Question & AnswerQ&A (COOPERATIVE DEVELOPMENT AUTHORITY)
The government is committed to the growth and development of the Filipino people through cooperatives, recognizing them as important organizations contributing to economic development.
Cooperatives must be duly registered under Republic Act No. 9520, the Philippine Cooperative Code of 2008.
The fund assistance can be utilized for livelihood/enterprise development projects, credit/re-lending to provide additional capital, capacity-building including training and seminars, and operational support system improvements.
Documents include an endorsement letter from the sponsoring legislator, board resolution, detailed project proposal, certificate of good standing, list of incumbent officers, audited financial statements for the past three years, a memorandum of agreement, cooperative certification of equity, proof of similar projects undertaken, a sworn affidavit about conflicts of interest, and disclosure of related businesses.
The CDA acts as the implementing agency for cooperative development programs, verifies eligibility, conducts validations and briefings, facilitates the release of funds, monitors projects, and enforces compliance including sanctions for violations.
The cooperative must be registered under RA 9520, certified to be in good standing, with no unliquidated financial assistance with the Authority, and must have been operating for the last three consecutive years.
The CDA may demand the refund of unused funds, initiate actions against the cooperative, including civil or criminal proceedings against directors or officers, and other material violation penalties.
Funds must not be used for money market placements or investments, cash advances to officials (unless related to the project), payment of salaries or allowances to non-project personnel, purchase of government supplies or motor vehicles, acquisition of assets unrelated to the project, or any purpose other than the original project stated in the MOA.
The cooperative must submit complete documentary requirements, attend a CDA briefing, execute a memorandum of agreement and a certificate of undertaking that includes their obligation to liquidate the funds.
The CDA requires submission of project progress and liquidation reports, conducts monitoring visits, requires photographic and documentary proof of project implementation, and coordinates with sponsoring legislators for ongoing oversight until project completion.