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Following is the list of awardees in the 1999 CDA Search for Most Outstanding Primary Cooperatives by categories.

CREDIT COOPERATIVES CATEGORY

1. Philex Employees Credit Coop.
Padcal, Tuba, Benguet
Most Outstanding Credit Coop

2. Parish of the Holy Cross Credit Coop. 
General T. de Leon, Valenzuela City
1st Runner-up

3. Xavier University Community Credit Cooperative
Cagayan de Oro City
2nd Runner-up for Institutional Type Category

4. Lopez Quezon Credit Cooperative
Lopez, Quezon
2nd Runner-up for Community Type Category

1. Fatima (Vigan) Multi-Purpose Coop.
Bantay, Ilocos Sur
Most Outstanding MPC Non-Agri

2. DA Region 2 Multi-Purpose Coop.
Tuguegarao, Cagayan
1st Runner-up

3. San Lorenzo Multi-Purpose Coop.
Balagtas, Bulacan
Plaque of Recognition

1. Soro-Soro Ibaba Development Coop.
Soro-Soro Ibaba, Batangas City
Most Outstanding MPC-Agricultural

2. Galimuyod Multi-Purpose Coop.
Galimuyod, Ilocos Sur
1st Runner-up

3. San Pablo Multi-Purpose Coop.
San Pablo, Malolos, Bulacan
2nd Runner-up

            1. Dapco Agrarian Reform Beneficiary Cooperative  
            Panabo, Davao del Norte
            Most Outstanding

            1. Del Monte Philippines, Inc. Consumers Cooperative
            Bugo, Cagayan de Oro City
            Most Outstanding

            2. Isabela State University Consumers Cooperative
            Echague, Isabela
            1st Runner-up

Awarding ceremonies were held at the Coral Ballroom of the Holiday Inn, Manila late last year and attended by CDA Administrators and Regional Directors who accompanied representatives of awardee-cooperatives. (R.D. Soriano, CDA-C.O.)

The Registration Division (RD) has recently referred to the Legal Division (LD) the dissolution of registered tertiary cooperatives found violating the laws particularly the Cooperative Code of the Philippines.

The recommendation to dissolve the said cooperatives was based on the inspection conducted in the year 1999. The visitorial and inspection of cooperatives are periodic activities of CDA whose primary purpose is to determine the actual operation and administrative compliance of registered cooperatives. Cooperative banks and electric cooperatives are scheduled for inspection within the first quarter of this year since the inspection of tertiary cooperatives last year was not completed due to budgetary constraints.

The CDA is mandated to promote the growth and viability of cooperatives as instruments for empowering the people in order to improve the social and economic status of their members. However, it has likewise the concomitant duty to enforce the law to all cooperatives. If such cooperatives were found to have violated the law, they will be dissolved accordingly and eventually de-listed from the registry of cooperatives.

Among the common violations that were noted during the inspection are the failure to comply with the minimum membership requirement and failure to submit Annual Report (AR) and Audited Financial Statement (AFS) as prescribed in Articles 6 and 54 respectively of the Cooperative Code.

The tertiary cooperatives recommended for dissolution as a result of the said inspection are hereunder published for the information of all cooperatives concerned: Central Finance Development Cooperative, Cooperative Foundation of the Philippines, Cooperative Trade International Philippines, Federation of Agri-Based Cooperative of the Philippines, Federation of Share Cooperative of the Philippines, Federation of VFP Sons and Daughters Multi-Purpose Cooperative, National Confederation of Cooperatives, Philippine Cooperative Services, and Philippine Marketing Network of Cooperatives

The long-standing conceptualized Cooperative Computer Bookkeeping Service has come into reality during the Conference-Workshop on Centralized Computer Bookkeeping Service last January 6-8,2000 at the Consolacion Seminar House, Ponce St., Davao City.

The activity was attended by the pilot cooperatives in BanayBanay, Davao Oriental as identified by the congressional office in 2nd District of then Congresswoman Thelma Z. Almario. There were 16 cooperatives represented namely DOSEPCO, BAFASHCO, PIFISHCO, BADEMCO, BAFARCO, AICODO, PCFARMCO, CFC, BAHISTECO, BAMECO, MAPUMULCO, SAFARMCO, BAWMUPCO, MIBABAMCO and CAFARCO, with the participation of the MCDO and PCU. A total of 24 cooperative leaders, bookkeepers and encoders participated in the workshop.

