Huwebes, Agosto 4, 2011

Joint IC-CDA-SEC Memorandum Circular “Informal Insurance”

CDA is consistent in improving the operation of the cooperatives because of the
guidelines they are implementing. Together with these guidelines are the provisions for the betterment of cooperative’s member and stability of the cooperatives.

            One of these provisions is about the informal insurance or insurance like activities by the cooperatives. Based on Joint IC-CDA-SEC Memorandum Circular No. 01 – 2010 entitled “Defining Government’s Policy on Informal Insurance Activities” that entities/cooperatives undertaking or will undertake insurance activities are required to comply with the provision of the insurance code including the requirement of securing a Certificate of Authority from the Insurance Commission. This provision defines insurance activities as activity wherein contributions/premiums are regularly collected prior to the occurrence of a contingent event.

            But what is really the objective of having insurance or being insured and how does it help? Insurance company takes the risk of large but uncertain losses in exchange for small premium. So it gives a sense of security, which is a real gift to a business man. If all uncertainty could be removed from business, income would be sure. Insurance removed/reduced many uncertainties and to that extent is profitable. Insurance companies also spend large sums of money with a view to finding out the reasons of fire accidents, theft and robbery and suggest some measures to prevent them. They also support several medical programs in order to make the public safety minded. Without such losses preventive activities of insurance companies, the chances of loss would have been greater than they are at present days.  

            This provision terminate informal insurance or insurance like activities within one year from the effectivity of this circular which is 15 days after publication in a newspaper of general circulation in the Philippines, but due to various request of certain sectors to be given ample time to formalize their informal insurance this provision was extended wherein the period which entities shall formalize and terminate their informal insurance is extended until December 31, 2011.

            Another provision regarding the informal insurance was also released last June 25, 2011 to give guidelines on the treatment of funds collected from informal insurance activities. This provision states that “Pools of Funds accumulated by entities from the operations of unauthorized insurance or insurance like activities shall be used exclusively for the benefit of the contributors who will continue to be covered by insurance or insurance like contracts with authorized providers”.

            Few people realize the importance of life insurance and most people do not understand the importance of life insurance until they have lived through a tragedy of love ones death and the impact of inadequate insurance coverage. People often feel that to talk about death is to invite it into their lives – it’s the ‘knock on wood’ type of superstitious thinking. Death doesn’t discriminate like that, and bad things do happen to very nice people. The key to dealing with the issue of unforeseen accident, injury or death is to focus on the impact to your loved ones if you were suddenly gone. Immediately, you realize that it isn’t actually about you and your zest for life – it’s about protecting the financial future of your family.

            The objective of this provision is to protect the general public from unsafe and unsound insurance and informal risk protection schemes and the procedure to formalize an informal insurance is either secure a Certificate of Authority to the Insurance Commission or make a contracts to an authorized insurance provider.

Nothing is more uncertain than death’s timing and nothing is more certain than Life Insurance!

Miyerkules, Agosto 3, 2011

DEC MPC BUKAS SAMPAGUITA FARM PROJECT: BAYANIHAN NG PAMAHALAAN AT KOOPERATIBA ni: Briccio C. Rubiano

MOA Signing with LGU-Dinalupihan headed by Hon. Mayor Joel Jaime P. Payumo and the Sangguniang Bayan headed by Vice-Mayor Leonardo E. Cruz held last May 9, 2011 at the Sampaguita Farm, Brgy. Pagalanggang, Dinalupihan, Bataan.
Isang matagumpay na proyekto ng DEC MPC o Dinalupihan Economic Community MPC na nagkaroon ng magandang resulta ay ang kanilang BUKAS (Bango ang Ugat ng Kabuhayang Sagana) Sampaguita Farm Project. Ito ay nagsimula noong May 9, 2011 nang magkaroon ng MOA (Memorandum of Agreement) Signing ang Kooperatiba at Pamahalaang Lokal ng Dinalupihan sa pamumuno ni Kgg. Mayor Joel Jaime P. Payumo, Sangguniang Bayan Members ng Dinalupihan at ng Dimalupig Lions Club ng nasabing bayan upang tamnan ang bakanteng lupa ng Pamahalaang Lokal sa Ceramic Plant sa Barangay Pagalanggang ng nasabing bayan.

