CDA RO VIII Facilitates Virtual Execom, Members Meeeting of Finance Co-ops Regional
On August 18, 2021, the CDA Regional
Office VIII fruitfully
meeting of thex
largest among the
Finance Cluster. This
activity was held via
Zoom platform and
was participated by
cooperatives, as well
as some of our CDA
Officials from the
Head and Regional
The new Regional Director of the CDA Region Office VIII, Mr. Giovanni T. Platero commenced
the activity through his positive and warm welcoming message. As his first
attendance to the meeting of the Finance Cooperative Cluster, he
acknowledged ASEC. Vidal D. Villanueva, III for his constant guidance to the
cooperatives in the region. He also shared some updates on the innovations
in the office as part of the mechanisms in institutionalizing electronic
government services. Likewise, he emphasized that the social media platform
is now an important tool in helping cooperatives as they engage themselves in
providing the Authority with the information useful in addressing their needs
as well as in the crafting of corresponding policies and programs for the
benefit of the cooperatives.
He continued to give updates on the concerns in the Finance Cooperatives
Cluster which the activity sought to elevate to the top policy makers based on
the needs of the cooperatives. Likewise, it was a venue for gathering
concerns from the cooperatives being the consultative and coordinating body
on matters affecting the cluster.
CDA Assistant Secretary Vidal D. Villanueva III, the overall Head of the
Finance Cluster expressed his gratitude towards the ExeCom and Member
Cooperatives for the levitation of their issues and concerns. He reported to the
cooperatives on the progress of those issues and concerns raised during the
first meeting of the organized RCO Finance Cooperatives Cluster, as
discussed with the CDA Board of Directors, mainly:
1. Policy on the Definite Training Requirement for each Category of the
Cooperatives (Micro, Small, Medium and Large)
-Recommendations will be consulted from cooperative leaders all over the
country and shall be collated for a harmonized policy on this matter.
2. Policy for Coop Officers Handling Positions in Multiple Cooperatives.
-As the efforts of some cooperative leaders and officers who handle many
primary/secondary/tertiary cooperatives are appreciated by the CDA, a
recommendation to limit it to three (3) to five (5) cooperatives is subject for
scrutiny of all cooperative leaders. This is recommended to ensure soundness
and efficiency in the functioning of the cooperatives.
3. Making the Koop Kapatid Program More Effective and Efficient
– Knowing that there is a prohibition of our existing laws and circulars on
primary cooperatives investing in other primary cooperatives as part of the
Koop Kapatid Program, this matter is being studied now. The Legal team shall
finish the process of getting recommendations from the cooperative leaders.
4. For Cooperative Deposit Insurance System
-The CDA Board has discussed this and the Legal Team has been studying it
as well as presenting on this matter. The Congress suggested it might as well
come up with an Amendment to the Philippine Deposit Insurance Corporation
(PDIC) law, thereby incorporating cooperatives as part of the coverage of the
5. Possibility of Coming up with a Cooperative Stabilization Fund
-This fund shall not compete with the other stabilization funds of federations,
but to recognize the need and to see to it that the cooperatives could still
survive and remain stable despite trying times like the current pandemic.
Recommendations from the cooperative leaders on how we can make a
process for the cooperative stabilization fund to assure the cooperatives’
stability shall be studied.
6. Suspension on the Imposition of Penalties for the Late Submission of
Reportorial Requirements of Cooperatives Due to Pandemic
-Guidelines for the extension of the deadline for the submission of the
reportorial Requirements with the CDA until October 15, 2021 without penalty
will be disseminated soon.
7. Conversion of the Unused Cooperative Education and Training Fund
(CETF) to Community Development Fund (CDF)
– The intention of this representation is to enable cooperatives to assist the
Cooperative Members as well the Community. The Cooperative Board of
Directors will have the discretion to come up with internal policy on how they
will convert their accumulated CETF to CDF.
8.-9. Resolution Requesting Provincial Cooperative Development Council
(PCDC) as well as City Cooperative Council (CDC) to Allow the RCO’s
Participation in their Regular Meetings and Special Meetings
-The rationale behind this is for our RCO Representatives per Province to also
get updates from the cooperative development councils in their respective
provinces and cities. Likewise, for the cooperatives’ issues and concerns to
be ventilated to the PCDC and CDC.
10. Resolution for the Financial Institutions to Lower Down the Interest
Rate of our Cooperatives’ Loans during this time of COVID Crisis
-This is to appeal before LBP, DBP and other Government Financial Institutions
to have their interest rates lowered down so as not to be that oppressive for
the cooperatives who availed loans from them.
11. Resolution Requesting the Legal Team to Study the Policy if we can
have Standard of Interest Rates / Ceiling Interest Rate to the Loans and
Services of the Cooperatives
-This is not totally prescribing how much is the interest rate, but establishing the
ceiling or the minimum and maximum rate that the cooperative will impose to
the loans and services that they extend to their members.
12. How to Address the Difficulty of Getting Tax Identification Number
(TIN) Number of each Cooperative Member as a Requisite for the
Cooperative’s Certificate of Tax Exemption (CTE)
– The CDA has submitted its position paper/Legal opinion on this matter and
asked assistance from the ARTA. Consequently, ARTA promised to direct
and assist the Bureau of Internal Revenue (BIR) so that our cooperative
members will no longer experience difficulty in securing their TIN and
consequently the cooperative’s CTE.
ASEC. Vidal D. Villanueva III thanked the RCO Finance Cooperatives
Cluster’s recommendations and concerns raised as these will certainly help
the CDA Board of Directors produce sound policy recommendations that
come up with a viable direction for the entire cooperative sector. It only proves
the strength that we get from organizing RCOs and having consultations with
its officials and member cooperatives. He further affirmed his commitment to
work hand in hand with the RCO 8 Finance Cooperatives Cluster.
Ms. Luz H. Yringco, the
RCO 8 Finance
President, expressed her
joy and appreciation as she
perceives that the CDA
indeed listens. According to her, concerns were acted
upon promptly, and those
aired by the cooperatives during the previous meetings were heard. As a result, all the meetings became productive. Likewise, the cooperative sector will have a lot of work to do in partnership with the CDA.
Other concerns raised during this meeting were (a) Coming up with a strategy
to speed up processing of vehicle loan applications such as complying with
the requirements of the banks, and the Fleet Management Training which the
Transport cooperatives are required to undergo. They are hoping that this
training will be available here in Region 8 as it is usually conducted in Manila;
(b) Lowering down the interest rate, with consideration on balancing it with the
new Memorandum Circular on Performance Audit Report (PAR) as financial
ratios are ought to be sustained; (c) Gradual implementation of performance
assessment with capacity building on Stability, Turn-Over Ratio, Efficiency,
Profitability, and Structure of Assets (STEPS) as there is a need to look into
its adaptability in times of pandemic; and, (d) Reducing requirements in
transforming into Multipurpose Cooperative as cooperatives find preparation
of feasibility a challenge. Dir. Platero assured to help the cooperatives’
concern starting with coming up with a template for the feasibility study that
they can use. Further, Ms. Jornales affirmed that the Field Offices as well as
the Region VIII Office is always open to assist the cooperatives. Conclusively,
negotiations and assessments will be conducted by the CDA to help for these
concerns to be addressed and to give ease to cooperatives.
The activity was concluded with a message from Mr. Nelson D. Bernardo,
Vice-President of RCO 8 Finance Cooperatives’ Cluster expressing
appreciation, recognition and support to the Finance Cluster Head, CDA Head
Office and Region Eight (8) Officials as well as to the Finance Cooperatives’
Cluster whose dynamic participation made the meeting effective, constructive,