Monday, April 21, 2014


   There are reasons compelling enough why there is need to amend R.A. 6939, the Charter of the Cooperative Development Authority (CDA).

  Cooperatives leaders, stakeholders and policy makers/legislators have cited the following key provisions of such amendment:

  1.  Granting CDA the sole power to register cooperatives;
  2.  Provide supervision and jurisdiction over all types of cooperatives registered with CDA;
  3.  Empower CDA to issue appropriate regulations regarding the supervision and inspection of cooperatives;
  4.  Direct the CDA to cancel or revoke the certificate of registration of cooperatives not compliant with the provisions of R.A. 9520;
  5.  Provide a consultative mechanism in order for the coop sector to participate on matters of planning and execution of government projects and programs;
  6.  Enhance the mediation, conciliation, and settlement process on inter/intra cooperative disputes as provided in RA 9520 and RA 9285;
  7.  Provide for the organization and re-organization of the CDA key positions
  8.  Institutionalizing the dissemination of coop principles and practices and their integration in the formal and non-formal education


Part-time vs. Full-Time
Administrators, Chairman

I.  Why Full-time Board of Administrators (based on the CDA Unofficial Position Paper):

      1. Full-time Board of Administrators provides a cycle of continuous inflow of ideas.

       2.  CDA has both developmental and regulatory functions and will do close monitoring of these functions.

       3.  BOA has to ensure its oversight functions.

       4.  Part-time Board of Administrators cannot be made accountable to the decisions.

       5.  There is need for a full-time Board of Administrators since there is an expansion of the role of the agency.
II.  Why Part-time Board of Administrators (Based on the Consolidated Bills, Consultations/Position Papers from the Coop Sector and Government Agencies).

      1.  No-issue.  Ideas come also from the staff or consultations from the coop sector.  The BoA may tap Resource Persons/Experts to formulate or refine policies, rules.

       2.  Development and regulatory functions are mainly line functions.  The board does not do the monitoring everyday, it is done by line officers and the results of which will be reported to the BOA as basis for decision making/policy.

       3.  The role of the BoA is to formulate policies according to studies, proposals and feedback during policy implementation.  Such policies are not made everyday, week or month. \

       They are not expected to go to different areas and check the implementation since real oversight functions are done by the regional officers and those at the central office.

       4.  Whether part-time or full-time, it does not diminish the accountability of the decisions made by the Administrators.

       5.  It is affirmed that the role of the agency is expanded, but not that of the board's.  It is the rank-and-file who will have expanded functions or tasks, hence we need more people on the ground.  

       The Administrator's functions continue to be policy making.

II:  Cooperatives in Education System (Based on the CDA Unofficial Position Paper):

       1.  CDA proposes to create a system of education and training for cooperatives and re-define the use of CETF (Cooperative Education and Training Fund).

Based on Consolidated Bills, etc.:

       1.  CDA to tap the expertise of private schools or state universities and colleges, coop federations and unions in having  a coop education system.

        Coops development and administration may be offerred as a baccalaureate, post-baccalaureate or as masteral courses including provision of equivalency credit and accreditation of work experiences and non-formal education and training of coop leaders, managers, and members.

       The future usage and policies of CETF is best left to the cooperatives.

III.  On Cooperatives in Agriculture and Rural Development (Based on CDA Unofficial Position Paper):

        1.  CDA proposes for the promotion and development of agricultural cooperatives, in coordination with the Dept. of Agriculture, and Dept. of Agrarian Reform, shall be a primary concern of the Authority to ensure food security and reduce rural poverty.

         Based on Consolidated Bills, Consultations, etc.:

         Agriculture is still a recognized sub-sector for cooperatives, hence, its inclusion in R.A. 9520, as other types of coops, such as producers, marketing, agrarian reform, dairy, or multi-purpose coops, however, is not needed to be articulated in the proposed revised charter.

IV.  On The Requirements of Tax Exemption

       (Based on CDA Unofficial Position Paper):

        1.  CDA proposes the Certificate of Registration (CoR) as sufficient document of tax exemption privilege for small coops.  For large coops, CDA proposes to require Certificate of Compliance with reportorial requirements, aside from the CoR.

        (Based on Consolidated Bills, Consultations, etc.):

        1.  The Certificate of Registration issued by the Authority to a duly-registered cooperative shall ipso facto constitute as the sole basis of the full enjoyment of the tax exemptions granted under Articles 60 and 61 of R.A. 9520.

V.  On Savings from the Part-time Board of Administrators

      (Based on Consolidated Bills, Consultations, etc.):

       1.  The savings if Administrators will serve part-time, roughly P15 million, can be used to pay the salaries of 40-45 Cooperative Development Specialists (CDS) nationwide or 2-3 CDS per region.

VI.  On termination and retirement of CDA rank-and-file.

        1.  Only the BoA, Executive Director and Deputy Executive Directors will be affected by the proposed reorganization. However, they will be protected by Civil Service policies.

VII.  On why only the six Administrators will serve as part-time, while the Chairman will be on full-time basis.

       1.  Civil Service regulations provide that as Chairperson, he should be the Head of Office.  As such, he needs to serve full-time.  Being appointed by the President with a rank of Undersecretary, the Chairperson wields political power that would be helpful to the sector.

Note:  What is you stand on these issues?  Pls. feel free to send in your comments (END). 




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