Isa sa mga naging panauhin ng nasabing MOA signing ay ang Hepe ng PCDO (Provincial Cooperative Development Office) na si Gng. Azucena E. Sugatain na siyang nagpanumpa din sa mga bagong halal na Board of Directors o Lupon ng Patnugot. Siya ay nagsalita din tungkol sa ilang Coop at BIR updates.

Ang nasabing MOA ay may termino o Coverage Period na sampung (10) taon at ito ay renewable. Ito ay may implementation period na six (6) months o anim na buwan pagkayari ng signing ng MOA. Ito rin ay may Moratorium period na unang anim na buwan pagkayari ng pagtanim ng mga cuttings. Ang termino ng pagbabayad ay nagkakahalaga ng P30,000.00 o tatlumpong libong piso taun-taon sa unang (3) tatlong taon at subject for evaluation sa ika-apat na taon sa pagitan ng Pamahalaang Lokal at ng nasabing koop. Ang pamamaraan ng pagbabayad o mode of payment ay quarterly. Ang (5) limang porsiyento ng taunang kita ng proyekto ay dadalhin sa Community Services at Educational Fund ng Kooperatiba.

As of July 15, 2011, ang koop ay may kabuuang benta o Gross Sales na P41,652.50. Ang kanilang tagapitas ng bulaklak o pickers ay magkakaroon ng insentibo na umabot na sa halagang P12,086.35 at ang kita ng koop ay umabot na sa halagang P29,566.15. Ito ay patuloy na lalaki pa kasabay ng paglaki ng mga nasabing mga halaman. Sa kasalukuyan, ang koop ay may dalawang (2) Full time Farm Employees at anim (6) na part time pickers ng bulaklak at sila ay kikita kada tabo ng bulaklak na kanilang mapipitas.

Sa pagtutulungan ng mga Board of Directors, Management Staff at mga regular na kasapi, sila ay naglalaan ng kanilang panahon at sama samang nag-aalaga sa kanilang Sampaguita Farm Business upang lalo itong lumago. Tunay na buhay ang spirit ng Cooperativism sa DEC MPC! Mabuhay ang mga Kooperatiba!

Miyerkules, Hunyo 8, 2011

IWAHORI MPC gets SME Star Award by: Azucena E. Sugatain


The Micro Small Medium Enterprises (MSMEs) are the backbone of the Philippine economy contributing employment and enabling the economy to be bullish with cooperatives acceptably regarded as MSMEs. The MSMEs represent 99.6 percent of all businesses registered in the country and employ 61.2 percent of the total labor force. The roles of MSMEs are important in dispensing new industries to the countryside and providing gainful employment. In fact to encourage sustainable growth and development of MSMEs in the country, the government has launched the SME Star Program. The program also aims   to support outstanding enterprises that have shown the most remarkable achievements in growing their business into becoming globally competitive.

In the province of Bataan, one cooperative is an example of a MSME that positively help local economy. The Iwahori Multi-Purpose Cooperative was recently awarded the SME Star Award in the Elite Medium Category in the provincial level, of which having not less than P15 million assets but not more than P100 million. The award highlighted the role of the cooperative in providing livelihood and igniting economy in the province. In the same awarding ceremony, other enterprises awarded in the provincial level were: in the Rising Micro Category, Five Brothers Category; Rising Small Category, Alion Kapit Bisig Sea K Association; in the Elite Micro Category, Beakris House of Goodies; and Elite Small Category, Amanda’s Marine Products.

The Iwahori MPC competed in the regional level and was adjudged winning the SME Star Award in Central Luzon. The awarding ceremony was scheduled at Stostenberg Hotel, Clark Pampanga on June 7.            
     
But Iwahori MPC is not new to receiving plaudits. Among others, Iwahori MPC’s awards and citations were: one of the 8 millionaire cooperatives in the province in 2003; recipient of Excellent Rating (LBP Operation Review 2009 -2010); and best in community linkages and services (2009 Coop Month Celebration-Bataan). Its accreditations include coming from: Sangguniang Bayan  Mariveles, Bataan Land Bank of the Phils.( LBP ), AGFP/PMO –(Special program for Farmers),  and Phil-Health/SSS/DOLE/Pag-ibig Fund/BIR.

