QuestionsQuestions (CDA MEMORANDUM CIRCULAR NO. 2013-11)
It provides guidelines on how the Cooperative Development Authority (CDA) commences actions for specific prohibited acts or omissions under Article 140 of RA 9520, consistent with MC No. 2012-01, s-2012.
“Code” refers to Republic Act No. 9520, the Philippine Cooperative Code of 2008.
“Authority” refers to the Cooperative Development Authority (CDA) and its Extension Offices.
It refers to the governing body of the CDA.
(1) Acts or omissions penalized under Article 140 that include improper use of the word “cooperative” without due registration (except as provided in Article 130); (2) offenses with imprisonment of not less than 1 year nor more than 5 years or a fine not exceeding ₱50,000 or both; and (3) any violation of the Code for which no penalty is imposed, plus (in Section 3(B)) fraud/irregularity/anomaly under MC No. 2012-01.
The offense is the use of the word “cooperative” by any person or organization unless duly registered as a cooperative under the Code, except as provided for under Article 130 of the Code.
Examples include: (a) omission/refusal to furnish required information, report, or document; (b) providing false or misleading required information/documents; (c) omission/refusal to keep a required book/register or to make required entry; (d) making false/misleading entry; (e) hindering an authorized person from inspection/audit/examination/investigation; (f) failure to comply with an order or written instruction; (g) violation of rules on transactions with a restricted party; (h) abetting/counseling/allowing/authorizing/commanding another person to commit an offense.
For actions under MC No. 2012-01, the Legal Division/Legal Section initiates filing of the complaint only after approval/authorization of the CDA Board. For Article 140 violations specified in Section 3(A), the process starts with evaluation/verification by a designated employee/officer endorsed to the Board, and only after Board approval/authorization does the Legal Division initiate the filing of the complaint.
(1) Executive Director/Regional Director designates an employee/officer to conduct evaluation, verification, and validation based on a written or oral report; (2) the designated person prepares and submits the evaluation/verification report to the Executive Director/Regional Director; (3) the Executive Director/Regional Director endorses and submits it to the Board of Administrators; (4) if the report recommends filing criminal action, the Legal Division initiates filing before the appropriate judicial/quasi-judicial or other appropriate government agency after Board approval and authorization.
A probable violation must exist, anchored on a written or oral report.
The Legal Division initiates the filing of the complaint (before the appropriate judicial, quasi-judicial, or other appropriate government agency) after Board approval and authorization.
It provides approval and authorization: (1) for filing actions under MC No. 2012-01, and (2) after endorsement of evaluation/verification reports for Article 140-related cases, specifically when a recommendation for filing criminal action is made.
Among others: (a) enter the cooperative’s premises during working hours in the presence of officers/members/employees; if absent, secure another officer/employee witness; (b) examine, take, and preserve testimony relative to the acts/omissions; (c) inspect relevant material documents/records; and (d) secure certified true copies of documents needed for the report.
The designated person may enter during working hours and in the presence of the cooperative’s officers, members, or employees; if they are absent, the designated person may secure the presence of another officer or employee to witness the entire proceedings.
To gather evidence relative to the acts or omissions under evaluation or verification.
It allows the designated employee/officer to obtain verified copies of necessary documents to prepare the evaluation/verification report.
If any part is declared invalid, the remaining provisions remain in full force and effect.
It takes effect immediately upon approval (approved per CDA Board Resolution No. 053, s-2013 dated February 7, 2013).
MC No. 2012-01: Legal Division/Legal Section initiates filing after Board approval/authorization. Article 140: Executive Director/Regional Director first triggers evaluation/verification by a designated officer, then endorsement to the Board, and only after a recommendation and Board approval does the Legal Division file the complaint.