Today, the Coop Chamber and CLIMBS presented a joint position paper on the proposed amendments to RA 9520 (Philippine Cooperative Code of 2008) at the second Senate Committee on Cooperatives hearing. The hearing was chaired by Senator Imee R. Marcos and was jointly held with the Senate Committee on Constitutional Amendments chaired by Senator Robin Padilla, who was also present during the hearing, and the Senate Committee on Ways and Means chaired by Senator Win Gatchalian.
Leaders from the cooperative movement and officials from various national government agencies, including the Department of Agriculture, Cooperative Development Authority, National Anti-Poverty Commission, Department of Migrant Workers, and the Bureau of Internal Revenue, are also in attendance.
CLIMBS Life and General Insurance Cooperative CEO & President and Founding Trustee, Mr. Noel D. Raboy, NOVADECI Director and Coop Chamber Trustee, Ms. Marlene D. Sindayen, CLIMBS VP for Sales, Mr. Renan P. Diaz, and Coop Chamber Executive Director Edwin A. Bustillos were in attendance and actively contributed in the deliberation of HB 9673 (Authored by Representative Nicanor Briones, Representative Felimon Espares, Speaker Martin Romualdez and other Members of the House of Representatives) and the 3 Senate Bills namely: Senate Bill 418, authored by Senate Committee on Cooperatives Chair Senator Imee R. Marcos, Senate Bill 2378 authored by Senator Jinggoy Estrada, and Senate Bill 2480 authored by Senator JV Ejercito.
During the Senate session, Senator Imee Marcos raised some important points regarding the proposed amendments. She drew attention to several sections that caught the interest of the Senate and the Chairperson. These sections included the formation of a primary cooperative, which would be open to non-Filipinos as members, as long as the majority of members are Filipino. Other notable areas of interest were the inclusion of foreign cooperatives in a local federation, the implementation of share voting, tax exemption privileges, CETF, and the classification of different categories and types of cooperatives among others.
In several discussions interposed by the President and CEO of CLIMBS and the Chairperson of Coop Chamber, Mr. Noel D Raboy, the good Senator appeared to agree with the position of CLIMBS, NOVADECI, and the Coop Chamber.
The Coop leaders led by CLIMBS President and CEO Noel Raboy, asserted that while they are open to 40% share capital holdings in a federation, the share voting MUST not be allowed. He emphasized the universally accepted principles of cooperation particularly the second (2nd) which is Democratic Member Control states that:
(2) Democratic Member Control – Cooperatives are democratic organizations that are controlled by their members who actively participate in setting their policies and making decisions. Men and women serving as elected representatives, directors or officers are accountable to the membership. In primary cooperatives, members have equal voting rights of one-member, one-vote. Cooperatives at other levels are organized in the same democratic manner. (Underscore ours.)
This means that each member has an equal say and vote in the decision-making process. It’s important to note that even at other levels, in such a democratic manner, the one member, one vote shall apply.
PHOTO CREDITS: Jesse Bustos fro Philippine Star’s Official Facebook Page
He further stated that this is the difference between a cooperative and a corporation, to which the good Senator readily agreed.
Related to foreign cooperatives’ membership to a local federation, CLIMBS, and the Coop Chamber firmly believe in the 6th Cooperative Principle: Cooperation among Cooperatives. The Coop Chamber stated that under;
(6) Cooperation Among Cooperatives – Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
Further, the Coop Chamber interjected that details that will be laid down in the Implementing Rules and Regulations of this Code must come from the local federations.
In this respect, cooperatives must provide the necessary details of their investment, participation, or membership shall be left to the discretion of the local federation, to which Senator Imee agreed.
In crafting the above section’s rules and regulations, cooperatives have the final say as explained by the Coop Chamber representative.
Senator Imee Marcos has expressed her support for the increase of the current 10 million cap on accumulated reserves and undivided net savings. According to the Senator, the current amount is no longer appropriate for the times. However, she has ordered the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) to provide a report on the possible effect of the increase on taxes. The Senator highlighted the need to raise the cap, especially for agricultural cooperatives. This was one of the reasons why President Marcos initially wanted the Code to be amended – to support farmers through cooperatives.
Marlene Sindayen, the General Manager of NOVADECI and a Coop Chamber Board Trustee, expressed her gratitude for the Senate’s support in continuing the tax exemptions of cooperatives. She also emphasized that cooperatives should not be required to provide their TIN during the application and renewal of their Certificate of Tax Exemptions. Representative Emon Espares and the CDA supported her stance, and Senator Imee clarified the matter, ultimately agreeing with Trustee Marlene’s position.
As there are other sections or provisions in the proposed measures that needed to be discussed, Senator Imee called the attention of other cooperatives present to submit their position paper, including the government agencies invited, because she was of the impression that the House and Senate Committees must finish a report regarding the amendments of RA 9520, in time for the next State of the Nation Adress by President Ferdinand R. Marcos, Jr. on July 22, 2024.