Looking back, 8 years had passed since rank and file employees of Iwahori  Phils. Inc. organized a cooperative among themselves. The Iwahori Employees Credit Cooperative (IECC) was born as it was officially registered with Cooperative Development Authority (CDA) under Reg. No. MLA - 2291. From the initial capital of P160,000.00, it had grown to P5.4M in assets with  223 regular members in  1999. Unfortunately, due to the unexpected closure of the Iwahori Philippines Inc in January 2000, employees were not paid of separation pay, hence their loan receivables amounting to P4.5M were not collected. 

“Back to Zero” in 2001, they withdrew their savings/capital amounting to P212,0000.00  from their Apex cooperative  - the Phil Federation of Credit Cooperative and started the cooperative operation anew amending their bylaws from IECC to Iwahori MPC, from credit   to multi-purpose cooperative, and from institutional to  residential or community-based since the institution is no longer existing. And with the amendment of RA6938 to RA 9520 – the Philippine Cooperative Code of 2008, the cooperative was reregistered with CDA in Oct 6, 2009 under Reg No. 03000277.
          
Not to mention, Iwahori MPC has likewise benefited from the support of Governor Enrique Garcia, Sangguniang Panlalawigan and Municipal Government of Mariveles, Bataan under the leadership of Mayor Jessie Concepcion. Cooperative development in the province has been vigorously been pushed to strengthen local economy. The provincial government of Bataan has been pouring massive support to cooperatives here to speed up local economy.

And for the past years, cooperative development in Bataan has reached greater new heights. Provincial Cooperative Development Office (PCDO) is everyday doing its mandated tasks of empowering cooperatives in the province.  Programs like building the capability through education, assisting on technical needs, loan assistance, and monitoring operations have been implemented in the province that resulted to the success of many cooperatives in the province including Iwahori MPC.

*contact us in (047) 237-4040 /  (047) 237-4726 or e-mail us in pcdo@bataan.gov.ph and visit and like our Facebook page "PCDO Bataan (PGB)"

Lunes, Mayo 30, 2011

Bataan Cooperative Development Program Media Exposure

     Acknowledging the importance of media exposure in stirring the interest of the public in the field of cooperative involvement, the Provincial Cooperative Development Office (PCDO) will have this regular column to be known as “COOP UPDATES & More” in the BPC Koop Vision to provide cooperatives in the province the opportunity to inform the readers and other stakeholders on the value of cooperative development in helping the local economy through its services, benefits and vital activities.

     Cooperatives offer an effective means for people to raise their living standards by accessing decent work opportunities, savings and credit facilities, social services as well as education and skills training. Members gain self-reliance and self-esteem by being part of the cooperatives. Through the years, a number of Bataan cooperatives were able to positively make a difference not only in the economic well-being of its individual members but in the development of the community or locality where they operate. These cooperatives have successfully transformed the lives of most Bataenos, empowering them economically and making them productive members of the society. PCDO fully supports the promotion of cooperatives documenting its rise from humble beginnings to a great niche in the society of today.

     For program implementation, the province thru the PCDO forged a partnership with the Bataan Press Club MPC being the only organized media cooperative in the province. This newspaper, the BPC Koop Vision newsweekly is widely circulated in the province and in Region III as well. This column, the “COOP UPDATES & More” hopes to inform the readers about the concept of cooperativism and spread inspiring stories of successful cooperatives in the province. So watch out for the succeeding and interesting features in this column about the cooperative movement in Bataan!


*contact us in (047) 237-4040 /  (047) 237-4726 or e-mail us in pcdo@bataan.gov.ph and visit and like our Facebook page "PCDO Bataan (PGB)"

CEmBa MPC: 5 Years of Growing Success By: Butch Gunio

    For the past years, cooperative development in Bataan has reached greater heights with the support of the provincial government through the leadership of Governor Enrique Garcia and the Sangguniang Panlalawigan. Cooperative development in the province has been vigorously been pushed to strengthen local economy. The provincial government of Bataan has been pouring massive support to cooperatives here to speed up local economy.
         
    One of the fastest growing cooperatives in the province is the Capitol Employees of Bataan Multi-Purpose Cooperative or CEmBa MPC. In 5 years, the cooperative enjoyed unprecedented growth and positively changed the lives of its members.  And just recently, the cooperative held its 5th General Assembly at the Bulwagan ng Bayan  capitol compound in Balanga City on April 1, 2011.
   
