Sunday, July 26, 2009

Coop Target: Long Way Off the Mark


by ERNESTO T. SOLIDUM



Picture above shows Ms. Racel I. Gomez, Ms. Lilian R. Rey
and Mr. Jones R. Arieta.


"Cooperative Situation in Aklan" was discussed in the Kapehan sa Aklan weekly forum on July 18, 2009. Panelist were Mr. Jones R. Arieta, Coope-rative Development Officer, Ms. Lilian R. Rey, Provincial Cooperative Officer, and Ms. Racel I. Gomez, chairperson, Vermicast Producers Multi-purpose Cooperative of Numancia.

In his opening statement, Atty. Ronquillo C. Tolentino brought into focus the monumental achievement of Rochdale weavers of England in 1884 who triumphed over economic adversities. Founders Robert Owen and William King hardly knew that that cooperative movement will become precursor of the Industrial Revolution in Europe and the New World. Formidable spirit of self reliance, industry and strict adherence to democratic principles empowered people from all walks of life to embrace cooperativism said the former Vice Governor of Aklan.

"Cooperative movement was introduced in the Philippines by Dr. Jose P. Rizal while on exile in Dapitan", said Mr. Arieta. The nature of business was trading and financing of agricultural goods. Coo-peratives flourished to some extent but floundered with Dr. Rizal’s death and martyrdom.

Socio-economic impact of cooperatives in Aklan can be fairly doing well according to Mr. Arieta. Records show that in 2008, CDA registered cooperatives were 560 with 17,270 members. The total asset stood at P451 million; the capital build-up of P35 million; savings generation of P125 million; volume of business transitions of P650 million and employment generation of 2,875. However, due to mis-management and technical problems, out of 560 cooperatives, only 300 are functional today. At any rate, fallout can be a blessing in disguise since the office is seriously undermanned with only two personnel.

Mr. Arieta considers three factors vital to survival and growth of cooperatives in this country. They are; a) continuous education, b) committed leadership, and c) accountability.

Cooperatives Act (RA 7960) of the 1980’s has been duly amended by RA 9520 or the Philippines Cooperative Code of 2008. Major revisions are mandatory pre-membership education, no fixed term of office of BOD, no government employee in BOD and identified bookkeeper in its administrative staff.

Ms. Rey underscored that although 15 members can organize themselves into a cooperative, present thrust of CDA is for increased membership in existing cooperatives. This means mergers and fusion of capital build-up.

Ms. Gomez said that Numancia Vermicast Producers MPC won the One Town One Product (OTOP) category because of its vermicast product that is increasingly patronized by provincial customers. The agri-aqua business venture started with 23 backyard enthusiasts that were later registered with CDA in 2006. Presently, the firm is recipient of P437,500 grant from Plant Philippines which targets 250 farmers, aquaculturists and horti-culturists who will engage in organic farming.

African Night Crawlers (ANC) are voracious feeders of plant and animal wastes. It converts them into humus, a complete plant food. Earthworms contain 60 percent protein and are suitable as feed for aquarium fish and poultry. Other potential uses are on cosmetics and pharmaceutical products.

Issues and concerns are on high mortality rate of cooperative organizations in the country. Sen. Rodolfo Biazon revealed three years ago that of 560,000 cooperatives, only one fifth were active, the rest inactive due to insolvency and corruption. The case of the Cooperative Rural Bank of Aklan (CRB) with branches in Ibajay, Aklan and Pandan, Antique is a classic example that conspires against the noble intents of cooperatives.

Dr. Gabrielle Delfin, Dean, Institute of Economic and Policy Studies, NVC lamented over the loss of Samahang Nayon funds which were deposited with CRBA. "Remember these are hard earned savings of small farmers," Delfin stressed.

Presently, CRBA is under receivership of Philippine Deposit Insurance Corp (PDIC) but payment of insurance claims of individual depositors is limited to P250,000. Worse, progress on criminal investigation into mismanagement of funds are not transparent, court verdict may take decades thus prolonging frustration and agony of member-depositors.

Atty. Allen S. Quimpo said that, "there is popular demand for Akelco to register with CDA despite reticence of BOD to hold on to the cuttails of National Electrification Administration" (NEA). Cogent reason is public outcry against high power rates and being an inefficient service provider. Everybody agreed how-ever, that policy change could be effected once majority of the consumer-members of the power firm compels BOD to pass a referendum seeking immediate registration with CDA.

Cooperative develop-ment in the province although in existence for some 50 years is a long way off from its target of socio-economic emancipation for bottom third segment of the present population. Prudence dictates that quality, not quantity determines success in any human development. Accurate knowledge of the goals coupled with self imposed discipline by members of the cooperative can be pivotal point towards progress and stability.

Distorted view of cooperatives can only be reversed if the government is serious about meeting out justice for crimes committed. Confidence building is vital to rebuild shattered image. Inaction is likened to an ostrich burying its head in the sand when danger lurks. Facts eloquently speak for itself. /MP

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