Policy and Objectives
- Mandated by the 1987 Philippine Constitution and relevant laws to promote cooperative viability and growth.
- Inspection of cooperatives serves as a mechanism to ensure safe and sound operations.
Scope and Coverage
- Applies to all registered cooperatives except those with Show Cause Orders, recommended for dissolution, under liquidation, delisted, or newly registered this year.
- Branch and satellite offices inspected through the main office.
Definitions
- Inspection: Authority’s function to ensure legal compliance by cooperatives.
- Show Cause Order: Order requiring explanation on non-compliance leading to possible dissolution, liquidation or cancellation.
- Order of Dissolution: Authority’s termination of a cooperative’s juridical personality.
- Order of Liquidation: Winding up cooperative affairs by Authority or court.
- Order of Cancellation: Cancellation of the cooperative’s Certificate of Registration.
- Delisted Cooperatives: Cooperatives removed from registry after cancellation.
Notice of Inspection
- Sent to Board of Directors or General Manager at least two weeks before inspection.
- Details include inspector names, inspection date, required documents, and mandatory attendees.
Authority of Inspectors
- Power to require reports, inquire into financial and operational compliance.
- Conduct interviews, exit conferences, and other necessary inspection activities.
Authorized Inspectors
- Inspectors are CDA personnel from Central or Extension Offices.
- Must maintain independence and confidentiality.
Frequency of Inspection
- Conducted at least once annually.
Exit Conference
- Held post-inspection to discuss findings with cooperative’s board and officers.
- Good practices acknowledged.
- Cooperative may contest findings or request time to correct.
- Attendance of key officials is mandatory; absence is waiver.
Inspection Report
- Provided to cooperative after exit conference.
- Signed by inspector and cooperative representatives.
- Becomes official and part of CDA records.
- Basis for possible subsequent examination.
Prohibited Acts and Penalties
- Includes refusal to provide information, submission of false data, hindering inspection, non-compliance with CDA orders, and violations involving restricted transactions.
- Penalties apply to responsible officers or employees; directors and officers are liable if cooperative is juridical person.
Request for Reconsideration
- Refusal to appear deemed admission of violations.
- Cooperative may request reconsideration within 10 days by submitting rebuttal documents.
- CDA Extension Office has discretion to accept or deny correction.
- Decision rendered within 15 days.
Repealing Clause
- Previous guidelines on cooperative inspection repealed.
- Prior inspection findings remain valid.
Separability Clause
- Unconstitutional provisions do not affect other provisions.
Effectivity
- Effective 15 days after publication in ONAR or Official Gazette.
- Approved by the CDA Board of Administrators on April 30, 2015.