CDA Board of Administrators Holds Dialogue with Bangkoop Officers

The CDA Board of Administrators holds dialogue with BANGKOOP Officers on April 10, 2013 at CDA Conference Room, Immaculate Concepcion, Aurora Blvd., Quezon City. BANGKOOP is headed by their Chairman Rufino C. Hernandez. CDA officers are in full force with Chairman Emmanuel M. Santiaguel, Administrators Nelon Alindogan, Mercedes D. Castillo and Eulogio T. Castillo supported by Directors Fe D. Caingles, Eleonor T. Hernandez and Nonie I. Hernandez. This is in response to the appeal of BANGKOOP for the deferment of implementation of Article 144 of Republic Act 9520 and Memorandum Circular No. 2012-06 on the Cancellation of Cooperatives as it applies to primary cooperative members of cooperative banks.

Accordingly, the said implementation of the provision of the law and Memorandum Circular No. 2012-06 has immensely affected cooperative banks stockholdings as stated in their pleading that the legal personality of the stockholders and authority of representatives will be put in serious doubt and thus affect the public confidence in their banks. The intention of BANGKOOP is not to circumvent the provision of the law but to give more time to cooperative banks to cleanse and strengthen its own ranks by implementing rehabilitation plans to resuscitate the supposedly affected banks. BANGKOOP officers appeal to CDA management for the interpretation and implementation of the provision of the law should be for the good cause of the cooperatives and people at the countryside.

In due consideration of our moral obligation to protect the interest of cooperatives including the farmer members who contributed to the organization, the CDA Board of Administrators in its regular meeting held on April 11, 2013 deliberated the matter and came up with a resolution accepting the proposal pertaining thereto, subject to the following conditions:

  1. BANGKOOP to conduct inventory of membership and identify those who are active, not operating and those that can be rehabilitated. The list of cooperative members to be submitted to CDA shall serve as basis for Board decision and issuance of Order;
  2. Reactivation of the Technical Working Group on Cooperative Banks composed of representatives from BANGKOOP, CDA, BSP, PDIC and LBP to look into the problems of cooperative banks such as the structure, government policies (local and international) and its implications to cooperative banks.–By: Corazon Diwas