    The Guest Speaker, Mr. Bustamante, Manager of BNHS MPC and Chairman of the Bataan Cooperative Bank, gave a warm and inspiring message on the stability and resilience of cooperatives in times of crises and the significant role CEmBa MPC plays in the lives of capitol employees but and its impact to the cooperative movement in the province.


    Chairman Zena Sugatain discussed the program mechanics and launched the newest & 7th loan window the “GROCERY LOAN” to be availed thru loan coupons up to P2,000, 5% interest, payable in 1 month.


    The General Assembly was attended by 272 members who were very happy & satisfied on the business operations of the cooperative as the annual reports were presented as follows:


    Five years have passed and CEmBa Multipurpose Cooperative still stands strong and more equipped to serve.  It is said that people make history, and the history of CEmBa MPC is no different.  The five years of CEmBa MPC existence have been made productive and successful because of the officers, management staff and its members. Hearts are warmed with individual stories of how CEmBa improved the quality of lives of its members.  Testimonies on how the cooperative benefited the members, how CEmBa’s loan services came to the rescue in times of needs, how belt tightening resulted to increase in capital, how hard earned money infused resulted to Capital Build-up, how loans are paid promptly so as not to be delinquent and keep others in the queue, this made CEmBa part of every member’s dream!


    For fiscal year 2010, CEmBa has remained safe and sound in spite of the global economic crisis.  In the environment,  being good is not enough, thus  the  Board of Directors, in partnership with the Management, have carefully kept the trust , exerted best efforts and worked hard to create sustainable growth and offer excellent services. 


CEmBa MPC accomplished the following as of the report period:
1.Crafting of the 3-year development plan for 2010 -2013;
2.Policy Review and Amendment of By Laws in conformity with RA 9520;
3.Orientation on IRR of RA 9520 for Directors and Management staff;
4.Approval of Three Million credit line with LandBank, a standby fund in case of emergency;
5.Conduct of CEmBa Roadshow program & massive dissemination of CemBa program and services;
6.Filing of Estafa case against former Manager Jacquiline Reyes for the unturned over P240,000.00 during the Fiscal year 2008.
7.Upgrading of salaries of CEmBa employees;
8.Secure Tax Exemption Certificate from BIR, for CEmBa to be tax exempt on income tax;
9.Buying out shares of cancelled/dissolved cooperatives with Bataan Cooperative Bank up to Two Hundred Thousand Pesos shares at 50% discount;
10.Holding of CEmBa Christmas Party at Lou-is Restaurant and giving away Noche Buena package to all members.


The cooperative registered a remarkable increase of 69% in assets size compared to the previous year from P4,162,031.78 to P7,021,692.30,  P 3Million richer from last year. Meaning, the members are the owners of a P 7Million business!  It still holds the title of the Fastest Growing Employees cooperative in the province. Because the MEMBERS are OWNERS, excess payment on goods bought and services availed are not construed as profits but are returned to the members through DIVIDENDS and PATRONAGE REFUND.  Now it can be told that one has reasons to be happy with CEmBa? These very benefits dramatize the slogan “SA CEMBA PRODUCTIVE KA!”


    This year the cooperative had a full grasp of Republic Act 9520 (Philippine Cooperative Code of 2008). Though regulatory requirements become stiffer, it’s time to shape up and be internationally competitive!  There are 14 trainings directors, committees and officers must undergo to comply with the regulatory requirement. To those elected officers, they are to sign a commitment form to undergo necessary trainings. These trainings will be of great help to the cooperative. 


The Credit Committee takes pride to present a clear evidence of how members have internalized the vision and mission of the cooperative and were served through the volume of loans totalling to P 8,105,773.69 which were carefully evaluated and approved by the Credit Committee for the Fiscal Year 2010 as follows:

Salary Loan MPL 20%
Php 6,497,000.00
Salary Loan 18%
603,000.00
Quick Cash Loan (regular & job order)
484,400.00
Appliance Loan 20%
91,373.69
Business Loan 18%
370,000.00
Rice Productivity Loan 18%
60,000.00
TOTAL
Php 8,105,773.69

