Revenue Regulation No. 20-2001

November 12, 2001

REVENUE REGULATIONS NO. 20-01

SUBJECT: Regulations Implementing Articles 61 and 62 of Republic Act No. 6938,
Otherwise Known as the "Cooperative Code of the Philippines", in Relation
to R.A. Nos. 7716, 8241 and 8424, Thereby Amending Revenue
Memorandum Circular (RMC) No. 48-91

TO: All Internal Revenue Officers and Others Concerned

SECTION 1. Scope. — Pursuant to Section 244, in relation to Section 4 of the Tax Code of 1997, these regulations are hereby promulgated (1) to implement the provisions of Articles 61 and 62 of R.A. No. 6938, as effectively amended by R.A. Nos. 7716, 8241 and 8424 granting tax exemptions to cooperatives and (2) to prescribe the guidelines for the availment thereof, thereby amending RMC No. 48-91.

SECTION 2. Definitions. —

a) Cooperative — means cooperative duly registered with the Cooperative Development Authority or whose registration has been confirmed by the latter, including primary, secondary or tertiary cooperatives.

b) Cooperative Development Authority — means the government agency in charge of the registration and regulation of cooperatives as such, hereinafter referred to as the CDA.

c) Registration — means the operative act granting juridical personality to a proposed cooperative as evidenced by a Certificate of Registration from the CDA.

d) Certificate of Tax Exemption — means the ruling granting exemption to the cooperative issued by the Bureau of Internal Revenue.

e) Income Tax — means corporate/cooperative income tax under the National Internal Revenue Code.

f) Sales Tax — refers to either the value-added tax or percentage tax.

g) Net Surplus/Net Savings — refers to the net amount arising from the operations of the cooperative, belonging to its members, not construed as profit, but as excess of payments made by the members for the loans borrowed or the goods and services bought from the cooperative which shall be made available to them in the form of interest not to exceed the normal rate of return on investments and patronage refund.

h) Undivided Net Savings — refers to the amount arising from net surplus or any portion thereof which the Board of Directors of the General Assembly of the cooperative decides not to divide or make available to members in the form of interest on share capital, patronage refund, reserve refund, education and training fund, optional fund or any other statutory reserve; this also includes the amount arising from the net surplus or any portion thereof which the cooperative is unable to divide because the General Assembly of the cooperative has not been convened for more than two (2) years;

i) Accumulated Reserves — refers to the amount of accrued sum of money annually retained and deducted from the net surplus which is not intended for allocation or distribution to the members, usually deposited in the bank for the protection of and stability of the cooperative commonly referred to as the General Reserve Fund.

SECTION 3. Exemption From Taxes. —

3.1 Duly registered cooperatives dealing/transacting business with members only shall be exempt from paying the following taxes for which they are directly liable, viz:

a. Income Tax on income from operations;

b. Value-Added Tax (VAT) under Section 109 pars. (r), (s), (t) and (u) of the Tax
Code of 1997;

c. 3% Percentage Tax under Section 116 of the Tax Code of 1997;

d. Donor's tax on donations to duly accredited charitable, research and
educational institutions and reinvestment to socio-economic projects within the
area of operation of the cooperatives;

e. Excise tax under Title VI of the Tax Code of 1997;

f. Documentary Stamp Tax imposed under Title VII of the Tax Code of 1997,
provided, however, that the other party to the taxable document/transaction
who is not exempt shall be the one directly liable for the tax; and

g. Annual Registration Fee of P500.00 under Section 236(B) of the Tax Code of
1997.

3.2 Taxability/Exemption of duly registered cooperatives dealing/transacting business with both members and non-members:

I. For cooperatives with accumulated reserves and undivided net savings of not more than Ten Million Pesos (P10,000,000.00)

a. Exemption from all national internal revenue taxes for which they are
directly liable, as enumerated under Sec. 3.1 of these Regulations.

II. For cooperatives with accumulated reserves and undivided net savings of more than Ten Million Pesos (P10,000,000.00) —

a. Exemption from income tax for a period of ten (10) years from the date
of registration with the CDA, provided, that at least twenty-five percent
(25%) of the net income of the cooperative is returned to the members
in the form of interest and/or patronage refund.

For cooperatives whose exemptions were removed by Executive Order No. 93, the ten-year period shall be reckoned from March 10, 1987 (meaning, tax exemption is valid only until March 10, 1997).

