Second coop market opens at Lumbia airport

By Nicole J. Managbanag

Thursday, November 10, 2011

THE Cooperative Development Authority (CDA) in Northern Mindanao formally opened Wednesday its second “bagsakan” or trading center for registered cooperatives at Lumbia airport in Barangay Lumbia, here.

CDA regional director Orlando Ravanera said the second branch CDA-run “pasalubong” center called Cooperative Market eases transients to access locally made products which foodstuffs are produced by cooperatives.

The second branch has coffee shop funded through effort of Abamin party-list representative Maxi Rodriguez and Ating Koop party-list.

Ravanera noted the success of the main Cooperative Market at Manresa in Upper Carmen prompting the CDA-Northern Mindanao to open up another store that is more visible and accessible to tourists.


He said the cooperative market is a paradigm shift in promoting organically grown products from 37 cooperatives in Northern Mindanao.


Among the products available at the market are organic rice and vegetables, coconut sugar, vermicast fertilizer, vinegar, Yacun, tea syrup, fresh milk, pasalubong products, ornamental plants, abaca fibers, slippers, hangers and twines sold at reasonable prices.


“We develop this market because we are now shifting our program, from conventional to sustainable agriculture. It is now time to shape the farmers to be in control in the marketing of their products. With the help of the cooperative market, we are now helping them sell to local and international buyers,” he said.


Ravanera said the people have been “brainwashed too much by foreign advertisements,” pushing them to go abroad and patronize foreign products.

“A country that is not producing will always be penalized to be poor. We are now considered the 15th poorest country since we are a dumping ground for finished products from other countries,” he added.

He said when people buy the products from cooperatives “they are supporting the livelihood of the poor.”
“This is the start of what you call the spring board of a cooperative market that will be established in the region. The cooperatives are now ready to present their products, which are of high quality and globally competitive. At least, the farmers can now look forward to a place where they can deliver their produce,” the regional cooperative agency regional head said urging more cooperatives to join the cooperative market.

“All are welcome to sell at the market, even those who are not members of cooperatives as long as their products are locally made.”

During the opening, Rodriguez and Ating Koop party list Representative Isidro Lico witnessed the event.

In his speech, Rodriguez vowed further financial aid to establish more cooperative market branches not only in Northern Mindanao but the Mindanao region as well to help improve the lives of the farmers.

Published in the Sun.Star Cagayan de Oro newspaper on November 11, 2011.

http://bit.ly/tFa3JZ 

Prepaid metering system seen to bring down power rates

Posted on 09 Nov 2011 at 1:13pm

More than a million member-consumers of electric cooperatives that are registered with the Cooperative Development Authority (CDA) will soon enjoy lower electricity rates with the implementation of the country’s first-ever prepaid metering program next year.

The CDA-registered electric coops, represented by Rep. Ponciano Payuyo (3rd from left in photo) of the Association of Philippine Electric Cooperatives (APEC), foresee at least a 50 centavo-per kilowatt hour drop in their current electric bills or about P50 per 100 kilowatt hours and P250 per 500 kwh for household consumers and P1,000 for commercial and industrial consumers of 2,000 kwh per month.

Payuyo and IT expert Dante Mara (right) yesterday met with Land Bank president and CEO Gilda Pico (2nd from left) and LBP Executive Vice President Willie Maldia (left) to discuss how Land Bank can provide funding assistance to the sector to bring down high power rates.

Under the prepaid metering scheme which is similar to the prepaid cellphone system, electric consumers will buy prepaid cards from their electric cooperatives and load the card values into the electric meter in order to turn on the supply of electricity for the number of hours they intend to use it.

Payuyo said household members who leave the house in the morning for school or office may choose not to load their prepaid cards when nobody is at home and load the prepaid card only upon their arrival from school, office or elsewhere.

“This will reduce system losses as it will prevent the pilferage of electricity, reduce electricity consumption, develop a culture of thrift and result in monthly savings from the lower electricity rates,” Payuyo explained.

He said it will also keep household members alert and vigilant against illegal electricity connections by neighbors because their prepaid cards are only good and limited for their households’ consumption.

Aside from these, Payuyo said the shift to prepaid metering will reduce the accounting and collection costs of the electric cooperatives since there would be no need for meter readers, collectors and accounting personnel. This cost reduction also translates to savings for the electric cooperatives which would be passed on to their member-consumers every month.

Payuyo said the prepaid metering scheme will be pilot-tested next year in Puerto Princesa City, Palawan through the Palawan Electric Cooperative (Paleco) where he served as General Manager for 16 years.

