Statement of Policy
- LGUs shall contribute to cooperative development per State policies.
- Cooperative development to be coordinated by the Cooperative Development Authority (CDA).
State Policies on Cooperative Development
- The State promotes cooperatives as instruments of equity, social justice, and economic development.
- Cooperatives are recognized as autonomous associations aimed at members' economic and social betterment, based on self-reliance and self-management.
- The National Economic Development Authority (NEDA) includes cooperatives' growth as part of national development plans.
- Government departments must promote cooperatives through appropriate incentives.
- Cooperative sector holds primary responsibility for its institutional development.
- Government assistance should avoid restrictions or conditions interfering with cooperatives' objectives, preserving non-interference in management.
Functions of the Local Government Units
- LGUs, via local chief executives, have powers and functions to promote, organize, regulate, and develop cooperatives:
- Appointment of local cooperative officer.
- Assist in cooperative promotion and organization.
- Assist CDA in evaluating proposed cooperatives, including economic surveys and registration recommendations.
- Support CDA regulatory powers such as collecting reports, mediating disputes, investigating violations, recommending termination, and monitoring compliance.
- Initiate and implement cooperative promotion and development programs aligned with the national plan.
- Provide information to CDA for research purposes.
Functions of the Cooperative Development Authority (CDA)
- Conduct training seminars and workshops for LGUs.
- Develop manuals needed for cooperative promotion and development.
- Provide LGUs with policies and standards on cooperatives.
- Assist LGUs in local cooperative development.
- Supply updated lists of cooperatives per jurisdiction to LGUs.
- Coordinate private cooperative sector and LGUs for more effective cooperation.
Memoranda of Agreement
- CDA and LGUs may enter into Memoranda of Agreement to implement these rules.
- CDA employees may be seconded to LGUs following Civil Service and Commission on Audit rules.
References to Related Laws and Authorities
- Constitution Section 15, Article XII (1987) mandates creation of cooperative development agency.
- Republic Act No. 6938 (Cooperative Code) establishes cooperative policies.
- Republic Act No. 6939 creates the CDA.
- Republic Act No. 7160 (Local Government Code) transfers service delivery to LGUs.
- CDA Board and Oversight Committee approved these implementing rules in 1993.
- Presidential approval dated June 8, 1993.