After the lapse of the above ten-year period, they shall be subject to income tax at the full rate on the amount allocated for interests on capital, provided that the same is not consequently imposed on interest individually received by members;

The tax base for all cooperatives liable to income tax shall be the net surplus arising from business transactions with non-members after deducting the amounts for the statutory reserve funds as provided for in the Cooperative Code and other laws.

b. Exemption from VAT under Section 109 (r), (s), (t) and (u), 3% percentage tax under Section 116, and the P500.00 annual registration fee imposed under Section 236 (B), all of the Tax Code of 1997;

c. Subject to all other internal revenue taxes unless otherwise provided by law; and

d. Entitled to limited or full deductibility from the gross income of amount donated to duly accredited charitable, research and educational institutions and reinvestment to socio-economic projects within the area of operation of the cooperative.

Notwithstanding the foregoing, all income of the cooperative not related to its main/principal business/es shall be subject to all the appropriate taxes under the Tax Code of 1997. This is applicable to all types of cooperatives, whether dealing purely with members or both members and non-members.

In any event, all types of cooperatives are required to register with the Bureau of Internal Revenue.

SECTION 4. Taxability Of Cooperatives To Other Internal Revenue Taxes. — All Cooperatives, regardless of classification shall be subject to:

a) 20% final income tax on interest from any currency bank deposit and yield or any other monetary benefit from deposit substitutes and from trust funds and similar arrangements and royalties derived from sources within the Philippines;

b) 7.5% final income tax on interest income derived from a depository bank under the expanded foreign currency deposit system;

c) Capital Gains Tax on sales or exchanges of real property classified as capital assets or shares of stock;

d) Documentary Stamp Taxes on transactions of cooperatives dealing with non-members when the accumulated reserves and undivided net savings of such cooperatives exceed Ten Million Pesos (P10,000,000.00);

e) VAT billed on purchases of goods and services, except the VAT on the importation by agricultural cooperatives of direct farm inputs, machineries and equipment, including spare parts thereof, to be used directly and exclusively in the production and/or processing of their produce, and importation by electric cooperatives of machineries and equipment, including spare parts, which shall be directly used in the generation and distribution of electricity, pursuant to Section 109 (r) and (s) of the Tax Code of 1997 but which are not available locally as certified by the Department of Trade and Industry. All tax-free importations shall not be transferred to any person until five (5) years, otherwise, the cooperative and the transferee or assignee shall be solidarily liable to pay twice the amount of the tax and/or the duties thereon;

f) All other taxes for which the cooperatives are not otherwise expressly exempted by any law.

Moreover, all cooperatives, regardless of classification, are considered as withholding agents and are required to file withholding tax returns and remit withholding taxes on all income payments that are subject to withholding.

SECTION 5. Taxability Of Members/Stockholders Of Cooperatives. — The exemption of the cooperatives does not extend to their individual members. Thus, members of cooperatives are liable to pay all the necessary internal revenue taxes under the National Internal Revenue Code, including the tax on earnings derived from their capital contribution. Provided, however, that interests received by members of a cooperative with accumulated reserves and undivided net savings greater than Ten Million Pesos (P10,000,000.00), after the lapse of the ten-year exemption under Sec. 3.2 (II) above, shall no longer be taxable in the hands of such members. EACIcH

SECTION 6. Documents To Be Attached To The Letter-Application For The Issuance Of Tax Exemption Certificate. — A Letter-Application signed by the President/General Manager of the Cooperative, or his duly authorized representative, should be submitted to the Legal Division of the Revenue Region having jurisdiction over the principal place of business of the cooperative, attaching thereto the following documents:

a) Articles of Cooperation and By-Laws;

b) Certified true copy of the Certificate of Registration issued by the CDA;

c) Certified true copy of the Certificate of Confirmation of Registration from the CDA (in the case of Cooperative already existing and previously registered under P.D. 175, P.D. 775, and E.O. 898, before the creation of the CDA);

d) Certificate under oath by the President/General Manager whether the Cooperative is transacting business with members only or with both members and non-members, whichever is applicable;

e) Original copy of the Certificate of Good Standing from the CDA;

f) Certification under oath by the Chairman/President/General Manager of the Cooperative (if previously registered as above stated) as certified by the CDA, as to the amount of accumulated reserves and undivided net savings, and that at least 25% of the net income is returned to the members in the form of interest and/or patronage refund;

g) Certification under oath of the list of members and the share capital contribution of each member; and

h) Latest Financial Statements duly audited by an independent CPA.

