Leaders from the cooperative movement and officials from government agencies expressed support to the Philippine Cooperative Code of 2008 amendments to further strengthen the cooperative sector.
The Coop Chamber and CLIMBS Life and General Insurance Cooperative, together with various government agencies attended the second Senate Committee on Cooperatives hearing on March 11, 2024. The hearing was chaired by Senator Imee Marcos and was jointly held with the Senate Committee on Constitutional Amendments led by Senator Robin Padilla and the Senate Committee on Ways and Means Committee headed by Senator Sherwin Gatchalian.
Agencies that attended the hearing included the Department of Agriculture, Cooperative Development Authority, National Anti-Poverty Commission, Department of Migrant Workers and Bureau of Internal Revenue.
CLIMBS chief executive, president and founding trustee Noel Raboy, NOVADECI director and Coop Chamber trustee Marlene Sindayen, CLIMBS vice president for sales Renan Diaz and Coop Chamber executive director Edwin Bustillos actively participated in the deliberation of House Bill 9673 authored by Representatives Nicanor Briones, Felimon Espares, Speaker Martin Romualdez and other members of the House of Representatives and three Senate bills.
These include Senate Bill 418 authored by Marcos, Senate Bill 2378 of Senator Jinggoy Estrada and Senate Bill 2480 of Senator JV Ejercito.
Marcos raised important points on the proposed amendments, particularly 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.
Raboy said Marcos appeared to agree with the position of CLIMBS, NOVADECI and the Coop Chamber.
The Coop leaders led by Raboy said that while they are open to 40-percent share capital holdings in a federation, the share voting should not be allowed.
He said the universally accepted principles of cooperation provide that that each member has an equal say and vote in the decision-making process. He said that even at other levels, in such a democratic manner, the one member, one vote should apply.
Raboy said this is the difference between a cooperative and a corporation, to which Marcos agreed.
CLIMBS and the Coop Chamber said they believe in the 6th Cooperative Principle: cooperation among cooperatives.
The Coop Chamber said that cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
It said, however, that the details of the foreign cooperatives’ investment, participation, or membership should be left to the discretion of the local federation, to which Marcos agreed.
Marcos expressed support for the increase of the current P10-million cap on accumulated reserves and undivided net savings. She cited the need to raise the cap, especially for agricultural cooperatives.
This was one of the reasons why President Ferdinand Marcos Jr. initially wanted the Code to be amended – to support farmers through cooperatives.
Meanwhile, Sindayen expressed gratitude for the Senate’s support in continuing the tax exemptions of cooperatives. She said cooperatives should not be required to provide their tax identification number during the application and renewal of their certificate of tax exemptions.
Rep. Emon Espares and the CDA supported her stance, and Marcos clarified the matter, ultimately agreeing with Sindayen’s position.
Marcos called the attention of other cooperatives to submit their position paper, including the government agencies invited as there are other sections or provisions in the proposed measures that needed to be discussed.
Marcos said the House and Senate committees should finish a report on the amendments of RA 9520, in time for the next State of the Nation Adress by the President on July 22, 2024.