EXECUTIVE ORDER NO. 96
EXECUTIVE ORDER NO. 96 -
IMPLEMENTING RULES AND REGULATIONS ON COOPERATIVE PROMOTIONS,
ORGANIZATION, DEVELOPMENT AND SUPERVISION BY LOCAL GOVERNMENT UNITS
WHEREAS, under Section 15, Article XII of
the 1987 Constitution, “the Congress shall create an agency to promote
the viability and growth of cooperatives as instruments for social
justice and economic development;”
WHEREAS, under Article 2 of Republic Act No. 6938, otherwise known as
the Cooperative Code of the Philippines, “it is the declared policy of
the State to foster the creation and growth of cooperatives as a
practical vehicle for promoting self- reliance and harnessing people
power towards the attainment of economic development and social
justice;”
WHEREAS, the Cooperative Development Authority (CDA) was created by
virtue of the enactment of Republic Act No. 6939 with the power to
register and regulate cooperatives and to adopt and implement national
development plans for cooperative development;
WHEREAS, the provisions and functions for the delivery of basic
services to the people have been transferred to the local government
units through Section 17 of Republic Act No. 7160, otherwise known as
the Local Government Code of 1991;
NOW, THEREFORE, for and in consideration of the foregoing premises, the
Cooperative Development Authority hereby promulgates the following
implementing rules and regulations:
Section 1. Scope. — These Rules and Regulations shall
pertain to the functions and powers of the various local government
units in relation to cooperatives operating within their area of
jurisdiction.
Sec. 2. Statement of Policy. — The local
government units shall contribute to the development of cooperatives in
their respective areas in accordance with the state policies on
cooperatives prescribed in R.A. No. 6936 and R.A. No. 6939, and such
cooperative development shall be coordinated by the CDA.
Sec. 3. State Policies on Cooperative Development.
— Local government units shall adhere to the following policies of the
State on cooperative development:
(a)
The role of the State in cooperative development is promotion; the aim
of cooperative promotion is the viability and growth of cooperatives as
instruments of equity, social justice and economic development.
(b) The State
recognizes cooperatives as autonomous associations organized for the
economic and social betterment of their members based on self-reliance
and self-management.
(c) The
National Economic Development Authority (NEDA) shall include the growth
and expansion of cooperatives as a major and indispensable component of
national development plans. All departments, branches, subdivisions and
instrumentalities of the Government shall promote the formation of
cooperatives under their respective programs by providing them with
appropriate and suitable incentives.
(d) The State
recognizes the cooperative sector as primarily responsible for the
institutional development of cooperatives. Accordingly, the State
recognizes the rights of cooperative sector to initiate and foster
within its own ranks cooperative promotion, organization, training,
information gathering, audit and support services, with government
assistance where necessary.
(e) Government
assistance to cooperatives shall be free from any restriction and
conditionality that may in any manner infringe upon the objectives and
character of cooperatives as provided in the Cooperative Code. The
State shall, except as provided in the Cooperative Code, maintain the
policy of non-interference in the management and operation of
cooperatives.
Sec. 4. Functions of the Local Government Units. —
The local government units, through the local chief executives, shall
perform the following powers and functions in cooperative promotions,
organization, regulation and development;
(a)
Appoint the local cooperative officer, at the discretion of the local
chief executive, in accordance with Sec. 487, Article 17, Title
Five, Book III of the Local Government Code;
(b) Assist in
the promotion and organization of cooperatives within their areas of
jurisdiction with the assistance of other established cooperatives;
(c) Assist the
CDA’s Cooperative Development Specialist in the evaluation of any
proposed cooperative’s economic survey, and requirements for
registration or non-registration;
(d) Assist in
the following regulatory powers of the CDA.
(1)
Collection of annual reports and audited financial statements of
cooperatives;
(2) Mediation
and conciliation of disputes between members of a cooperative operating
within their area of jurisdiction;
(3) Conduct
preliminary investigation through a committee jointly created by the
CDA and the local chief executive for violation of any provision of the
Cooperative Code, R.A. No. 6939 and the Implementing Rules and
Regulations, and recommend, the termination of its operation and
cancellation of the certificate of registration; and
(4) Monitor
the compliance of cooperatives with the rules, regulations, and other
issuances of the CDA including those reached through mediation and
conciliation conferences and as a result of decisions of the CDA.
(e)
Initiate and implement a program for cooperatives promotion and
development in line with the national development plan on cooperatives
within their jurisdiction;
(f) Provide
such information as required by the CDA as part of the research
projects undertaken by the CDA.
Sec. 5. Functions of the CDA. — The Functions of
the CDA shall be those set forth in the cooperative laws, and in
particular, with those set forth in the cooperative laws, and in
particular, with those of the local government units:
(a)
Conduct seminars and workshops for the training of local government
officials on cooperative promotion, organization and development;
(b) Develop
such operating and training manuals as are necessary for cooperative
promotion, organization and development as are required by the various
local government units;
(c) Provide
information to the local government units on the policies and standards
that have been formulated by the CDA concerning cooperatives;
(d) Assist the
local government units in the development of cooperatives in their
locality;
(e) Provide
the local government units with updated lists of cooperatives operating
within their jurisdiction; and
(f) Coordinate
the efforts of the private cooperative sector and the local government
units for more effective and systematic cooperation between
them.
Sec. 6. Memoranda of Agreement. — The CDA, through
its Extension Offices, and the LGU, upon request, may enter into
Memoranda of Agreement with individual local government units to fully
implement these rules and regulations and for other purposes not
inconsistent with either the Cooperative Code or the Local Government
Code. The secondment of any CDA employee to a local government unit may
be done in accordance with existing policies and rules and regulations
of the Civil Service Commission and the Commission on Audit.
Approved by the CDA Board of Administrators, Quezon City, Philippines,
January 12, 1993.
Approved by the Oversight Committee, Manila, Philippines, March 31,
1993.
DONE in the City of Manila this
8th day of June, in the year of Our Lord nineteen hundred and
ninety-three.
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