Friday, August 19, 2016
CDA MUST VET CO-OPS FOR CIC
Yes, the Cooperative Development Authority (CDA), must exercise its power, as regulator of cooperatives, by certifying whether a cooperative is "capable to comply" with the credit data submission task mandated under the Credit System Information Act (R.A. 9510).
This is more so now that the Credit Information Corporation (CIC) clarified in its Letter Circular No. 2016-02, s. 2016 (which CIC issued on August 16, 2016 in its FB site and shared by many), how a cooperative (or other "Submitting Entities") may be temporarily exempted.
One option is for the cooperative to file a petition with CIC, to be exempted in the meantime by citing valid reasons. But this should be self-serving but not necessarily less preferred mode. Q5/A5 of the Frequently-Asked Questions, also mentions another option.
CIC states that "unless otherwise advised by the Submitting Entities' regulatory body (CDA, for cooperatives) on a per institution basis.." a cooperative/Submitting Entity is assumed as capable to comply. And if it did not, shall be subject to penalties.
This third-party vetting/certification should work fine. First, a cooperative needs only request CDA. CDA has records of the status of IT capability of these cooperatives, based on CDA's annual inspection of these cooperatives and based on the reports submitted by the cooperatives yearly, to CDA. Plus, these medium and large cooperatives, initially covered by CISA/CIC, number around only 3,000 more or less?
Better still, CDA could transmit en masse the list of covered cooperatives to CIC, who are IT-capable to deliver the credit data packages CIC requires. This would serve the purpose fine without creating much ado, consistent with the "change-has-come" scenario of the administration of Pres. Rodrigo R. Duterte.
CDA envisions itself as the champion that protects the safety and sustainability of cooperatives. Now, CIC has given CDA the opportunity to be just that for cooperatives. Thank you CIC !! (END).