Title and Application
- Known as the CDA Rules of Procedure Governing the Conduct of Investigation or Inquiry.
- Applicable to CDA investigations or inquiries into fraud, irregularity, or anomalies within cooperatives.
- Investigations initiated from complaints by members, government agencies, or final CDA examination reports.
Definitions
- Detailed definitions of essential terms such as CDA, cooperative, complaint, complainant, fraud, irregularity, investigation, Board of Administrators, investigators, etc.
- Fraud defined as acts of deception causing loss or undue advantage.
- Irregularity includes acts causing financial loss or violations of cooperative laws, not necessarily fraud.
Nature and Scope of Proceedings
- Proceedings are non-adversarial, confidential, and not bound by technical court rules.
- Disclosures allowed only when proceedings lead to administrative, criminal, or civil actions.
- CDA’s jurisdiction covers violations of RA 9520, related laws, IRRs, or CDA issuances.
- Investigations limited to facts pertinent to the specific complaint or final report.
Authority to Initiate Investigation
- Investigation only upon Board of Administrators’ prior authorization based on complaints or adverse findings.
- Board can delegate authority to regional directors.
Complaint Requirements and Filing
- Complaints must be verified, contain full identification of parties, detailed narration of fraud or irregularity, sworn statements, and supporting documents.
- Complaints may be dismissed if requirements are unmet.
- Government agency reports with written requests hold validity as complaints.
- Complaints filed with CDA regional office where cooperative’s principal office is located; complaints on branches coordinated accordingly.
- Central office handles complaints involving cooperatives under its direct supervision.
Action on Complaints and Investigation Commencement
- Investigation begins within 15 days after Board or delegated regional director approval, upon finding the complaint sufficient.
- Withdrawal of complaint does not preclude continuation if evidence supports allegations.
Mediation and Suspension
- Mediation or conciliation suspends investigation except in non-mediable issues.
- Settlement terminates proceedings, non-settlement leads to further decision by complainant on continuing investigation or arbitration.
Investigations Initiated by CDA
- CDA may initiate investigation based on negative findings in official examination reports.
- Final reports must identify responsible persons and detail relevant facts.
Investigation Procedures
- Notice to cooperative officers served at least three days before investigation.
- Refusal to accept notice does not stop investigation.
- Investigators’ authority includes entry to premises, testimony taking, document inspection, and copying.
- Investigation preferably completes within 30 days from commencement.
- Investigations preferably held at cooperative’s premises but may be moved due to security, impartiality, or other considerations.
Report of Investigation
- Investigator(s) must submit a signed, written report containing complaint statement, facts, findings with legal basis, and recommendations.
- Report submitted to Board through Legal Division.
- Board reviews, may approve, modify, disapprove, or order reinvestigation.
Filing Charges
- Upon recommendation for criminal action, Legal Division initiates filing of complaint in appropriate forum with Board concurrence.
Final Provisions
- Repeals inconsistent CDA issuances.
- Contains separability clause preserving validity of unaffected provisions.
- Rules become effective 15 days after publication.
This comprehensive procedural framework ensures CDA's investigatory processes into cooperatives are systematic, legally sound, transparent yet confidential, and uphold cooperative and public interest.