He said the savings to be generated from the prepaid metering system could also be used to fund other programs for Paleco members, such as a bulk-buying system for petroleum products such as gasoline, diesel and kerosene or the bulk-buying of food and non-food items, including groceries, with big discounts.

Meanwhile, Mrs. Pico said Land Bank supports the effort to bring down the regime of high electricity rates especially among cooperative members who constitiute Land Bank’s primary beneficiary base. Pico designated Maldia as LBP’s lead person for the program.

http://bit.ly/tn0VZ5

CDA presses conversion of coops

Wednesday, November 9, 2011

LA TRINIDAD, Benguet - Conversion of electric cooperatives to stock cooperatives will have many advantages to its consumer members and to the cooperative as well, Ating Koop party-list Representative Isidro Lico said.

Lico said, during the Regional Cooperative Month held last week at the Benguet State University, registration of electric cooperatives to Cooperative Development Authority (CDA) as stock cooperative is one of their primary advocacies, as it has many advantages for the member-consumers and the electric cooperative.

Lico said CDA-registered cooperatives are exempted of the 12 percent value-added tax (VAT) which would eventually result to the reduction of electric rates for the consumers.
Lico said the conversion of electric cooperatives into stock coop would also give recognition to consumers as co-owner of the cooperative.


In the present set-up, consumers are not considered as such because there is no record of ownership and how much the consumers are contributing. (Lito Dar)

http://bit.ly/w4tRjx

King Coop eyes P1-B in assets

Written By:  Carmelito Q. Francisco
Tuesday, 08 November 2011
Category: Economy

 

King Cooperative, one of the biggest coopreratives in the city in terms of membership at 32,000, is targeting to grow its assets to P1 billion within the next three years from P750 million at present.




The cooperative is looking at increasing its membership to 40,000 within the period to hit its goal, said Nestor D. Ortigoza, its general manager.

“There is still a big untapped market,” Ortigoza told the TIMES, pointing out that the cooperative has started strengthening its campaign to increase its members so it would be able to reach its goal.

He said the cooperative, which already has 27 branches in urban centers in Mindanao, is studying to expand in some strategic areas within the island as it wanted to set up 13 more branches within the next five years.

But the cooperative will ensure that only “quality members” will be the ones to get accepted. “We will make sure that as we grow our cooperatives, our members will also grow with it,” Ortigoza added.

Engr. Jaime G. Adalin Jr., acting head of the City Cooperative and Development Office, earlier said that in the city alone, there are still a very big market for cooperatives. “We hope that within the next two years we will be able to achieve the 300,000 membership mark,” he earlier said.

Based on the record of the regional office of the Cooperative Development Authority, the city has about 204,000 residents who are members of cooperatives. The city has about 1.46 million population in 2010 based on the city government official estimates.

Ortigoza said that if the 30-year old cooperative, which started at the office of the Department of Agriculture, could breach the P1 billion mark in terms of assets, it could grow its assets to as big as P3 billion two years after achieving the first target. “It is easier to grow bigger when you have hit the P1 billion club because you already have a history (of being a well-managed cooperative),” he said.

Adalin said that many cooperatives were not able to sustain their operations because of mismanagement.

Unlike those that closed down their operations, the King Cooperative has been able to thrive because it has made sure that all members of its management team are “qualified and capable of being managers,” Ortigoza said.

The cooperative is also venturing into businesses other than lending in its efforts to increase its profitability.

Next month, it will pilot test its agreement with a remittance company, Western Union so it could start its remittance business as agent of the company. It will put up five remittance centers in key areas, but some branch managers outside of the five branches where these centers will be set up already wanted their branches to be included in the business model, Mr. Ortigoza added.

The cooperative is also finalizing its agreement with the city-based petroleum company, Phoenix Petroleum Philippines, for the setting up of its first gasoline station in Digos City, Davao del Sur.

It is also studying the proposal to offer insurance coverages to its members. “We are finalizing this idea so that we can also offer a product that our members also need,” Ortigoza added.

He said the management has decided to come up with new business models other than lending so it could also grow faster than traditional cooperatives. “In the past, growing a cooperative was slower as members (of the board of directors) were conservative. They thought then that investments other than lending were risky,” he explained.

http://bit.ly/tLmSlE

CDA targets expansion of cooperative membership

Friday, November 4, 2011

THE Cooperative Development Authority (CDA) in Northern Mindanao is planning for massive expansion of cooperative membership in the province of Misamis Occidental.
Lawyer Paisalin Tago, CDA administrator for Mindanao, said one of the agenda of the cooperative agency is to increase the membership to 20 million by 2013 from current membership of more than seven million.

