FICCO: 52nd General Assembly – Creating A Real Difference

With its forthright theme: “FICCO: Creating A Real Difference” is a well deserved title for the country’s leading open-community type multi-purpose cooperative. Amid political and economic situation in this careworn country sprout hope because of FICCO’s existence that is now unvaryingly stable with its upright leadership and noble volunteer’s stirred rural financial activity. They stand against all odds contributing to economic development and help make Mindanao a better place to live in.

General Assembly. The 4 days (Mar 3, 4, 10, & 11) or 2 weekends (Saturday’s and Sunday’s) finally ended and well attended by its members. A well-worthy commendation for the Board of Directors and volunteers that shared their time and effort for the GA’s success, to share a few of these noble sacrifices, on March 3 A.M. FICCO conducted 2 Assemblies simultaneously with one BOD group in Butuan (GA for Butuan) and the other BOD group in Camiguin (GA for Camiguin) and in the afternoon of March 3 the BOD group from Butuan traveled to Gingoog (GA for Gingoog and Balingoan) and the BOD group from Camiguin traveled to Villanueva (GA for Villanueva and Balingasag). In a glance, they were able to finished 4 general assemblies for 6 branches in March 3 alone. Needless to say a continuing assembly is in progress on the following day March 4 and on the next Saturday Mar 10 and finally March 11. Amazingly, this board of directors did not ask to be given “honorariums” for the whole 4 days activity.

Resolutions. At the conclusion of FICCO’s General Assembly there were 4 major resolutions approved and adopted for implementation. This includes: a.) A wider area of operation from Mindanao to the whole nation as its area of coverage; b.) An acceptance of associate members for flexible membership base catering the young and young adults not yet at legal age; c.) A Funeral Home Service new venture; and d.) A FICCO-Mutual Benefit Association (FICCO-MBA) also a new undertaking. On the other hand, the General Assembly approved FICCO’s desire for participation on the Party List System of Representation under the Party List of DAMGO which means Democratic Alliance of Mindanaoans for Good Governance.

Oath Taking Ceremony. The newly elected set of officers on the GA were able to took an oath of office, last March 17, 2007 in the morning, at the Xavier University, Little Theater and after the oath taking followed lunch and short acquaintance. In the afternoon an orientation was conducted for the members of the Audited and Inventory Committee (AIC), the Credit Committee, and the Election and Education Committee. This is concurrently done with the first Monthly Regular Board Meeting at the Xavier Canteen, Function Room.

The “Creation of a Real Difference” starts today. To the new set of officers comes now the real challenge, not on survival, neither tyranny nor oppression, but the battle to victor over the seal to make a difference, to serve the marginalize majority, and to pull the grassroots from the mud of poverty. Let us continue to shine the cooperative values and the ideology that we always speak of. Let us mutually respect each other. Let us help one another, and together let’s make a difference!!!

Creating A Real Difference

That noble message in bold prominent letters was etched on the annual General Assembly reports as the dominant theme for 2007 of the industry’s number one and biggest open-community type multi-purpose cooperative. A quite bold and rightfully-deserved theme for a once insignificant credit union that now celebrates its 52nd year of existence.

How surprisingly refreshing to chance upon a little bright bloom from the current grisly mire of negativism pervading the social and political landscape of a beleaguered country teeming with punditry that caters in wholesale unproductive rhetoric about what is wrong with the country in particular, and with the rest of the world in general. Abundant postulations, prognostications, detailed analytical dismantling of most anything and everything seen, but with hardly any constructive prognoses and actuations that will begin to address the gargantuan concerns besetting the citizenry, on a case by each case, one person at a time basis.

Yet from very inauspicious beginnings in July 8, 1954, birthed as the ACCU (Ateneo Cooperative Credit Union) in the then idyllic city of Cagayan de Oro, located in Northern Mindanao, and commencing with share capital of only 26.30 pesos, this community uplift undertaking has blossomed into something that will stagger even the most vocal and virulent among those who peddle negativism daily in the local blogosphere.

This multipurpose cooperative, now famously known as FICCO (First Community Cooperative, and now designed and registered to serve the entire country) has metamorphosed in to an almost 2 billion peso organization, with about 90,000 members at the end of 2006; and forecasted to register in 2007 2.5 billion in assets and 110,333 members, with increases at 32% and 24% respectively.

And to illustrate the redoubtable clout and deep community penetration of this undertaking, it carried in its books total loans of 1.5 billion pesos at the end of 2006, and projected at about 2 billion pesos for 2007. It is good to note that for 2006 loan releases amounted to 2.1 billion pesos.

