MANILA, (PIA) — The Cooperative Development Authority (CDA) has outlined the consequences for cooperatives that fail to adhere to regulatory standards, emphasizing a structured approach to enforcement.
During the weekly Kapihan sa Bagong Pilipinas held Tuesday at the Philippine Information Agency in Quezon City, CDA NCR Regional Director Pedro T. Defensor Jr. detailed the penalties for non-compliance, noting that cooperatives that violate regulations will first receive a formal notice, often referred to as a “love letter.”
This document serves as a reminder to rectify the identified issues within ten days.
“If the ten-day period lapses without compliance, we will suspend the cooperative’s Certificate of Compliance (CoC),” said Defensor.
This suspension puts the cooperative at risk of losing tax-exempt privileges, as they become vulnerable to the Bureau of Internal Revenue (BIR).
Should the issues remain unaddressed after a specified period, further action will be taken, including potentially canceling the cooperative’s Certificate of Registration.
The process may even lead to the dissolution of the cooperative, accompanied by a liquidation process.
The CDA also addressed the accountability of cooperative officers, stating that under Republic Act No. 11364, the authority has the power to suspend or discipline officers responsible for regulatory violations.
In a follow-up discussion, the CDA encouraged cooperative members to report grievances directly to their office.
Members can submit complaints via email, using the official CDA address. While anonymity is permitted, officials advised against it, stating that transparent communication is crucial for effective resolution.
“We encourage members to be brave and not to hide. The CDA is here to support those who stand up against wrongdoing within their cooperatives,” the representative added.
As the CDA continues to enforce regulations, it remains committed to maintaining standards and protecting the interests of cooperative members across the nation. (MKG/PIA-NCR)