He said the CDA is encouraging cooperatives to register, again, as mandated by Republic Act 9520, citing the present 20,000 registered cooperatives is much lower compared to the more than 90,000 registered cooperatives before the enactment of the new cooperative code.

One of the speakers during the recent second provincial cooperative congress held at the Social Hall of the Provincial Capitol, Tago emphasized that putting up a cooperative is a solution to minimize poverty, reduce unemployment, and promote peace and order.

He also disclosed that they are eyeing conversion of the so-called electric cooperatives (ECs) into genuine cooperatives as a strategy to increase membership.

Under RA 9520, ECs cannot enjoy the privilege of tax exemption unless they are registered with the CDA and registering will mean the member-consumers of ECs will then and there become cooperative members.

Aside from the expansion in membership, the CDA will also boost and enhance its delivery mechanism and provide an enabling environment for the strengthening and development of cooperatives in the country.

As provided in the Philippine Cooperative Medium-Term Development Plan for 2011-2016, the CDA will ensure access of cooperatives to global markets, provide viable linkages and networks to support cooperatives and establish appropriate quality system.

It also creates the appropriate environment for partnership among cooperatives, both local and international, local government units, national line agencies, non-government organizations, people’s organizations, and the private sector.

Such policies will ensure viable, competitive and sustainable cooperatives as engine of growth and development, Tago said. (PR)


http://bit.ly/vIv4AQ

5,000 to gather for 2nd national coop peace forum

By Cong Corrales | Saturday| November 5, 2011 |

CAGAYAN DE ORO CITY (MindaNews/4 Nov) – Some 5,000 cooperative leaders representing 20,178 cooperatives nationwide are set to gather in this city for the 2nd National Cooperative Peace Forum, an official of the Cooperative Development Authority (CDA) said Thursday.

Dubbed as “11.11.11,” the “convergence will see the coming together of 5,000 coop leaders from all over the country with stakeholders representing the local government units, NGOs, lumads, Muslims, academe and the civic organizations to bring to all and sundry the cooperative declaration for peace,” said Orland Ravanera, CDA regional director for Northern Mindanao.

“The final solution of war is peace building. If we collectively uproot the causes of war then insurgency would lose its relevance to those who have been victims of social injustice, deficiency in governance,” Ravanera said in an interview.

He added that “cooperative as a paradigm for achieving social justice is the best vehicle towards peace building.”

Carrying the theme “Advancing the essence of peace through cooperativism,” the forum is scheduled on November 11 at the atrium of LimKetKai Mall in this city.

Ravanera noted that the issues of the poor usually don’t get people’s attention. “This forum will give space for them,” Ravanera said.

The forum will tackle the cooperatives’ “nine paths to peace,” which is attaining peace through 1) sustainable agriculture; 2) protection, rehabilitation and preferential use of natural resources; 3) rights-based management of utilities; 4) good governance and people empowerment; 5) human resource development; 6) conflict transformation, management and resolution; 7) promotion of Halal food; 8 international cooperation and integration of foreign peace-making initiatives; and 9) recognition and acceptance of cultural diversity and integrity.

Philippine Cooperative Center chair Agapito “Butz” Aquino is slated to give the general synthesis in the context of cooperativism after the presentations.

“We are inviting you to take part in advancing the crusade to exemplify that cooperativism can be up to the task of becoming not only an instrument of social justice, empowerment and development but also a vehicle for peace-building to address the root causes of war, poverty and social injustices,” said Ravanera. (Cong B. Corrales / MindaNews)

http://bit.ly/s4RhJS

Co-op members need not be taxed

SC cites social justice in rendering decision

By: Ronnel W. Domingo
Philippine Daily Inquirer
2:06 am | Monday, October 24th, 2011

Cooperatives are not required to withhold taxes on interest from their members’ savings and time deposits, according to the Bureau of Internal Revenue.

According to Revenue Commissioner Kim S. Henares, this ruling still has to be affirmed and publicized following a Supreme Court decision issued in January 2010.

In Revenue Memorandum Circular No. 47-2011, Henares explained that, based on the Supreme Court ruling, the savings and time deposits of members of a cooperative are not subject to the 20-percent withholding tax.

The high court decided in favor of the Dumaguete Cathedral Credit Cooperative, which the BIR in 2002 pursued for failing to withhold taxes of its members.

Based on the BIR’s assessment, the DCCC owes the government P2.95 million—P1.49 million for 1999 and P1.46 million for 2000—in withholding taxes on interest earnings.

Although the DCCC protested the revenue assessment, the BIR failed to act on the matter within the prescribed 180-day period. The cooperative then brought the issue to the Court of Tax Appeals.

