authority (CDA), expressing its desire to be given more corporate powers in the proposed charter amendments of R.A. 6939,  now being considered by legislators.

Said CDA position paper, we assume,  was occasioned by the December 4, 2013 meeting of the House Committee on Cooperative Development, chaired by COOP-NATCCO Partylist Rep. Cresente Paez, where the Committee had voted to delete some of the proposed powers of CDA.

Subject of the Committee deliberations is the Substitute Bill to HBs 276, 463, 493, 1219. 2391 & 2665, entitled:  "Reorganizing the Cooperative Development Authority, repealing for the purpose R.A. 6939, otherwise known as the CDA charter.

The principal authors of these are Reps. Paez, Guanlao, Biazon, Rodriguez (R.), Garcia (G.), & Arroyo (D).

In this regard, and more context, I am quoting from the minutes/records of the said meeting of the House Committee on Cooperative Development:

"...On the recommendation of Rep. Gwendolyn Garcia (3rd District, Cebu City), the Committee agreed to delete the following powers and functions of the CDA, as proposed in Section 4 (Subsections m-q) of the substitute bill:

Hear, decide and settle disputes between and among members, officers and directors of cooperatives, and between and among cooperatives in accordance with Article 137 of the Philippine Cooperative Code of 2008;

Mediate, conciliate and/or arbitrate disputes between cooperatives, upon request of either or both parties, provided that the cooperative presents to the Authority (CDA) a certificate of non-resolution from the federation or union to which said cooperative is affiliated.

Issue subpoenas and summon witnesses to appear in any proceedings of the Authority and, in appropriate cases, order the examination of all documents, papers, files and records of any cooperative or person under investigation as may be necessary, for the proper disposition of cases before it.

Punish for contempt any witnesses before it who disobeys any order of the Authority or refuses to be sworn in or to testify or to answer a proper question of the Authority or any member of its Board of Directors, or testifying, testifies falsely or evasively, and

Implement and enforce its decision with the assistance of deputized law enforcement agencies or the local government unit concerned as may be necessary.

Rep. Garcia explained that granting these powers to the CDA is inconsistent with its role under Article 137 of RA 9520 or the Philippine Cooperative Code of 2008.

The said provision states that the disputes between and among members, officers and directors of cooperatives or between and among cooperatives shall be settled amicably in accordance with conciliation or mediation mechanisms embodied in the bylaws of cooperatives.

Only when such conciliation or mediation proceedings fails that it can be submitted to the CDA for voluntary arbitration.

The CDA, Department of Budget and Management, Department of Finance and Bangko Sentral ng Pilipinas were requested to submit to the Committee position papers on the substitute bill. 

So, there.  Whether the Committee will relent on/reconsider  its position and accede to the contrary position of the CDA,  we will soon find out.  

Your comments are welcome.  (END).

No comments:

Related Posts with Thumbnails