Question & AnswerQ&A (CDA Memorandum Circular No. 2015-02)
The title is "Guidelines on Inspection of Cooperatives" as per CDA Memorandum Circular No. 2015-02 dated April 30, 2015.
Article XII, Section 15 of the 1987 Philippine Constitution mandates the CDA to promote the viability and growth of cooperatives.
The legal bases are Section 6, Article XII of the 1987 Philippine Constitution, Articles 34 (4) and 52 of RA 9520, and Sections 3 (m) and (o) of RA 6939.
Excluded are cooperatives issued with Show Cause Orders due to inspection, recommended for dissolution, issued with order of dissolution or cancellation, under liquidation, delisted cooperatives, and newly registered cooperatives within the current year.
Inspections are conducted by duly authorized personnel of the Cooperative Development Authority, either from the Central Office or Extension Offices depending on the registered location of the cooperative.
It must include the names of authorized inspectors, the date of inspection, documents and records needed, and a statement requiring mandatory attendance of key cooperative officials during the exit conference.
Inspection is a function exercised by the CDA to ensure cooperatives comply with cooperative laws, rules and regulations, related laws, and administrative issuances.
Penalties as per Article 140 of RA 9520 apply including administrative sanctions on responsible officers or employees, and if the cooperative is a juridical entity, penalties may be imposed on its directors and officers.
The Exit Conference is held to discuss findings and observations, acknowledge good practices, allow the cooperative to refute unsupported findings, and possibly correct findings if warranted.
The Inspection Report must be signed by the Inspector and confirmed by the cooperative’s Chairman and/or General Manager or authorized representative, serving as the official record of inspection findings.
All findings from the inspection shall be considered as admissions of the infractions by the cooperative.
Yes, a cooperative may submit relevant documents within ten (10) days to the appropriate CDA Extension Office to seek reconsideration of negative findings.
Inspections shall be conducted at least once a year.
The inspector may require submission of documents, inquire into financial and cooperative matters, conduct interviews, hold clarificatory conferences, and undertake acts necessary for inspection.
It is an order issued by the Authority to cancel the Certificate of Registration of a cooperative thereby terminating its juridical personality.