top of page

Philippine co-operatives misconceptions, and malpractices...


When is your Philippine Co-operative Code Day?


Series No.: 01 ... By: RAUD, 2014 March 8 Sat, 5:00pm 063-835-0911 pLdt Land Line pLus also accepts celfon texting Peace.


This could be in some series. This could hopefully just to initiate some helpful and healthful discussions. As such, the series do not assume to be final and perfect.


This is dedicated to the big men and women in the Philippine Co-operative Movement.


This is also dedicated to the enactment of the Philippine Twin Co-op Laws on March 10, 1990 by the President at the Philippine International Convention Center (PICC) in the presence of and witnessed by 2,000 co-operative leaders from all over the Country and all Ambassadors to the Philippines from all other countries as could have been headed by the foreign dignitaries from Canada, Germany, Great Britain, Japan, etc.


The twin co-op laws of the Philippines are the Philippine Co-operative Code (6938) and the C.D.A. Law or the Co-operative Development Authority Law (RA-6939). There appear to be no co-operative leader or co-operative leader leading some remembrance or preparing some celebrations of the date March 10 unlike in the early years. And not even the so-called amendment of the Philippine Co-op Code of year 2008 under RA-9520.


There appear to be a lot of misconceptions and possibly a lot of malpractices still existing until today on the so-called Philippine Co-operative Movement that need to be discussed even at least among the co-operative leaders and members. As some preliminary guide, we could start with the following:


01. Co-operative principles In science, principles are natural laws. Anybody “violating” any “natural principle” will suffer badly the consequences, often immediate consequences; and affect many others. Unfortunately, one could easily design some simple tests to check that ninety (90%) percent of our co-operative leaders especially existing officers of co-operatives at all types and levels, cannot state correctly the titles and the numbers and in correct sequence all the co-operative principles. Every co-op leader and member has his/her own and different understanding or explanations of each of the principle.


02. Philosophy With lots of misunderstanding on the on each of the Co-operative Principles, the discussions and understanding and “promotion” of co-operative values and practices must not only be very broad but could be confusing.


03. History Retelling of basic co-operative history even in the Philippines must have not been deeply rooted and could have no real values to co-op leaders and members.


04. Membership In spite of the existence of some and so-called “big” primary co-operatives and leading as well as working co-operative unions and co-operative federations, after thirty (30) years, the membership in the respective communities have not reached a safe and service level of twenty (20 %) percent.


05. Interests on deposits and on loans Even among the “intelligencia” members of a primary co-operative, there is a great wide understanding or misunderstanding on the most proper interest rates on the deposits or investments of every member; and so, on the interest rates on loans.


06. Types and levels Though there are various and many types of primary co-operatives, in the Philippines, co-operative leaders are appearing “contented” for at least the last half century or for the last fifty (50) years, with only the credit co-operative or credit union type. Many primary co-operative leaders are not active or have not made their primaries be members of the co-operative unions or co-operative federations in their areas. If “active” or “members”, one could design some simple tests to determine that the membership could be some “very conditional”, “lukewarm”, and not “wholeheartedly”.


07. Dividends The better practice on distribution of dividends, patronage refunds, and interests on the deposits and investments of members should have been after the Annual General Assembly or the Annual Representative Assembly. But, many so-called leading and big time co-operatives of today are doing the distribution before the A.G.A. or A.R.A.


08. Annual General Assembly, and Mid-Year General


Assembly Annual General Assembly should have been better one month at the end of the calendar year or operation year. But, even with the computerization, many of the big time and leading co-operatives have over two months.


For some “members empowerment” in the last thirty-five (35) years since 1979, probably only the Mindanao State University – Iligan Institute of Technology National Multi-Purpose Co-operative could be the only co-operative in the Country today that has been consistent with holding a “Mid-Year General Assembly”.


In the next series, we hope to discuss more. TRG & W – Tnx, Regards, and God bless you all; and Wassalam (Peace be with you all).


- RAUD, 2014 Mar 8 Sat, 5:00pm

bottom of page