A can of worms in the coop sector (part 2)

By: Malou Guanzon Apalisok March 05,2018 - 09:25 PM

APALISOK

The controversy arising from the case filed against Nutriwealth Multi-Purpose Cooperative NMPC and the series of Cease and Desist Orders issued by the Cooperative Development Authority (CDA) against the subject co-op has so rocked the sector that the issue will be taken up in today’s board meeting of the Philippine Cooperative Center (PCC). The PCC is the presumptive apex body of PH co-ops composed of federations and unions.

Apparently, the PCC has gotten hold of the CDA Executive Summary on the findings of the NMPC’s operations and having understood that the conclusions had dealt a mortal blow to the coop, PCC cannot accept that CDA will allow the dubious organization to go scot-free because that is basically the impact of the CDOs.

I also got a copy of the CDA Executive Summary report and I must say the team that examined the co-op did a thorough job. However, the CDO issuances would seem like a slap on the wrist of the coop who did not only violate its own by laws but also ignored pertinent laws in their business operations and even ignored the consent of the general assembly when it borrowed money from banks. Co-operative borrowings are the obligations of all members-owners. Even the grant of honorarium to certain officers does not bear the approval of the general assembly. NMPC’s board of the directors are also officers of coop-led corporations in brazen disregard of coop regulations on conflict of interest.

The list of infractions is endless and if one suspects the NMPC is using the coop as a tax shelter for the many corporations it has established, the same observation is mentioned in the summary report.

I wrote about the Nutriwealth MPC issue in a previous column, “A Can of Worms in the Coop Sector” (CDN, February 26, 2018 online edition) because as an advocate, I cannot be passive on a controversy that threatens the credibility of cooperatives.

A few hours after my article was shared through social media, NMPC Chairman Mr. Jay Galang asked me to give their side of the story referring to the post of Ms. Marian Anderson of the CDA Manila Extension Office who was part of the team that examined Nutriwealth (NW).

Ms. Rowena Plantilla, CEO of the Federation of People’s Sustainable Development of Cooperatives shared my article on her wall a few hours after it was posted online. It was in the thread of comments that Ms. Anderson gave her opinion.

According to Ms. Anderson, it’s not true NW challenged the findings of the CDA contrary to what I wrote. I think she needs to read an earlier statement of NMPC and note line #5 because that is the context of my comment.

Ms. Anderson added that during the 2-week examination, she found the co-op “willing to comply with the requirements of the law,” was “teachable, is only 7 years old but has lots of potentials if guided by the apex body.” She ended her comment with, “The public should not be deceived.”

Ranged against the gravity of the violations committed, such comments are irrelevant. As a regulator, her statements are inappropriate and cannot pull the wool over the eyes of coop investors. Let not the public be deceived by this dubious co-operative.

Ms. Anderson’s comments undermine the credibility and regulatory action of the very agency she serves and I’m wondering on whose side she is betting on. The regulatory body that is supposed to enforce the law without fear or favor or the subject coop censured for the pile of violations it has committed? I heard NMPC continues to operate a Nutricafe outlet in Manila despite the CDOs. Such disrespect for lawful authority can only be blamed for the apparent influence of the coop over some CDA officials.

And what is the position of the CDA leadership under Chairman Orlando Ravanera?

I’m confused because in September last year the agency acted swiftly to censure a coop that promised to distribute cash for members ostensibly through the provenance of the Marcos’ ill-gotten wealth. Chairman Ravanera then was livid to learn that One Social Family Credit Cooperative dangled P10,000 monthly to members if they enrolled with the coop for a fee of P30.00. In a swift move, he caused the issuance of a CDO against the Cavite-based coop for alleged scamming activities. An investigation was supposed to follow his stern warning.

How true are reports that while CDA was examining NMPC’s operations, the agency solicited sponsorship for the conduct of the ASEAN Cooperative Business Forum held in Manila last January 2018?

I am heartened by the vigilance of the apex body because the sector cannot be passive while the erring organization uses the coop cover to suit its own agenda. PCC should act swiftly in behalf of all primaries. This is an acid test for the apex body and I hope it rises to the challenge, defend the movement and rally behind the cause of authentic cooperatives.

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TAGS: coop, sector

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