First Inspection: Baguio City Credit Surety Fund (CSF) Cooperative

BEGINNING.  Baguio City CSF Cooperative Board members and officers attentively listened to the authorized team of inspectors during the exit conference.

Baguio City – Deferred for two years due to travel restrictions brought about by the pandemic, the inspection of CSF cooperatives commenced this third quarter of 2022. On September 6, 2022, the Inspection and Examination Division conducted the first inspection for CSF cooperatives through the Baguio City Credit Surety Fund Cooperative (BCCSFC).

The activity was conducted as a mechanism to directly pursue the Authority’s mission of ensuring the safe and sound operation of the CSF Cooperatives pursuant to Memorandum Circular 2022-17. BCCSFC has 12 cooperatives, LGU of Baguio City, 1 NGO, 2 government financial institutions (LBP and DBP), and the Philippine Guarantee Corporation as its members, and is still in the process of expansion by recruiting new members.

On the first day of the two-day inspection proper, the authorized team of inspectors checked the CSF Cooperative documents listed in the Notice of Inspection sent two weeks before the conduct of the activity to see if they complied with the provisions of RA 10744, its Implementing Rules and Regulations (IRR), and other relevant issuances released by the Authority. During the activity, the officers also opened up to the inspectors about the issues and challenges that the cooperative is facing in their operation, and the latter gave recommendations that the officers may adapt and implement. The Inspectors also welcomed suggestions, feedback, and criticisms from the CSF Cooperative officers and management staff regarding the said law and its IRR.

On the second day, present during the clarificatory conference were BCCSFC Chairperson Angelita B. Gayados, Directors Mia Benetta G. Retuya and Bernard D. Briones, Treasurer Christian Israel B. Codangos, Secretary Roma M. Gonzales, Audit Committee Chairperson Jocelyn L. Mariano, CDA personnel Josie L. Villaver, John Erick R. Zepeda, Christine L. Bulalin, and Priscilla T. Bejar. Some of the concerns raised were the borrowings of members, conditions on the admission of new members, documents needed to prepare by each committee and management staff, as well as the internal policies of the CSF cooperative. Upon discussion, the BCCSFC officers acknowledged the findings and observations presented by the inspectors and are willing to comply within the prescribed period to satisfy and comply with the provisions of the law.

RECEPTIVE. The authorized team of inspectors with the BCCSFC officers and the management staff were all smiles after the discussion in the clarificatory conference.