In 2007, the CTA ruled in favor of the BIR, ordering DCCC to pay a total of P2.64 million, plus a 20-percent penalty for each year.

According to the Supreme Court, the tax code provides for the imposition of a 20-percent final (withholding) tax on interest from bank deposit as well as earnings from deposit substitutes, trust funds and similar arrangements.

But in its ruling, the high tribunal did not consider savings and time deposits in cooperatives as subject to withholding tax.

In fact, the high court said, this interpretation of the tax code is contained in a BIR ruling issued in 1998 and again in another ruling issued in 2006.

“Petitioner’s invocation [of these two BIR rulings] is proper,” the Supreme Court said.

“The Constitution states that the promotion of social justice shall include the commitment to create economic opportunities based on freedom of initiative and self-reliance. We find that an interpretation exempting members of cooperatives [from the withholding tax] is more in keeping with the letter and spirit of our Constitution.”

http://business.inquirer.net/26505/co-op-members-need-not-be-taxed

Co-ops to fuel economy

By Malou Guanzon-Apalisok
Cebu Daily News
8:42 am | Thursday, October 20th, 2011 

The 1st Central Visayas Co-op Solidarity Council conference reels off today at the Waterfront Cebu City Hotel and Casino in barangay Lahug, a three-day activity that brings together more than 700 coop leaders from all over the central islands.

The CVCSC meet will also kick off the 2012 International Year of Cooperatives, a United Nations-sponsored observance that aims to highlight the contribution of the sector to global socioeconomic development, particularly its impact on poverty reduction, employment generation and social integration. The International Cooperative Alliance is the main driver of this celebration and in the Philippines the Central Visayas co-ops are firing the opening salvo.

The business of cooperatives does not generate the kind of excitement that usually goes with corporate events that feature celebrities and loads of freebies, but if you happen to interact with the cooperative sector nowadays, you could sense an excitement that comes only with big and significant developments never before experienced by the movement in the Philippines.

I’m talking about the thrust of President Noynoy Aquino in turning to co-op concepts and experts in crafting and implementing his administration’s poverty reduction programs.

I recall that in the Asian Institute of Management policy conference “Pathways to High and Inclusive Growth” last Sept. 23, National Anti-Poverty Commission lead convenor Joel Rocamora mentioned the co-ops as a critical link in poverty reduction strategies because of its proven track record.

Early this week, President Aquino issued Administrative Order 21, which set specific criteria in the selection of sectoral representatives who could participate in the assemblies of NAPC. The National Sectoral Assembly (NSA) cuts across 1,300 basic sector organizations from all over the country.  Considered the most vulnerable to poverty are “artisans, fisher folk, children, farmers, indigenous peoples, nongovernment organizations, persons with disabilities, senior citizens, urban poor, victims of disasters, women, political parties, formal labor and migrant workers, workers in the informal sector, youth and students.”

I’m happy to report that one of those who made it to National Sectoral Assembly (NSA) is Mercedes “Ched” Castillo, chief executive officer of Victo National, a cooperative training and development center based in Cebu City.  In the NAPC’s perspective, the co-op has a mandate not just to further strengthen affiliates but to diffuse the benefits of the co-op system by bringing in it the poorest of the poor communities.

Political observers note that by issuing A.O. 21, the President returned to the people the power to select their representatives in the lead agency tasked to reduce if not purge poverty. It has been reported that in previous years, many civil society groups were excluded from joining the NAPC because of their critical stance to the previous administration. The disenfranchisement of the basic sectors from the process of looking for viable solutions to the problem of poverty has politicized the agency and further marginalized those who live in the fringes of society.

The synergy in this partnership fuels the excitement of co-ops nationwide. Government infrastructure coupled with resources to the tune of P39 billion in conditional cash transfers next year can be both daunting and exhilarating. However, if VICTO National was able to set up 50 co-ops in war-ravaged Afghanistan years back, why not in the Philippines?

As of June 10, 2010, there are 15,458 registered cooperatives nationwide with combined membership of 6,778,037, P163.01 billion in total assets and P186.07 billion in authorized capital. Of these, P58.25 billion is subscribed and P34.08 billion is paid, says the state regulatory body Cooperative Development Authority (CDA).

The work of the cooperatives and the logistical support of the government would look like a partnership made in heaven.  However, I heard that some co-ops are unhappy with too much regulation. There are reports that some elements in the CDA are making it difficult for co-ops to perform well, so some quarters are demanding self-regulation.

I think P-Noy should look closely at the workings of the CDA.  His centerpiece anti-poverty program cannot be compromised by government officials who persist in their wang-wang mentality.