But is it profitable? Can regular folks – teachers, drivers, market vendors, small entrepreneurs, etc, be trusted not only to faithfully follow a savings regimen, but also be counted upon to make good on loan accommodations?

Suffice it to say that the cooperative has always been stellarly profitable, and the last year was no exception.

For 2006, it registered net surplus for distribution to the tune of 118 million pesos, 70% of which were distributed to members as interests for deposit accounts, dividends on share capital, and patronage refunds to loan clients. Typically, 95% of the 70% are devoted to interests and dividends, while 5% for patronage refunds.

It was therefore with eager anticipation that I had my passbooks updated after an absence and dormancy of accounts for over a year. Needless to state, the increments were rather substantial, definitely better than what one would get for funds invested in other private financial institutions.

As an active member of FICCO since the 70’s, one finds some difficulty being quiet and reticent about the effectiveness and feasibility of this collective effort in its avowed purposes aimed at poverty alleviation, with emphasis on both development of a propensity to save and the integrity and mature commitment in discharging responsibilities with regard to credit accommodations.

As an equivalent shout at the rooftops, one cannot imagine the cluelessness and seeming ignorance of many pundits, government technocrats, and even in your typical highly-intelligent but dismally reality-aware pundits who ceaselessly harangue the blogosphere with endless rhetoric about what is wrong with the country and what should be done according to their idealized analyses.

Duh! Slow down and smell the coffee. You, too, may be able to participate in something constructive however puny or powerless one may feel about the overwhelmingly pervasive poverty conditions of the country. It is never that utterly hopeless. Most times meaningful solutions are within arm’s length of most everybody.

It does require great humility, and some real sweat equity, to climb down from one’s high perch of empty rhetoric, down to the levels of real actions, sometimes dirty, or insignificant or inconsequential, and do not derive much public notice to stoke one’s egotistical designs.

My exhortation? Contribute toward creating a real difference. In your own little ways.

UPDATE

The weekend dated March 11th witnessed the 11th and final general assembly comprising the members of the cooperative banking with the main office, held in a cavernous gym in the city’s polytechnic school. It was a rather well-attended affair which proudly reflected the over 10,000 main office clients.

For the sake of convenience and to accommodate the over 90,000 members scattered throughout many areas of Mindanao, it has been deemed proper after all these many years to hold different general assembly meetings in different locations. A truly admirable concept to bring cooperativism wherever it is needed.

And now fully cognizant of its economic clout, which saw loan releases for the past year far exceeding those granted by any financial institutions in the area, the organization is poised to exert some political clout through the party-list system of representation which has become commonplace in the country. Imagine getting some representation in the national body of congress to promote and protect the interests of cooperatives and credit unions. Unable to seek recognition of its own sectoral representation for the current election cycle, the cooperative has decided to focus on throwing support for one already duly recognized – The Democratic Alliance of Mindanaoans for Good Governance, or DAMGO, the Bisayan term for dream.

Democracy being a rather unpredictable and at times messy affair, the assembly which was scheduled from 8 am to 12 noon went way passed schedule; and though the gym felt like it was filled to the rafters, scores of people milled outside. The much-awaited climax for the affair was the distribution of dividends which was purposely left as the last item for the agenda. And getting almost 11% p.a. for one’s investments was well worth the wait.

(This is a repost original message by Amadeo through his permission)

Interest on Share, Subject to Income Tax But not Subject to Withholding Tax and VAT

(BIR Ruling DA 075-05, dated March 19, 2005)

The share of the owner-members in the net surplus of the cooperative is income and subject to income tax . However, the share of its members in the net surplus is not subject to withholding tax because it is not one of those income payments subject to withholding tax under RR 2-98, as amended. furthermore it is not compensation income and is, therefore, not subject to withholding tax on compensation, because it does not represent remuneration for services performed by an employee for his employer under an employer-employee relationship. It is also not a professional or talent fee and the owner-member of the cooperative are not contractors. Neither is it one of those income payments subject to final withholding tax. Moreover, the share of the owner-members in the service surplus does not constitute a sale, barter or exchange of goods or services and is therefore, not subject to value added tax"

Party List Accredited by COMELEC (Partial)

The link below points to partial list of accredited party list by COMELEC as of February 12, 2007

Party List Partial list. Here

A Responsible Vote

Who will you Vote? The coming May 14, 2007, we vote for Twelve (12) senatorial seats from the Eighty (80) aspiring senatorial candidates in the country. Incumbents, former lawmakers, and new aspirants race for the three (3) year seats in the upper house purposely to make our country a better place to live in.

A call for responsible voting is what we in the cooperative sector always long for. So who are we voting? Should we endorse a candidate? A responsible vote is one not sold for a penny offers by some candidates. A responsible vote is cast to candidate with integrity, you’ll know who, read the papers, watch TV, and use every resource we have to know our bets.