It can be recalled, that this was conceptualized due to the recurrence of the cooperatives’ failure to comply with the administrative requirements under RA 6938 and RA 6939 to submit their Annual Report and Audited Financial Statements. This, according to some CPA’s, is due to the topsy-turvy recording of accounts in the books of small cooperatives. If materialized, the Authority, as well as the cooperative organizations will be assured of updated financial statements, an alternative solution to the cooperatives’ inability to employ the services of a professional bookkeeper. In support of this, key actors of the program have entered into a MOA and MOU in order to pursue said agenda in 1991 and 1999, respectively.

The major content of the workshop was the discussion of the system, and hands-on computer exercises for the participants facilitated by the designer of the program, Dr. Hospicio "Boy" Conanan. The participants enjoyed working directly with the system with four computer units being installed during the exercises. The expectations of the participants were met as they were given enough time to learn and interact during discussions in the three-day workshop.

Several revisions were considered as the facilitators came to interact with the present operation of the cooperatives. The Center, which will be installed in due time after updating the program, has already gained the support of the Municipal Mayor of Banaybanay, Honorable Pedro Mejos. After its completion, other municipalities will then have the opportunity to be benefited by the system. (Ma. Thelma B. Dave, CDA-DEO)

Three cooperatives from Central Luzon, two from Nueva Ecija and one from Tarlac, were the recipients of Gawad Pitak (Gawad Para sa Pinakatanging Koooperatiba) given by the Land Bank of the Philippines held annually.

San Agustin Primary Multi-Purpose Cooperative (SAPRIMCO) of Jaen, Nueva Ecija led the awardees from Region III, the other two being the CLSU Credit Cooperative of Muñoz, Nueva Ecija and San Jose Multi-Purpose Cooperative of Tarlac City, Tarlac.

SAPRIMCO was adjudged third placer in Agri-based Cooperative category won by Lamut Grassroots Savings and Development Cooperative of Lamut, Ifugao.

The cooperative from Jaen, Nueva Ecija brought home P300,000.00 worth of office equipment and a Plaque of Recognition as third place winner in the category. It was also named Kooperatibang may Pinakamalaking Kita (Cooperative with the Highest Income) and Pinakamahusay sa Pagbabayad ng Obligasyon (Best Cooperative in Repayment of Obligation) resulting in an additional P50,000.00 worth of prizes.

Central Luzon State University Credit Cooperative was honored with the distinction as Kooperatibang Pinakamahusay sa Pagpapalago ng Puhunan (Best Cooperative in Capital Build-Up) under the Non-Agri-based category, while Tarlac City’s San Jose Multi-Purpose Cooperative was accorded the honor of Kooperatibang Pinakamahusay sa 5-25-70 Countryside Partnership Scheme.

Both cooperatives were awarded with P25,000.00 in office equipment each and Plaque of Recognition each in winning their respective title of distinction. (Victor C. Suarez, CDA-PEO)

Background

Started in 1902 as a sanitarium with a 15-bed capacity, the present Baguio General Hospital and Medical Center has undergone various changes as to structure and location. It has continuously expanded the number of its personnel to match its services.

The hospital’s name has been changed as many as five times. The addition of the words "and Medical Center" entitles the hospital to bigger fund allocations. The hospital which has been existing close to a century, has been served by no less than twelve directors.

Today, the hospital has a 400-bed capacity. One of the three government hospital medical centers North of Manila, the hospital caters to the needs of the Cordillera Region including some portions of Regions I and II. Annually, the hospital accepts thousands of in-patients and hundreds of thousands of out-patients.

A year after the recorded coolest temperature in Baguio City, the consumers cooperative of then Baguio General Hospital (BGH) was born in 1962. Its name, as officially registered with the government, was "BGH Employees Consumers Cooperative Store, Inc."

During its inception, an employee by the name of Dr. Hector T. Lopez (then a Senior Resident of Surgery of BGH) initiated the organization of the consumers cooperative. His idea was brought about by his readings on the subject of cooperatives. He got so interested that when the Ministry of Health (now Department of Health) invited government employees to attend a cooperative seminar held in Manila, Dr. Lopez was requested and he immediately accepted the offer. With his accumulated knowledge on cooperatives, he, together with his co-organizers who were doctors and other senior staff, constantly imbued the idea of cooperation to his co-employees until they finally decided to establish their pioneer consumers cooperative.

