Title
Guidelines on Actions for Prohibited Acts under RA 9520
Law
Cda Memorandum Circular No. 2013-11
Decision Date
Feb 7, 2013
The "Guidelines in the Commencement of Action for Specific Prohibited Acts or Omissions Under Article 140 of RA 9520 and Memorandum Circular No. 2012-01, S-2012" provide instructions on how to initiate legal actions against prohibited acts or omissions under the Philippine Cooperative Code, including unauthorized use of the word 'cooperative' and violations of reporting requirements.
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Coverage and Scope

  • Applies to specific prohibited acts or omissions under Article 140 of RA 9520.
  • Includes unauthorized use of the word "cooperative" unless duly registered, offenses with penalties involving imprisonment or fines related to:
    • Failure or refusal to provide required information or documents.
    • Submission of false or misleading information.
    • Failure to maintain proper books or records.
    • Hindering inspections or investigations.
    • Noncompliance with CDA orders or instructions.
    • Violations regarding transactions with restricted parties.
    • Abetting or counseling the commission of offenses under the Code.
  • Covers violations with no specific penalties prescribed.
  • Includes fraud, irregularities, or anomalies under CDA Memorandum Circular No. 2012-01, s-2012.

Procedure for Commencement of Action

  • For violations under MC No. 2012-01, s-2012:
    • Legal Division/Section must obtain approval and authorization from the CDA Board of Administrators before filing complaints with appropriate government agencies.
  • For violations under Article 140 of RA 9520:
    • Upon receipt of a report (written or oral), the Executive or Regional Director designates an employee/officer to evaluate, verify, and validate the alleged violation.
    • The designated officer submits an evaluation report to the Executive/Regional Director.
    • The Director endorses the report to the Board of Administrators.
    • If criminal action is recommended, the Board must approve and authorize before the Legal Division files the complaint.

Powers of the Designated Employee or Officer

  • Authorized to enter cooperative premises during working hours, in the presence of cooperative officers or employees.
  • Can compel the presence of witnesses to observe proceedings.
  • Authorized to examine and document testimony regarding the alleged acts or omissions.
  • Permitted to inspect and copy any relevant materials or records of the cooperative.
  • Can secure certified true copies of documents necessary for evaluation.

Separability Clause

  • If any part of these Guidelines is declared invalid, other provisions remain effective and enforceable.

Effectivity

  • The Guidelines take effect immediately upon approval by the CDA Board of Administrators on February 7, 2013.

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