ILOILO City – Out of 2,125 registered cooperatives in Western Visayas, only 566 have been issued Certificates of Compliance (COC) by the Cooperative Development Authority (CDA) as of November 30, 2024.
Non-compliance can lead to dissolution or cancellation and eventual delisting, warned CDA Region 6 director Antonio Chavez Escobar.
To receive the COC, cooperatives must submit mandatory annual reports, including financial statements, cooperative annual progress reports, and social and financial performance audits.
“It’s unfortunate to see these numbers. The CDA issues the COC only after the submission of the required reports,” said Escobar.
Challenges in Compliance
Escobar explained that over 70% of the region’s cooperatives are classified as small or micro. Many of these cooperatives struggle to comply with report submissions due to the financial burden of preparing audited financial statements. They need to hire certified public accountants (CPAs) and bookkeepers, which involves significant professional fees.
While the CDA provides an online platform for report submission, reducing the need for travel to the CDA regional office in Leganes, Iloilo, compliance remains low among small cooperatives.
“The cost of hiring a CPA and bookkeeper adds to the difficulty for small and micro cooperatives. This explains why compliance is under 30% in this category,” Escobar said.
Steps to Improve Compliance
The CDA Region 6 legal team issues show-cause orders to non-compliant cooperatives. If a cooperative is found inactive and fails to assist its members, it may face dissolution or delisting from the registry.
However, Escobar remains optimistic, noting that the number of compliant cooperatives may increase as some are still working to meet requirements.
A COC offers numerous benefits. Accredited cooperatives can qualify for local government unit (LGU) programs, enjoy tax exemptions from the Bureau of Internal Revenue (BIR), and may even be exempted from national taxes.
As of November 20, 2024, the distribution of registered cooperatives in Western Visayas is as follows: Aklan – 221; Antique – 113; Capiz – 245; Guimaras – 48; Iloilo – 692; Negros Occidental – 806.
Among the 566 compliant cooperatives, the numbers per province are: Aklan – 57; Antique – 55; Capiz – 77; Guimaras – 25; Iloilo – 183; Negros Occidental – 169.
By type, registered cooperatives include: Labor Service – 5; Marketing – 118; Multipurpose – 1,057; Producers – 95; Service – 28; Mining – 3.
Strengthening Cooperatives
To prevent dissolution, the CDA Region 6 conducts mandatory training for cooperative management staff, officers, and members.
Escobar said educating cooperative stakeholders about their responsibilities is critical for sustainability.
“We need to ensure they understand their respective duties and responsibilities to keep their organizations viable and relevant to their members,” Escobar stressed./PN