Dr. Lopez regularly conducted the cooperative education seminars formally and informally. The latter during breaktime or lunch time, on the street, on the hospital’s lobby, or anywhere that can provide a friendly atmosphere for learning.

The cooperative started its operation in 1962 by opening a canteen with a built-in grocery store at the former basement of the Out-Patient Department, now the Emergency Room of the hospital. It began with two full-time employees: the manager and a helper. Aside from the hospital’s employees from utility to the chief, clientele included patients visitors, nursing students, outside workers and others who would want to avail of the services of the cooperative.

An advantage of institutional cooperatives organized among government employees is that the government supports cooperatives by providing them, where available, space for their office, canteen, stockroom, grocery store and the like for free. In fact the coop was later transferred to the Family Planning Clinic when the hospital required additional space.

The cooperative had an initial membership of 145 employees (irrespective of employment status) with a beginning capital (members’ contribution) of P 4,750.00. Today, the cooperative accepts only members who are regular employees of the hospital.

In the ‘90’s, the consumers cooperative’s name was amended to BGH and Medical Center Employees Multi-Purpose Cooperative (MPC). It maintained its two full-time employees. This time, a cashier and a helper.

Aside from receiving annual patronage refund and interest on share capital, the members are provided with a mini grocery store where members are privileged to buy goods on credit. Besides, prizes are awarded during their annual general assembly to members who garnered the 10 highest purchases on groceries. Coupons, serving as raffle tickets, are also given to members who patronize the grocery store. These coupons give them a chance to win various prizes.

On the other hand, the members, while helping themselves, are constantly and quietly saving for their future. They will have something to get upon retirement as a benefit of their cooperative membership.

Success and Failure

In its first years, the cooperative was gainfully operating as more employees were beginning to appreciate coop membership because of the services, benefits and privileges they enjoy. Thus, they did not only patronize the services of the cooperative but also promoted them. Another factor that contributed to their continued success was the presence of capable leaders who managed the cooperative with honesty and integrity. However, true to starting organizations, the cooperative had its failures, its growing up pains.

Per record, the cooperative had hired the services of at least three managers. Of these, two of the managers negatively affected the operations of the cooperative resulting in a net loss. However, their services were immediately terminated before the situation got worse. Meanwhile, the other manager resigned.

One probable reason for this is that managers, not being employees of the hospital therefore ineligible to become members, did not share in the common bond of interest of the cooperative members. Their lack of understanding on how cooperative really operates and benefits its members complicated the situation. Hence, the management of the cooperative became the Board’s concern. A management committee was constituted. In addition, the management of the canteen was placed under concession. Thus, the mini grocery was left as the sole activity of the cooperative.

To their advantage, however, those experiences taught the officers of the cooperative to become better leaders, managers and entrepreneurs. With the members of the board serving as a management committee, the management of the mini-grocery became more efficient than before. Because of that, the cooperative was able to regain its profitable operation.

At the moment the Board is not keen on hiring a manager. Maybe until such time when the board has come up with a responsive policy for the hiring of a manager.

In 1997, the consumers cooperative was included as one of the beneficiaries of the countrywide development fund (CDF) of Sen. Juan M. Flavier. The fund has been used to construct a separate building (a few feet away from the present consumer store) to house the mini grocery, canteen and space for their office. This was thought of because of the increasing demand by the members. The members’ equity is the maintenance of the building.

At present, the building is estimated to be fifty percent complete. However, the construction of the building was temporarily halted due to some reasons.

The Cooperative Development Authority (CDA), established in 1990, continuously recognizes cooperatives with exemplary contributions to their members as well as to the community by giving plaques/cash awards during its annual cooperative month celebration.

In 1995, the CDA-Cordillera Extension Office (CDA-CEO), after proper screening and thorough evaluation of the documents submitted by the BGH and Medical Center Employees MPC followed by personal visits and interviews, the cooperative was adjudged as the MOST OUTSTANDING COOPERATIVE twice at the city level and at the regional level.

Now, the consumers cooperative belongs to the elite of millionaire cooperatives.

From its original share capital of P 4,750.00 in 1962, the cooperative has been able to increase this to P 1,335,974.00 in 1997. From the 1996 share capital of P 887,668.00, it increased to P 1,335,974.00 in 1997 or about 150.5%.