SECTION 7. Validity Of Tax Exemption Certificate. — The Tax Exemption Certificate shall be valid during such period that the Cooperative is in good standing as ascertained by the CDA on an annual basis.

SECTION 8. Annual Return And Documents To Be Filed With The Bureau Of Internal Revenue. — A copy of the Certificate of Good Standing issued by the CDA to the cooperative shall, together with the Annual Information Return (for non-taxable cooperative) or Income Tax Return (for taxable cooperative) and Financial Statements, be submitted to the Bureau of Internal Revenue on or before the 15th day of the fourth month following the close of the taxable year.

SECTION 9. Verification Of Annual Information Return/Income Tax Return, Financial Statements, Attachments And Records. — Pursuant to the last paragraph of Section 235 of the Tax Code of 1997, any provision of existing general or special law to the contrary notwithstanding, the books of accounts and other pertinent records, as well as the operations of all cooperatives, may be examined by the Bureau of Internal Revenue annually for purposes of ascertaining compliance with the conditions under which they have been granted tax exemptions or tax incentives, and their tax liabilities, if any, upon previous consultation with the CDA.

SECTION 10. Repealing Clause. — All revenue rulings, regulations and other issuances, including Revenue Memorandum Circular No. 48-91, or parts thereof which are inconsistent with these Regulations are hereby amended or repealed accordingly.

SECTION 11. Effectivity. — These Regulations shall take effect upon approval hereof.

(SGD.) JOSE ISIDRO N. CAMACHO

Secretary of Finance

Recommending Approval:

(SGD.) RENE G. BAÑEZ

Commissioner of Internal Revenue

Does the Certificate of Tax Exemptions have Retroactive Effects?

Tax exemption of transactions prior to issuance of Certificate of Exemption.

Tax exemptions of cooperatives are granted by law (Article 61 and 62 of Republic Act 6938). Thus, the effectivity of the tax exemption privileges of the cooperative is the date of approval of registration by the CDA, considering that the issuance of the Certificate of Exemption by the Bureau of Internal Revenue is merely confirmatory.

Are Deposits Other Than Share Capital Subject to Withholding Tax?

Exemption of interest income on members' deposit (over and above the share capital holdings) from the 20% Final Withholding Tax (BIR Ruling No. [DA-591-2006] dated October 5, 2006).

The National Internal Revenue Code states that "a final tax at the rate of twenty percent (20%) is hereby imposed upon the amount of interest on currency bank deposit and yield or any other monetary benefit from deposit substitutes and from trust funds and similar arrangement...." for individuals under Section 24(B)(1) and for domestic corporations under Section 27(D)(1). Considering the members deposits with the cooperatives are not currency bank deposits’ nor deposits substitutes, Section 24(B)(1) and Section 27(D)(1), therefore do not apply to members of cooperatives and to deposits of primaries with federations respectively.

Cooperative Forum on Taxation

The Cooperative Development Authority - X (CDA) in cooperation with the Regional Cooperative Development Council - X (RCDC), the Misamis Oriental Cooperative Union - X and First Community Cooperative (FICCO) successfully held the "Cooperative Forum on Taxation" with the speaker invited from NCR no less than the Former BIR Deputy Commissioner Estelita Aguirre and the Secretary General of the Cooperative Union of The Philippines (CUP) Engr. Felix Borja.

I remember that very short acquaintances in Cebu, Lamac MPC last Feb this year where I met the Former BIR Deputy Comm. Aguirre and Engr. Borja, it was an annual GA for the Cooperative Union of the Philippines and during this meeting Aguirre cites simple provisions of the law that answers the cooperatives problem from taxation assessment by the BIR. She made a short tax clinic and advises the cooperatives on how to remedy the tax deficiency assessment of the BIR. During its forum I cast in a lot of questions to her which she answered clearly citing provisions of the law. It was this time that I realize we got for ourselves a champion in the Cooperative Taxation, a defender of cooperatives, a person with passion for the cooperative movement.

That experience in Cebu made me hope for more encounter with the Former Dep. Comm. and that long wait is over when there was an initial discussion with the RCDC and CDA by Dir Orland Ravanera to invite Aguirre in Cagayan de Oro, and so, she came and join us for a day with cooperative leaders in the Region. The Cooperative Forum on Taxation that answers much of the gray areas in the coop taxation. And for the benefit of those who were not present I will post some tax issues in my next articles and don't worry because I will not let you wait for long. I'll just publish the very important and relevant issues of coop taxation and you may post questions as comments at the end of the article.

