Question & AnswerQ&A (CDA MEMORANDUM CIRCULAR NO. 2012-01)
The rules are known as the 'CDA Rules of Procedure Governing the Conduct of Investigation or Inquiry.'
It refers to a cooperative duly registered with the CDA pursuant to RA 6938, as amended by RA 9520 and RA 6939.
A 'Complaint' is a verified statement alleging fraud, irregularity, or anomaly by any officer in a cooperative, subject to certain procedural requirements.
Fraud is an act or omission calculated to deceive or breach a legal duty, trust, or confidence, resulting in loss or damage to another or an undue advantage taken from a person or member of the cooperative.
Fraud involves deceit causing loss or damage, while irregularity or anomaly may not be fraudulent but results in financial loss or violates cooperative laws, IRR, articles of cooperation, or by-laws.
Investigation or inquiry may be initiated based on a complaint from a member or officer, a complaint from a government agency, or the final report of examination or inspection conducted by the CDA.
The Board of Administrators of the CDA, or its delegated Regional Director, upon recommendation from a final report of examination or inspection or based on a complaint.
The complaint must include the complainant's and cooperative's full names and addresses, identification of responsible persons, a narration of relevant facts, a sworn statement of no prior action on the same matter, sworn undertaking to report if such action arises, and supporting documents or affidavits.
Withdrawal does not automatically dismiss the investigation if there is sufficient basis or documentary evidence supporting the allegations; the investigation may proceed.
Mediation or conciliation involving the same parties and subject matter causes suspension of the investigation, except if the matter is non-mediatable. A settlement terminates the investigation; if no settlement is reached, parties may continue the investigation or opt for voluntary arbitration.
Investigators may enter the cooperative's premises during working hours, examine and preserve testimonies, inspect pertinent documents, and secure certified true copies of documents necessary for the investigation.
Investigations should preferably be completed within thirty (30) days from the commencement of the investigation.
It must have a brief statement of the complaint, narration of facts, findings (including violations), the basis for findings with supporting documents, and recommendations.
The Board may approve, modify, disapprove, or direct re-investigation based on the report and recommendations.
If the report recommends filing criminal charges, the Legal Division, with the concurrence of the Board, initiates filing the complaint before the appropriate judicial or quasi-judicial agency.