Cooperatives Losing Favor With Aklanons

by ERNESTO T. SOLIDUM

Cooperatives development in the province of Aklan could be a disaster as resuscitation efforts to revive the majority of the outstanding cooperatives is beyond help. Records from Provincial Cooperatives Development Authority (CDA) headed by Mr. Jones Arieta revealed that as of March 22, 2010 only 71 or 11.8 percent of the 597 have updated their registration status.

Standard operating guideline requires that all bonafide cooperative organizations should submit their annual financial statements duly certified by a public accountant. Deadline for their submission on the current year is March 22. Failure to comply means psychological defeat on the war against hunger and deprivation which grip 41 percent of the total population.

Heavy casualties come from municipalities of Ibajay, Buruanga, Makato, and Nabas. Among the reasons listed are financial and technical problems easily solved by open mindedness and dialogue. Unfortunately, this is fully exploited by parties concerned.
Meanwhile, Kalibo tops the list of active coops to date with 18. A far lean number is seen in the following areas: Lezo – 3, Libacao – 2, Madalag – 8, Malay – 9, Malinao – 4, Numancia – 6, New Washington – 3, Tangalan – 2, Altavas – 4, Balete – 3, Buruanga – 6, and Ibajay – 2.

The closure of the Cooperatives Rural Bank of Aklan (CRB) in 2008 triggered domino effect of struggling cooperatives where coop majority conducts financial transactions. It should be recalled that the present status of the bank is under receivership of the Philippine Deposit Insurance Corporation.

Organizational dysfunction could also be attributed to lapses in institutionalizing safeguards from CDA particularly the hiring of financial/technical personnel. Presently, only two staff members and a clerk run the provincial office since the time when majority of the listed coops were registered in 1991.

Critical support services on promotion, development, and research components are provided by Provincial Cooperative Office (PCO) under the Office of the Governor. Ms. Lilian R. Rey, Chief of PCO however, is simply overwhelmed by huge number of unsupervised cooperatives.

Ms. Edna S. Villanueva, Project Development Officer says they remain committed to strengthen the Provincial Government Employees Development Cooperative since they organized it in 2007. The 593 members had a paid up capital of P1.5 million.

On high mortality rate of cooperatives, Mr. Jones Arieta said that all existing coops are governed by the principle of subsidiary where their management functions are independent, self regulating, and goal oriented. With the closure of CRB, Arieta disclosed that other commercial banks could be tapped by its Board of Directors.

RA 9520 created the CDA. It was signed into law in 2008 purposely to uplift the socio-economic condition of people in the rural countryside. A universal principle is we reap what we only sow. Clearly, anger and frustration could only be seen on the faces as dreams are smashed by human greed. /MP