While I am very thankful that I was molded in the cooperative principles at a young age, I am thankful as well that God interfere to the people in authority and in the government to slowly realize that in “cooperativism” this nation is full of hope. That peace and order situation and poverty can be answered by cooperativism. For a person like the Former Deputy Comm. with a shout from Region X "We salute you Madame Estelita Aguirre!" for the commitment and the dedication we pray for more people like you to protect and progress this movement and the country.

100,000 !

FICCO registers 100,273 members as of the end August 2007.

The significance of this magic number is better appreciated if compared to certain benchmarks. Consider these: our coop has –

Ø 10,966 more members if compared to the number as of the end of 2006;

Ø 13,956 more members if compared to what we have one year ago;

Ø 27,504 more than the level three years ago; and

Ø 76,245 more if compared to the total as of the end of the year 2000.

For a coop that started with only 17 members in 1954, with a capability of convincing only 160 more after 16 years of existence, and has to labor hard to increase its number to almost 1,000 by 1980, and to 6,000 by 1990, topping the 100,000 mark is indeed a remarkable achievement. The following graph better illustrates this membership growth trend

To whom should kudos rest for this achievement? On top of the list are the thousands of satisfied members who convince their relatives, friends, neighbours, office mates and acquaintances of the values that enhance their lives through FICCO membership.

Of course, the efficiency, effectiveness, transparency and sense of stewardship that the officers and staff practice in running the affairs of the coop made certain that the satisfaction level of the members is maintained.

Also playing highly important role in the membership drive is the contingent of EDCOM (education committee) members who are always at the forefront of the recruitment effort. Serving as models of members in good standing, these volunteer educators brought to light the many who were in the dark of the opportunities that abound for people who are members of FICCO.

Before everyone gloat at this achievement, let us all consider that our number is still a small fraction of the adult population of the areas that FICCO now operates. There are still thousands out there who are still in the clutches of loan sharks. They too deserve FICCO membership.

Let us also try to minimize the resulting inefficiencies brought about by our number. Let us improve our systems, open more business centers and update our technology. With our P 2.2 billion assets, and 100,000 members, there are really no stumbling blocks that cannot be surmounted.

It is not a pipe dream to think that in four more years, FICCO will have 200,000 members and P 5.0 billion in assets. (ibdaba)

What Makes FICCO Unique?

The growth of FICCO in terms of membership, assets and capital is phenomenal. As of end of May 2007, our coop boasts of almost 97,000 members, resources of P 2.1 billion, and share capital of P 830 million. With the opening of its Davao Branch last 21 May 2007, FICCO now has twenty five offices spread in Northern, Southern and Eastern Mindanao. And two more are coming up: Bayugan, Agusan Sur and Maranding, Lanao Norte branches.

Can we define the uniqueness of FICCO by the number of its members? Or maybe by the size of its capital and assets? We can, but it will not provide the deeper reasons 1,000 to 1,500 people join our coop every month. It will not also explain why total assets posted an average annual growth of 26% during the last five years; nor would it justify the fact that during the last five months, its capital grew, on the average, by P19 million per month.

Let us look at more closely the factors that drive FICCO’s continuing growth. The major reason more and more people join FICCO is its army of satisfied members who, in turn, convince others to join. The new members add their contributions to the capital pool. The existing members, because of their satisfaction, also continue to build up their deposits. These, together, push resources upward and the trend continues.

Why are the members satisfied with FICCO? To claim that it is due to fast and courteous service would probably elicit raised eyebrows. The increase in membership overstretches manpower and support facilities that forced some branches to give priority numbers. The coop still has no ATM machines.

Rather, members’ satisfaction emanates from FICCO’s diversified product lines, fast loan release (P 25,000 in 5 minutes or less), mutual aid services, competitive pricing, high returns, transparency, etc.. Some quarters may argue that these are easily emulated, so nothing is really unique. But those who jump to that conclusion miss important points. First is the interplay of all those factors at FICCO. Some coops may have three or four of those factors, but the others are still “works-in-progress”. Second, over the years, through trial and error, successes and failures, FICCO has developed its own unique way of doing things. Combined, we call this the FICCO culture.