The total share capital of the cooperative steadily increases with the continued monthly contribution of members through salary deduction.

Their total assets, in 1997 showed an increase of 129.58% over that of 1996. Their liabilities for the same period increased by 120.96%.

The net surplus decreased in 1997 compared to that in 1996 by P 143,339.00 or 53.25%. The decrease in net surplus is due to the increase in the administrative and operational expenses of about 195% in 1997.

Total members increased to 308 in 1997 as compared to 286 in 1996 or an increase of 107.69%.

On the average in 1962, each member contributed P 32.75 in share capital. In 1996 and 1997, the averages were P 3,103.75 and P 4,337.55, respectively.

After each fiscal year, every member is averagely receiving, in terms of patronage refund and interest on share capital, the amount, of P 941.05 in 1996 and P 465.40 in 1997.

The Cooperative Development Authority is an agency under the Office of the President. It was created through RA 6939, dated March 10, 1990 to promote the viability and growth of cooperatives as instruments of equity, social justice, and sustainable economic development. It pursues its mandate of cooperative promotion through the delivery of efficient and effective services on regulation, adjudication and developmental initiatives. Moreover it contributes to the capability build-up of cooperatives toward productive endeavors, the maintenance of sustained ecological balance, and the preservation and development of our cooperatives through the provisions of professional, entrepreneurial and educational services.

Most of the CDA’s powers and functions are concentrated on its developmental nature, making the CDA a perfect instrument for promoting growth which will ultimately redound to the economic and social betterment of the coop members.

The Estrada Administration is committed to raise the standard of living of the people. To achieve this, it has embarked on a nationwide poverty alleviation program called "LINGAP PARA SA MAHIHIRAP PROGRAM" (LPSP). The 1999 General Appropriations Act provided P2.5 Billion for the Program of which CDA has an allocation of P500 Million for Livelihood Development. The program has targetted 100 poorest families in each province or city.

For its part, CDA has chosen cooperatives as the channel/mechanism for LPSP. It has tapped the federations, unions, cooperatives to reach the target beneficiaries and involve them in a program to free them from the clutches of poverty.

The strategy in implementing the LPSP in the identified area is characterized by participatory livelihood development and management. This entails the direct involvement in the social preparation, planning, project identification, monitoring and evaluation. LPMP fund functions as a means in successfully undertaking the specific livelihood projects that the beneficiaries will identify.

As such, the LPMP fund is utilized either as initial capital for start-up livelihood activities or additional capital for those already engaged in viable livelihood undertakings. The fund can be allocated and distributed in tranches to the identified conduit-cooperatives and non-affiliate partners in the form of micro credit.

The first tranche of the LPMP has been sub-alloted to the CDA Extension Offices for release to the conduit coops down to the beneficiaries.

Livelihood projects which could be undertaken for this purpose include among others:

1. Handicraft making

2. Waste product recycling

3. Artificial plants and flowers

4. Rag making

5. Hollow blocks making

6. Cattle Fattening

7. Duck raising/balut making

8. Piggery and poultry raising

9. Mushroom culture

10. Food processing

As of December 31, 1999 CDA released P127,242,799.05 to cooperatives out pf the P150 Million released by the Department of Budget and Management. 1,012 direct conduit primaries and 11 federations benefited from the program.

A number of electric cooperatives which remain NEA-registered have conveyed their intention to register with CDA in light of the opinion issued by the Department of Justice (DOJ Opinion No. 14) stating therein that electric cooperatives not registered with CDA are liable to pay taxes due to Local Government Units concerned. It can be recalled that out of the 119 electric cooperatives nationwide, only 5 were registered with CDA. The remaining 114 are now liable to pay local taxes upon expiration of their provisional registration with CDA last May 4, 1997 and as provided by Section 133,234 in relation to Section 193 of the Local Government Code.

Pending the approval by CDA and NEA of the "Guidelines on the Registration of Electric Cooperatives from Non-Stock to Share Capital Cooperatives under R.A. 6938", CDA and NEA and to be facilitated possibly by the Philippine Rural Electric Cooperatives Association (PHILRECA) will conduct a joint information campaign on the issues and concerns affecting the EC’s registration with CDA. The campaign shall coincide with the district meetings of the requesting electric cooperative where the issue and concerns shall be discussed before the members-consumers who will ultimately decide on whether or not their electric cooperative will register with CDA.

