By Charissa Luci-Atienza

The House of Representatives has approved on second reading a bill seeking to reorganize and strengthen the Cooperative Development Authority (CDA).

House Bill 9051, principally authored by Reps. Sabiniano Canama of COOP NATCCO and Rozzano Rufino Biazon of Muntinlupa City, aims to repeal Republic Act 6939, which created the CDA.

“It is the desire of the cooperative sector to see the CDA adequately empowered to enable it to perform its regulatory powers and to propel cooperatives to become more competitive and competent in pursuit of sustainable operations and delivery of quality services,” Canama said.

House Bill 9051 provides that CDA shall be reorganized and strengthened to make it a more proactive partner of the cooperative sector in improving the quality of life of the people.

Biazon partly attributed the failure of the cooperative movement to take off and deliver on its potential as a vehicle for poverty alleviation and for promoting the participation of the poor in economic activity to inadequate supervision and regulation of the CDA.

“Clearly, there is a need to amend the charter of the CDA to make it a proactive partner of the cooperative sector in improving the quality of life of our people,” he said.

House Bill 9051 provides that the CDA shall be attached to the Department of Trade and Industry (DTI) for policy and program coordination.

Under the bill, the CDA is tasked to develop and formulate appropriate regulations, standards, rules, orders, guidelines and/or circulars to implement the proposed Act and the Philippine Cooperative Code of 2008. It is also expected to exercise supervision and jurisdiction over all types and categories of cooperatives registered with the CDA

The CDA is also expected to assume the following functions: order the suspension and cancellation of the Certificate of Registration of cooperatives and/or the revocation of the Letter of Authority and/or Certificate of Authority to establish and operate satellite or branch offices, respectively; order the dissolution and liquidation of cooperatives as well as the transfer of all or substantially all of their assets and liabilities; hear and decide inter-cooperative and intra-cooperative disputes, controversies and/or conflicts without prejudices to the filing of civil and criminal cases by the parties concerned before the regular courts; and issue cease and desist orders to cooperatives and responsible parties specified under Article 137 of RA 9520 and such other orders and notices to preserve the assets and documents of the cooperatives subject of the dispute or litigation.

The CDA shall also issue subpoenas and summons for the parties to appear and produce documents in any proceedings of the CDA and in appropriate cases; represent the CDA as a voting member in the governing board of the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) to advance cooperative development; represent the CDA in the sectoral and Regional Development Council (RDC) as a regular voting member thereof; and establish and maintain a continuing educational and capability-building program for the CDA.

The CDA’s Board of Directors shall serve as its collegial policy-making body.

It shall be composed of the Chairperson, with the rank and privilege of an Undersecretary, and six members of the Board, with the rank and privilege of an Assistant Secretary, all of whom shall be chosen among the nominees from the cooperative sector.

The Board shall be responsible for policy formulation, strategic planning and direction setting of the agency.

Meanwhile, the CDA Administrator shall be the Executive Director and shall be assisted by a Deputy Executive Director. The Executive Director shall be appointed by the Board of Directors.

The Executive Director shall execute and administer the policies, decisions, orders, and resolutions approved by the Board and shall have the general executive decision and supervision of work and operation of the Authority.

The CDA shall furnish the Bureau of Internal Revenue (BIR) and local government units (LGUs), which include provincial, highly urbanized and independent cities and other concerned agencies, a certified list of duly registered cooperatives for purposes of tax exemptions.

Other authors of the bill are Reps. Anthony Bravo, Maximo Rodriguez, Jr., Maria Valentina Plaza, Evelyn Mellana, Manuel Zubiri, Deputy Speaker Prospero Pichay Jr., Reps. Estrellita Suansing, Dennis Laogan, Rene Relampagos, Dakila Carlo Cua, Rico Geron, Teodoro Montoro, Joseph Stephen Paduano, Milagros Magsaysay, Orestes Salon and Rolando Andaya, Jr.