By the way, part of the CVCSC activity today is a press conference at 2 p.m., at Waterfront Hotel in Lahug.  Co-op movers and shakers like former senator and congressman Agapito “Butz” Aquino, chairman of the Philippine Cooperative Center; Cebu Congressman Pablo Garcia; party-list representatives as well as CDA execs led by board chairman Emmanuel Santiaguel and many others are expected to attend.

http://bit.ly/pH1Ufu

CDA urges power coops to register

By Elias O. Baquero

Friday, October 21, 2011

FOR their power rates to be tax-free, consumers should register their electric cooperatives with the Cooperative Development Authority (CDA).

This way, they become the real owners of their cooperatives and receive annual dividends.


This was the advice of CDA Executive Director Orlando Ravanera in a press conference yesterday.

He said electric cooperatives are cooperatives only in name and do not operate in a way that empowers the consumers and members.

Instead of being managed by the members, which is the principle of cooperativism, electric cooperatives are controlled by a few influential people, he said.

Former senator Agapito Aquino of the Philippine Cooperative Center said that because power is a service sector, electric cooperatives should be owned by the members and should be supervised and guided by CDA.

The electric cooperatives are supervised by the National Electrification Administration (NEA).

The electric cooperatives in Cebu are the Cebu Electric Cooperative (Cebeco) 1, Cebeco 2, Cebeco 3, Bantayan Electric Cooperative (Banelco) and the Camotes Island Electric Cooperative.

In Bohol, power distribution is undertaken by the Bohol Electric Cooperative (Boheco) 1 and Boheco 2, which are also run by businessmen.

Aquino said electric cooperatives should register with the CDA because while consumers appear to own the power utilities, they do not manage them.

In a press conference for the First Visayas Cooperative Congress at the Waterfront Cebu City Hotel yesterday, Ravanera urged power consumers to decide not to operate their electric cooperatives as private corporations.

He also said electric cooperatives should open their books of accounts to their members who are power consumers.

CDA 7 Director Alexander Patac said Republic Act 9520 or the Philippine Cooperative Code of 2008 gives electric cooperatives the option to register with the CDA, or with the Securities and Exchange Commission (SEC) as a private corporation.

If they choose to register with SEC, Patac said the electric cooperatives will become profit-oriented. They will also be required by the Bureau of Internal Revenue (BIR) to pay taxes, including the value-added tax (VAT), and as a consequence, power rates will increase.

But Concor Quisaot, assistant general manager for Cebeco 1, 2 and 3, disagreed.

“If they refer to tax exemption, they must consider that if sales of electric cooperatives are without VAT while its purchases have, the electric coop will be unable to recoup as its rate is on cash flow. It is disastrous and could lead to unimaginable inefficiency,” he said of proposals to register with the CDA, in a text message sent to Sun.Star Cebu.

In the press conference, Patac said RA 9520 mandates NEA to conduct a forum with the power consumers and inform them of their rights under the law.


NEA is also mandated to inform the power consumers of the advantages and disadvantages of registering with CDA or with SEC as a private corporation, after which, a referendum should be conducted.

The deadline for the registration of electric cooperatives with CDA is June 30, 2012.

Ravanera advised the consumers to work on the registration soon because the process takes time.

http://bit.ly/mSAseC

Coop confab kicks off

By Niña G. Sumacot/LPM (The Freeman) Updated October 21, 2011 12:00 AM

CEBU, Philippines - The Central Visayas Coop Solidarity Council composed of coop federations and unions in the region kicked off the First Central Visayas Cooperative Congress at the Waterfront Lahug yesterday.

The three-day event is held in cooperation with the Cooperative Development Authority.

Over 200 primary cooperatives and 500 coop leaders gathered for the event.

Part of the event is the launching of 2012 as International Year of Cooperatives as declared by the United Nations to highlight the contribution of cooperatives to global socio-economic development.

With theme “Transformative cooperatives advancing the people, planet, prosperity and peace for sustainable development,” the event aims to increase public awareness about cooperatives and their contribution to development.

The event also aims to promote cooperatives and encourage government to establish policies conducive to their growth and stability.

Today, topics such as the conversion of electrical cooperatives, which are not registered under CDA, will be tackled.

Only cooperatives registered under CDA can enjoy tax exemption privileges.

CDA chairman Orlan Ravanera said members of the Cebu Electric Cooperative (CEBECO) I, II, and III, Bantayan Electric Cooperative (BANELCO), and Camotes Electric Cooperative (CENELCO) are at a loss on their part.

Ravanera said that under the Republic Act 9520, electrical cooperatives will be charged with an additional 12 percent value-added tax apart from the tax that they are paying to the government. (FREEMAN)

http://bit.ly/oqeWn8