Are you going to vote for artist? Are you going to vote for incumbents? Are you going to vote for someone you don’t know? Well to guide you here are some tips to voter’s:

1. Decide what issues matter to you and what qualities you want to see in your candidate
   
2. Learn everything you can about the candidates
3. Do you agree with what the candidates stand for?
4. What kind of leader will each candidate be?
   
5. Review the info you have and decide.

Someone whisper from my back. Ask yourself a question “Does the candidate let go of his Pork Barrel?”

Remember your vote will make or inflict more damage to our ailing economy.

PEP Coalition gets COMELEC accreditation as party-list group

The Commission on Elections has accredited the Parents Enabling Parents (PEP) Coalition as a party-list group in the party-list system of representation in the May 14, 2007 election, ABS-CBN News reported Saturday.

The report said the coalition, which is composed of planholders of the Yuchengco-owned Pacific Plans Inc. (PPI), was confident that it will win a seat in Congress. It added that if PEP gathers enough votes in the mid-term elections it will push for the passage of a pre-need code that will protect the rights of the planholders.

It said that PEP decided to run this coming May elections after its members were dismayed over the alleged slow justice system. PEP parent members have sued the Yuchengcos and PPI officials for the pre-need company’s failure to pay the tuition of their children as stated in their educational plans.

It said that an estimated 1.4 million planholders have been victimized by pre-need companies in the country.

Six other party-list groups were accredited by the COMELEC, namely Kalahi (OFW); 1-United Transport Koalisyon (1-UTAK); A Teacher; Youth League for Peace Advancement or Lypad; Koalisyon ng Katutubong Samahan ng Pilipinas, Inc (KASAPI); and Democratic Independent Workers Association (DIWA).

The groups will participate in the party-list system of representation in the House of Representatives in the May elections. To gain a seat in the lower house, party-list groups need to garner at least 2 percent of the total votes cast for party-list groups. Additional 2% votes cast for a party-list group will gain another seat. A maximum of 3 seats can be secured by a group for representation in Congress' lower chamber.

PDIC Turns Over Misamis Occidental Cooperative Bank to New Investors

After more than three years of negotiation, the Philippine Deposit Insurance Corporation (PDIC) finally turned over the closed Cooperative Rural Bank of Misamis Occidental, Inc. to its new investors led by FICCO in a ceremony held at the PDIC head Office in Makati City on 8 January 2007. The physical turnover took place a week later right in the bank’s office in Oroquieta City.

PDIC Acting President Michael A. Osmeña presided over the turnover ceremony. In his speech, he emphasized the commitment of the government through the PDIC to help strengthen the confidence of the public in the banking system and promote the best interests of the rural economy. He further said that any bank rehabilitation is guided by the principle of reasonable burden shared by the bank’s stockholders, strategic investors, depositors, creditors, and government.

Mr. Roy Dino Tenaja and Atty. Isidro Lico, Chair and Vice-Chair of the rehabilitated bank’s interim board of directors, accepted the responsibility. Bangko Sentral ng Pilipinas (BSP) Managing Director Ma. Corazon Guerrero and CDA officials led by Chair Lecira Juarez were also present in the ceremony.

The BSP Monetary Board ordered the closure of the Cooperative Bank of Misamis Occidental on 20 February 2003, when it found out that the bank’s capital deficiency was critical. Facilitated by then Northern Mindanao Cooperative Development Authority Regional Director Ms. Manuela Pelaez, the talks for the rehabilitation of the bank came about a month after its closure. Consequently, nine (9) new investors showed interest in rehabilitating the bank and pledged to infuse the needed fresh capital of P12.41 million.

The bulk of new investment came from FICCO, which contributed more than P9 million, or 70% of the fresh capital. Cooperative Bank of Misamis Oriental put in P1 million. The rest of the new equity came from DMPI Credit Cooperative, DMPI Consumer Cooperative, Del Monte Employees Agrarian Reform Beneficiaries Cooperative, Philippine Federation of Credit Cooperatives, Oro Integrated Cooperative, Paglaum Multipurpose Cooperative, and Clarin National High School FMPC. Moreover, some 40 individual depositors of the bank agreed to convert their uninsured deposits of P8.75 million into equity.

The BSP Monetary Board, upon recommendation by the PDIC, approved the rehabilitation of the bank on 26 August 2004 with certain conditions. Among others, the conditions included amendment of the bank’s Articles of Cooperation and By-laws, conversion of the uninsured deposits of individuals into non-redeemable and non-cumulative preferred stocks, and conversion of bills payable to Cooperative Development Authority into equity. The Monetary Board also required FICCO to limit its shares to 40% of the subscribed capital and asked other investors to subscribe the excess capital it contributed.