Aside from the tax exemptions and other privileges already mentioned, other issues and concerns to be discussed during the information campaign are, but not limited, to the following:

1. As shareholders of the electric cooperative, member-consumers can exercise all the rights of ownership in the cooperative including their right to be heard during the discussion of pertinent issues requiring the decision of the general assembly;

2. The right to vote and be voted upon is conferred explicitly on the members;

3. Upon registration with CDA, Section 3 and 5 of Presidential Decree No. 1645 will no longer be applicable. Section 3 pertains to the power of NEA to appoint or fire an Acting General Manager and or Project Supervisor of electric cooperatives while Section 5 gives NEA the power to suspend, remove, or replace any or all the members of the Board of Directors or any officer or the employees of the electric cooperatives;

4. Quorum requirements which is 100 or five per centum of all members, whichever is lesser;

Share capital of the cooperative shall include but shall not be limited to the member-consumers contribution to the electric cooperative such as the Contribution in aid of construction, Construction for reinvestment, and the Amortization Fund which are all incorporated in their monthly electric bill.(R. Sotero, LRD).

For the past four to five years the Manila Extension Offive has observed that almost 35% of its total registered cooperatives do not comply with the requirements of the Cooperative Code and other existing laws. For instance, newly registered cooperatives do not secure necessary local permits, do not register their books of accounts with the BIR and worst do not submit a copy of their Annual Report and Audited Financial Statements to the CDA

To address this malady, starting January 2000 CDA-MEO has embarked on a program which hopes to remedy this situation and thereby sustain the viability and growth of cooperatives. This program is incorporated in its registration procedures wherein before the release of Registration Certificate to newly registered cooperatives they must attend a briefing on how to operationalize a cooperative. Hand-outs are given for free. Virtually, it hopes to correct the negative impression that cooperatives do not comply with the requirements of the Cooperative Code of the Philippines and other laws.

Further, registration certificates for newly organized cooperatives will only be released every last Friday of every month. Prior to its release, the Chairman and the Treasurer are required to attend a briefing on How to Operationalize a Cooperative. The briefing lasts for about 45 to 55 minutes. Among others, the topics are:

* Institutionalization of its regular members

* Discussion and approval of its developmental plan by the GA

* Chart of Accounts for credit cooperatives per CDA Circular #1, S. 1999

* Presentation of Financial and Non-financial books

* Samples of Board of Directors Resolutions (designation of depository bank, office hours & location, appointment of Posting Clerk, bookkeeper, Secretary, Treasurer and others)

* Development of Mission-Vision-Goal Statement

* Securing of local permits

MEO registers a monthly average of 30 to 35 cooperatives. Since the inception of this program, this office recorded a 97.8% attendance of cooperatives. This is impressive and this level is optimistic that cooperatives will heed the advice for their sustenance (M. Pingol-MEO)

The on-going project being jointly implemented by the United Nations Development Programme (UNDP), the Philippine Cooperative Center (PCC) and the Cooperative Development Authority has definitely established a bench mark for cooperative and LGU collaboration. Entitled "Cooperative and Local Governance" for brevity it strikes at the core of a focused economic development in the diffrent communities nationwide, more specifically in the countryside.

First and foremost, the undertaking actually emphasizes the promotion and forging of partnership for local development. The main actors are cooperatives and the local government units (LGUs). And the rationale is for the former 'to deepen their participation' and for the latter 'to improve the quality of their local development planning because of the heightened people's participation.

To jump-start the project, the implementors assisted identified partner-cooperatives and local governments in identifying pilot cooperative-LGU joint projects. These pertain to such areas as basic services, utilities, and local enterprise. Presently, the main focus is cooperative agri-business wherein LGUs may undertake a cooperating role.

As regards the projects, responsive mechanisms and appropriate strategies for implementation are most necessary to achieve the desired results. Among others, certain tasks including the conduct of feasibility studies on the identified projects, development of support and external linkages and mobilization of resources, financial and technical, must be undertaken. Indeed these and many more activities need collaborative efforts of the involved partners.

In this case, the fact that the partner-cooperatives and the LGUs - had participated even at the initial stages of the program and are well aware of their respective roles is definitely a good starting point. Besides the economic benefits can be felt readily in these joint undertakings.

Meanwhile, with the guidance and the vigorous support of the implementors, there could be no hindrance that will stand in the way for the project to achieve its goals and attain success.

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