The volume of loans for FY 2010 released is 162% higher than that of FY 2009 of P3,093,000.00.  New Loan Windows were opened in FY 2010, making into a total of 6 Loan windows available for all the members of the cooperative.     Likewise,  the Quick Cash and Salary Loans for associate members (JOB ORDER EMPLOYEE OF PGB) were also amended to suit the growing demands of members and present circumstances giving birth to Back to Back loans granting as much as P10,000.00 payable in six (6) months through salary deductions. All loan policies were duly approved by the Board of Directors and were implemented in FY 2010.
          The cooperative thank and praise the Lord Almighty for the year that was.  Despite of the many challenges and threats that came (specially the massive collection of BIR to cooperative and the New Cooperative Code particularly known as RA9520) CEmBa MPC is still growing not just in terms of membership but as a whole.
A. Financial Highlights
Yr Ended
2010
2009
Inc/Dec
%
Gross Surplus
2,056,664
1,663,300
1.24
24%
Total Op. Exp.
1,143,001
789,578
1.45
45%
Net Surplus
921,162
888,055
1.04
4%

At Year Ended (In Pesos)
Yr Ended
2010
2009
Inc/  Dec
%
Total Assets
7,021,692.29
4,162,031.78
1.69
69%
L/R
5,615,725.42
2,866,478.69
1.96
96%
Paid-Up
2,666,390.91
1,797,663.28
1.48
48%
ISC Payable
386,888.43
372,983.28
1.04
4%
PR Payable
257,925.62
248,655.52
1.04
4%

B. Non Financial Highlights

2010
2009
Inc/Dec
%
Total no. of members
341
245
1.39
39%
          The Treasurer of Capitol Employees of Bataan MPC is tasked to protect the ‘MONEY MATTERS” of the Cooperative.  Aside from lending, CEMBA also accepts savings and time deposits from its members. As of Dec. 31, 2010 savings deposits of members amounted to  P 293,104.51 and time deposits amounting to P  624,520.55.  CEMBA is also maintaining its checking account with Landbank Balanga and savings account with Bataan Cooperative Bank with the following balances as of December 31, 2010:               

LBP—Balanga
Php  186,429.92
Bat. Coop Bank
55,466.41
TOTAL
Php 241,896.33




              As CEMBA continue to progress, many employees of Bataan Capitol are willing to subscribe and register as members of CEMBA.  This year there are 341 members of CEMBA as of Dec. 31, 2010 and last year there are only about 245 members, a 39% increase from last year.

    As of Dec. 31, 2010 CEMBA has 5,513 subscribed capital shares which is much higher than its authorized share capital of 5,064. The subscribed capital share and paid up capital share are as follows:

S.S.C.@ 500 par value
5,513
Php 2,756,500.00
Paid up Share Capital
5,332
2,666,391.21

          In the area of performance evaluation, the Audit Committee plays an important role.  One of the duties of the Audit Com is to point out to the Board of Directors, Officers and members how the cooperative’s  operation were handled based on performance standards.  Likewise, the employees’ cooperative hired the services of an independent CPA to audit its operations for FY 2010. The BOD adopted the COOP PESOS to measure its financial performance. For FY 2010, the cooperative has an over all rating of 71%.

Observation & Recommendations:
1. Membership Expansion-the present no. of members is only 34% of the total employees of BPG. The Board should strive to increase its membership but should be thoroughly screened to ensure that they would become assets instead of becoming liabilities;
2. Capital Expansion-The Board and Management should review members’ subscription to determine those who have not yet fully paid their subscriptions. To maximize benefits, members should be encouraged to have additional subscription.
3. Increase in Patronage-members should patronize the services of the coop.
The Body also unanimously approved the P1.2M budget to finance the operations of the cooperative for the year 2011. Election of Officers

Newly elected officers, namely: Board of Directors: Evangeline Calma, Godofredo De Guzman, and  Imelda Inieto; Audit Committee: Rosalie Pantig, Nora Siasat, and Melchor Cui;

Election Committee:  Briccio Rubiano, Guillermo Coronel, and Ariel Masamoc; and  Credit Committee: Bienvenido Paguio Jr., Zenaida Ramos and Dorina Coronel were presented to the Body. In an interview with them, they said “it is our honor to serve the members of CEmBa MPC. There maybe challenges in the performance of our duties, but with  the  strong cooperative spirit , we will have the necessary resolve to conquer whatever we face in the future!”