The vital amendments to the bank’s Article of Cooperation and By-laws included the increase of authorize capital from P10 million to P100 million and change of name from Cooperative Rural Bank of Misamis Occidental, Inc. to Misamis Occidental Cooperative Bank. However, the proposal to amend the bank’s area of operation to cover entire Mindanao did not receive a nod from the authorities.

The investors also settled the receivership expenses incurred by PDIC as of 30 September 2006, subject to adjustments later. PDIC is the government agency that takes over the banks closed by the BSP Monetary Board.

Now known as Misamis Occidental Cooperative Bank, the bank is the first rehabilitated cooperative bank in the Philippine banking history. The country used to have more than 50 cooperative banks operating in various provinces. Now, it has only about 40 and most of them lack the resources needed to compete with the bigger players in the banking sector. At the instance of the government, the first cooperative banks came into being almost three decades ago with pre-cooperative associations known as samahang nayon as stockholders. Almost all of these associations are now inoperative.

Meanwhile, the renovation of the bank’s building and other facilities is now underway. The bank will start its operation on 16 April 2007. Its board has recently appointed Maria Lucy Cabalit, a former bank employee and a FICCO member, as the bank’s manager. A resident of Ozamis City, Ms. Cabalit is familiar with Misamis Occidental and its neighboring provinces.

See also a PDIC publish Article. Click Here

HB No. 04602 An Act Amending the Cooperative Code of the Philippines

HB No. 04602 An Act Amending the Cooperative Code of the Philippines it is to be known as “Philippine Cooperative Code of 2005”. This bill was calendared on August 24,2005 and approved on second reading on October 12, 2005. on the second reading the body approved to consider the explanatory note of the bill as the sponsorship remarks on the measure. Then the bill was presented and approved for the third reading last November 29, 2006, with House votes YES = 198, NO = 0, and Abstain = 0. On December 6, 2006 the Bill was transmitted to the Senate.

If you would like to get a copy of the Bill please locate our FICCO Management Group with the address: http://groups-beta.google.com/group/ficco and don’t forget to leave any comments if this site has been helpful.

FICCO Basketball Team

Cheers!!! This is FICCO's Basketball Team Champion of the recently concluded Director's Cup Basketball League. From the four clustered teams the league was ended by the Central Cluster as Champion for 2006. The team is headed by BM Egay Micayabas and Coach by Agripino Pacuribot.

Its team members in the picture (from left) Peter Taban, Ramil Obsioma, Neil Jamito, Titing Samuya, Agripino Pacuribot, Egay Micayabas, Alvin Gulayao, Allan Waban, Peejay Menciano, & Michael Alilin, (seated from left) Rolando Mapa & Chael Baritua.

Kudos! from the employees and staff of the Central Cluster, Our presence may not be there during the tourney but we join you in the Celebration (So... asa ta kaon?).

Congrats! Central Cluster!

Co-ops urge gov’t to define their tax obligations

The Country’s Union of Cooperatives has turned to the department of Finance and its attached agency, the Bureau of Internal Revenue, for help in clearing up the tax obligations slapped on member organizations nationwide.

Also, the 22,000-accredited cooperatives grouped under the Philippine Cooperative Center (PCC) have submitted to the DOF and BIR a 100-page primer outlining the tax exemptions and compliance of cooperatives.

According to PCC chair Senen Bacani, the cooperatives group deemed it necessary to issue the primer citing the difficulty some of the members are having in dealing with tax collectors, who appear to have different interpretations of the tax code on cooperatives.

The PCC is hoping that the primer will meet the approval of the DOF and BIR and adopt it “for the uniform guidance of all cooperatives and tax collecting agents,” Bacani said in an interview.

Lecira Juarez, Cooperative Development Authority Chair, said that, despite the clear exemptions of cooperatives from taxes, many cooperatives are still swamped with deficiency tax assessment from the Bureau of Internal Revenue.

“Should these cooperatives be made liable for taxes, even if the exemption is clearly provided in the law?” Juarez asked.

To encourage their formation, cooperatives were granted incentives under the Cooperative Code. The incentive depends on whether the cooperative does business exclusively with members or deals with non-members.

Tax expert Recel P. Cachuela from the Punongbayan-Araullo audit firm, said that “if the cooperatives are to be considered vehicles for promoting self-reliance aimed towards the attainment of economic development and social justice, [the organization] should be accorded benefits clearly intended by law.”

Note: The above article is an excerpt from Philippine Daily Inquirer (PDI) dated October 30, 2006. By Christine A. Gaylican.