Pursuant to Special Order No. 2021-129, s.2021 dated May 20, 2021, the Cooperative Development Authority-Cebu Extension Office conducted an examination of I Phil Savings and Credit Cooperative with Registration No. 9520-1070000000038814 dated August 24, 2017. The examination focused on certain areas of concern, one of which was on the business operation of the cooperative.
During the examination, it has come to our attention that I Phil Savings and Credit Cooperative is engaged in investment-taking activities with expectation of generating a high yield of income or profit and multi-level marketing activities or networking activities with members recruited outside its area of operation, which is Region VII. The cooperative also accepts savings/time deposits from members without any written policies or records to support its current operation.
However, under its Articles of Cooperation and By-laws, investment-taking and networking activities are not stipulated as purposes for which the cooperative was organized, making those ventures not in accordance with the law. Further, the recruitment of members beyond its area of operation and acceptance of such savings/time deposits from members are not in accordance with Republic Act No. 9520 and its Articles of Cooperation and By-laws.
Thus, the cooperative is hereby ORDERED TO CEASE AND DESIST from undertaking investment-taking and networking activities, recruiting members beyond its area of operation, and accepting savings/time deposits from members without written policies and records to support its current operation.
Failure to comply the Order shall constrain this Office to take appropriate action in accordance with applicable laws and regulations.