Towards the end, A total of P644,814 dividends and patronage funds were distributed to members

          In the lighter part of the general assembly, Bingo Socials grand winner Josephine Estrella went home with P5,000.00 in the. Other consolation prices like rice and cash were also given. 

          The CEmBa MPC has gone a long way since its establishment 5 years ago. The cooperative success story highlights the value of employees’ empowerment thru cooperativism. 

          With the continuous support and trust of the members and the institution under the administration of Gov. Enrique T. Garcia, Jr., the cooperative will continue to protect its integrity and credibility and will remain faithful and steadfast in the journey towards the attainment of its vision and mission. As CEmBa MPC move forward, re commitment to the vision is relevant and thank God for His faithfulness and guidance. TO GOD BE THE GLORY!!! More power and Mabuhay to CEmBa MPC!!!




*contact us in (047) 237-4040 /  (047) 237-4726 or e-mail us in pcdo@bataan.gov.ph and visit and like our Facebook page "PCDO Bataan (PGB)"

Bataan Execs Visit Billionaire Cooperative in Dumaguete City by Zena Sugatain

     Cooperative development plays vital role in the nurturing growth and partnership in the society. In the province of Bataan, there is relentless pursuit to expand the cooperative development so as to touch positively the most number of people.  
      Recently, Bataan executives Sangguniang Panlalawigan (SP) members Ed Florendo, SP Chairman of the Committee on Cooperatives, Aris Gaza, SP Co-Chairman of the Committee on Cooperatives, Jovy Banzon, Dante Manalaysay, and Guding Ferrer visited Dumaguete Cathedral Credit Cooperative (DCCCO) in Dumaguete City, Negros Oriental.  
      Cooperative Development Authority (CDA) Bataan Officer Edith Capili,    the officers of the 46 cooperatives, and this columnist joined the visit to DCCCO.  
      The DCCCO boasts of having about P1 Billion networth-one of the richest cooperatives in the country, and offers all types of loan from A to Z.  It has four-story main office building and four branches, one of which is located in Siquijor province.  The cooperative has 42,000 members transacting through the cooperative’s own Automated Teller Machine.              
     It is worthy to note that DCCCO has survived tough times. The DCCCO was unwavering in dealing with the countless financial challenges that were brought about by the slowdown of economic activity in the past.            
    The visit of Bataan executives and cooperative officers aimed to fully understand how DCCCO managed to achieved its status of becoming a billionaire cooperative with the idea of replicating its successful practices especially now that the development of the cooperatives in the province is on strides.          
     The visit highlighted the importance of government officials and cooperative officers understanding their role in the development of cooperatives in their areas.        
      In essence, the DCCCO has set benchmark for other provinces to follow with regards to cooperative development. 
      Earlier, representatives of local government units (LGUs) in the province that included municipal cooperative development officers, Sangguniang Bayan chairman of the committee on cooperatives of the respective LGUs, and representatives of concerned agencies DTI, DOST, Office of the Provincial Agriculturist, Land Bank of the Philippines (LBP), and CDA, also attended a significant cooperative event.                   
      So far, the provincial government through the leadership of Governor Enrique Garcia has been vigorously pushing for the development of cooperatives in the province to strengthen economy. The provincial government of Bataan has been pouring massive support to cooperatives here to speed up local economy.          
      It has been stressed by Bataan cooperative officials that cooperatives must be strongly challenged to expand financially thereby strengthening financial capabilities. In fact, a cooperative development framework and roadmap has been adopted in the province.            
      Programs like building the capability through education, assisting on technical needs, loan assistance, and monitoring operations are being implemented to empower Bataan cooperatives.         
      In the program of loan assistance, the LBP is the primary partner of the provincial government and PCDO.    
      The Provincial Cooperative Development Office (PCDO) is everyday doing its mandated tasks of empowering cooperatives in the province.           
      However, the experiences of DCCCO can be wisely replicated to further ensure stability and sustainability of the cooperatives in Bataan, and be able to move progressively forward and break new grounds.            
      Governor Garcia and the SP members are indeed fully supporting the advocacy and programs of the PCDO and all the cooperatives in the province. 




*contact us in (047) 237-4040 /  (047) 237-4726 or e-mail us in pcdo@bataan.gov.ph and visit and like our Facebook page "PCDO Bataan (PGB)"