CDA calls on Bukidnon electric coops to register

MALAYBALAY CITY – The Cooperative Development Authority calls on the the management of the two power distributors in Bukidnon, namely First Bukidnon Electric Cooperative (FIBECO) and Bukidnon Second Electric Cooperative (BUSECO), in its reiterated campaign for  these Electric Cooperatives (EC) to register under CDA.An official of CDA, Edwin Pelosas, Cooperative Development Specialist of CDA 10, along with his team, appeared to the Sangguniang Panlalawigan on September 21 to enlighten the possession of CDA on EC’s conversion to a real cooperative, from that of the National Electrification Administration (NEA).

Pelosas told provincial board members that the EC’s registration to the CDA would entitle them to privileges and benefits, as well as encourage efficient functioning within the agency. For one, absolute tax exemption including on the Real Property Tax once will be extended to the coops once they will be converted to a real cooperative under their office.

“Aside from absolute tax exemption, once an EC converted under CDA, power rate would be lower and genuine ownership of Member-Consumers will be acknowledged. Each member will be given patronage credit and dividend annually. They could also create hospitals, schools, open credit and savings to members and others,” Pelosas added.

He said that out of 119 EC’s nationwide, 14 of them were converted under CDA but none of them were from Region 10.

“None of the 14 cooperatives converted under CDA experienced difficulty in their operations,” Pelosas said.

The CDA official also clarified that their concern is only the organizational aspect of the coops but the operation and the technical side are still under the supervision of NEA and that an EC under CDA could still received grants and donations.

When asked about any possible collapse of any EC, Pelosas said it’s a remote possibility because EC’s today are managed by experts and professionals.

A referendum, however, is needed before any EC steps in to the process for its conversion under CDA. The law requires that 20 percent of the members of the coop be in favor, and will be manifested in the referendum, Pelosas added.

As of press time Bukidnon News has yet to get the comments from Fibeco and Buseco. (Bukidnon News)

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One Response

  1. Cooperative Development Authority ( CDA) has “NO LEGAL AUTHORITY” to call Electric Cooperative registered with the National Electrification Authority ( NEA) by virtue of Presidential Degree 269 being a Non-stock, non-profit institution. In connection with the provision of the EPIRA LAW giving electric cooperative the option to convert into a stock cooperative under the Cooperative Development Act or a stock corporation under the corporation Code.
    1. No less than the Former President of the of the Philippines, President Gloria Macapagal Arroyo, by way of the Administrative 0rder No.112, directed the National Electrification Administration to take “FULL” and “SOLE” Authority and “RESPONSIBILITY” in the conversion of electric cooperatives into stock cooperatives. This Administrative 0rder renders moot and academic any and all actions, issuances and implementing rules and regulations, or parts thereof, issued by the cooperative development Authority which are inconsistent with said residential order.

    2. The aforementioned option granted in Section 57 of Republic Act No.9136 should not be interpreted as limiting the choice of the electric cooperatives (EC) to only two ( 2 ) conversion choices namely:

    a) stock cooperative under Cooperative Development Act; or
    b) stock corporation under the Corporation Code.

    Section 57 should be read and understood in its entirely:

    ” Electric cooperatives are hereby given the option to convert into either stock cooperative under the Cooperative Development Act or Stock corporation under the Corporation Code. Nothing contained in this Act shall deprive electric cooperative of any privilege or right granted them under Presidential Degree no, 269,as amended, and other existing laws.”

    The Law merely gave the ECs the option. The ECs may or may exercise such option. The law clearly does not force or order the ECs to exercise the option. Hence, if an EC chooses not to avail of the option, that means, it opts to remain with NEA under P.D. No. 269, as amended.

    The foregoing intent of the law becomes even clearer in the light of par. “c” subparagraph “ii” of Section 7 of Rule 7 of the IRR of RA 9136 quoted in toto:

    “(c) Pursuant to section 57 of the act, ECs are give the option to convert into Stock Cooperatives under the CDA or Stock Corporation under the Corporation Code. Nothing contained in the Act shall deprived ECs of any privilege or right granted to them under Section 39 of Presidential Degree No. 269, and other existing laws. The conversion and registration of ECs shall be implemented in the following manner:

    (i) ECs shall, upon approval of a simple majority of the required number
    of turnout of votes as provided in the Guidelines in the conduct of
    referendum ( Guidelines), in a referendum conducted for such pur-
    pose, be converted into a Stock Cooperative or Stock Corporation
    and thereafter shall be governed by the Cooperative of the Phil-
    ippines or the Corporation Code, as the case may be. The NEA, with
    in six ( 6 ) months from the effectivity of these Rules, shall promul-
    gate the guidelines in the accordance with Section 5 of Presidential
    Degree No. 1645.

    (ii) ECs converted into Stock Corporation shall be registered with the
    SEC in accordance with the corporstion Code, while those conver-
    ted into stock Cooperatives, shall be registered with the CDA: Pro-
    vided , however, That the ECs which opt to remain as non-stock
    Cooperatives shall continue to be registered with the NEA and shall
    be governed by the provisions of the Presidential Decree No. 269,
    as amended,

    (iii) An EC heretofore converted, regardless of the corporate form, or
    its successor entity, shall remain its franchise rights, Provided, fur-
    ther, That its operations shall be regulated by the ERC and other
    Government instrumentalities insofar as practicable and consistent
    with the Act.

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