QuestionsQuestions (IRR of Republic Act No. 11364)
The IRR declares State policy to promote the viability and growth of cooperatives as instruments of equity, social justice, and economic development, and recognizes cooperatives as associations organized for members’ economic and social betterment based on mutual aid and internationally accepted cooperative principles. It also recognizes the CDA as primarily responsible for institutional development and regulation of cooperatives in partnership with the cooperative sector and academe. The State maintains a policy of non-interference in cooperatives’ management and operations, except as provided by law.
“Authority” refers to the Cooperative Development Authority (CDA), a government agency created by virtue of Republic Act No. 6939 as amended by Republic Act No. 11364, consistent with the constitutional mandate in Article XII, Section 15.
Inter-cooperative disputes are conflicts arising from inter-cooperative relations, including relationships between one cooperative and another, or among cooperatives. Intra-cooperative disputes arise from intra-cooperative relations, including relationships between or among members, or between members and the cooperative.
The CDA exercises developmental, regulatory, and quasi-judicial powers, functions, and responsibilities.
Examples include: formulating integrated cooperative development plans; requiring cooperatives to develop business continuity plans; granting awards/recognitions/incentives; conducting management and training programs; coordinating with agencies for technical/professional/marketing assistance and technology transfer; establishing cooperative development councils; providing assistance on product development and marketing; and designing standards for training focusing on principles, governance, management, risk, conflict, and technical skills.
The CDA shall register all cooperatives including amendments to ACPL, divisions, mergers, and consolidations; authorize establishment of branches and satellite offices (via Certificates of Authority/Letters of Authority); and issue Certificates of Recognition to laboratory cooperatives.
The CDA may conduct regular inspections/examinations, conduct special examinations motu proprio or on request/complaint, investigate verified complaints, require submission of annual reports and audited financial statements, adopt an information system from submitted documents, and assist in post-inspection/post-examination compliance. It may also issue cease and desist orders and order suspension/cancellation/revocation of registration or authority for non-compliance (after due notice and hearing), and order dissolution/liquidation in proper cases.
It may compel a GA/RA in instances such as: (1) failure to call a regular meeting within the by-law date or within 90 days after close of fiscal year (if not fixed); (2) upon petition of 10% of voting members for good cause with proper notice; (3) to report results of examination/investigation; and (4) to replace suspended/removed erring officers directed by the CDA under its quasi-judicial power.
Federation/union representatives may assist procedural compliance in calling the GA/RA, witness the meeting, provide technical advisory/clarificatory assistance, and assist the election committee only in election-related aspects. They must not go beyond those roles or risk disciplinary action.
All decisions of the Authority are appealable directly to the Court of Appeals.
The CDA may issue subpoenas ad testificandum and subpoenas duces tecum to compel appearance and document production in proceedings/investigations. It may cite for contempt persons who commit misconduct in its presence that seriously interrupts hearings/inquiries, and impose penalties of fine not exceeding PHP 5,000 or imprisonment not exceeding ten (10) days, or both; indirect contempt follows Rule 71 of the Rules of Court.
The Board consists of the Chairperson (rank/privilege of an Undersecretary) and six (6) members (rank/privilege of Assistant Secretary), appointed by the President from nominees of the cooperative sector. There is one board director from each cooperative cluster (credit/financial services/CSF; consumers/marketing/producers/logistics; human services; education/advocacy; agriculture/fishery/farmers/dairy; public utilities). DTI and DILG secretaries serve as ex-officio members without voting rights.
They must be natural-born Filipino citizens, holders of any bachelor’s degree, residents of the Philippines for at least five years prior to appointment, and must have five years of experience as officers of a cooperative in the cluster they represent. They must divest direct/indirect pecuniary interest or dealings with any cooperative upon appointment.
A six-year term with no reappointment. However, a person who served the unfinished term of the one succeeded and served less than half of the full term may be eligible for reappointment.
The Administrator executes and administers Board policies/decisions/orders/resolutions and has general executive supervision. Specifically: prepare and submit periodic reports; implement human resource management system; prepare proposed annual and supplemental budgets; submit annual performance/accomplishment reports to the President and Congress; appoint personnel lower than Deputy Administrators; represent the CDA; and perform other functions required by law.
CDCs provide a system for policy consultation and coordination of cooperative programs/projects at national, regional, provincial, city, and municipal levels under CDA supervision. Membership may include cooperatives, LGUs, NGAs, NGOs, academe, and other stakeholders. The IRR states CDC powers/functions like coordinating plans/programs, assisting in broad-based monitoring of the Philippine Cooperative Development Plan, and proposing policies affecting cooperatives.