Applied to institutions, culture is defined as “the set of shared attitudes, values, goals, and practices that characterizes an institution.” This set of values has gradually seeped into almost all aspects of FICCO’s operations and has shaped its character which, in turn, defined its image and public perception. This culture is actually anchored on the following values or practices:

Total Member Care

• Quality service – FICCO endeavors to continuously upgrade its services and makes them responsive to the needs of the members. Members feel that joining FICCO is a value-added undertaking.
• Service with Personal Touch – The members feel the personal connection with the personnel of FICCO because the latter are willing to go out of their way to serve them with dignity and respect, and satisfy their needs.

• Active Participation of Grateful Members – The members go out of their way to help FICCO: by spreading the virtues of the coop through word of mouth, by lighting the unlighted candles of opportunities, by lending their time, effort, and, at times, even their resources in FICCO activities without expecting anything in return.

Good Governance:

• Stewardship and Ownership – The officers and management staff run FICCO like owners who are always looking for ways to improve the business. They are also aware of their role as prudent custodians of the resources entrusted to them by the members.
• Transparency, Accountability and Democracy – The actions of the leaders and management are open to scrutiny by any member. The records of the coop are open to all. Even if the majority rules, the voice of the minority (including the few sour-grapes) is listened to.
• Common good – All the members, big or small, are treated equally and policies are formulated with the good of the majority in mind. While the ugly head of vested interests do creep in from time to time, it is easily checked and put in its proper place.
• Recognition of Rights and Responsibilities – The members are vigilant of their rights and privileges, but they also recognize their responsibilities as members in good standing.

Defining Values

• Sacrifice – The people constituting FICCO are willing to go out of their comfort zones to pursue the greater good.
• Discipline – Everyone at FICCO, without exception, diligently observes policies. As a measure of respect for everyone, meetings and other activities start on time.
• Volunteerism, not opportunism – Officers contribute their time and skills without counting the cost, nor are they expecting commensurate rewards. In this era of heightened competition, volunteerism is FICCO’s competitive advantage. In turn, the staff renders service not just as 8 to 5 employees.
• Lean organization – The hiring of staff is based on need. FICCO never had a bloated bureaucracy.
• Control costs and expenses – “Spartan” and “minimalist” are words that best described the way FICCO operates. It avoids frills and ostentatious displays. Junket is taboo. It always seeks for the best deal.
• High returns to members – FICCO’s dividend rates may not be at par with closed-type cooperatives that usually do not pay rent and other utility expenses but it is definitely higher than time deposit rates. And the patronage refund really reduces the cost of doing business with the coop. What made these feats even more remarkable is the fact that the price of its services is very competitive even compared with the big banks. No wonder its members deposit and patronize its services more.
• Aggressive yet sure-footed – FICCO is the pioneer in branching out in Mindanao, yet it did not open branches based on whims. Rather, it brought its services to places where there are already FICCO members. Thus, FICCO branches break-even just a few months after the opening date.

The above (and many more) are the values, attitudes, goals and practices shared by the people running and constituting FICCO. It can be summed up in one word: COMMITMENT. The commitment of the leaders, personnel, and the members of FICCO brings out a synergetic environment that propels the growth and success of the coop. This is the culture that pervades at FICCO. And this culture is what makes FICCO unique! (IB Daba)

Cooperative Month Celebration - The Opening Salvo!

October of every year marks the annual celebration of the cooperative month and with common interest the Cooperative leaders and their members again for this year show unity and camaraderie during the opening salvo with a well attended Holy Mass at the City Cathedral and followed by a Parade of cooperatives from the Gaston Park to the Provincial Capitol. Leaders and members of different cooperatives march joyfully with the Drum and Bugle from Misamis Oriental General Comprehensive High School (MOGCHS) and the Cagayan de Oro City High School from the assembly area to the final destination. Motorcycle riders from the First Community Cooperative and coop of Land Transportation Office (LTO) showed support to control traffic flows.

A short program at the Capitol Ground followed with the presence of Senator Juan Miguel "Migs" Zubiri and Congressman Rep. Guillermo Cua. Hon. Mig Zubiri is the current chairman on Committee on Cooperatives in the Senate and Rep. Gil Cua is the Party list representative of the COOP NATCCO. Both public officials are strong advocates of the cooperative movements.

At 10:30 a.m. Sen Zubiri and Rep Cua and party with the cooperative leaders rush to SM for the ribbon cutting of the Coop product showcase at SM 2nd fl. After the ribbon cutting the Senator declared in an interview by ABS-CBN that Northern Mindanao Region X is the country's cooperative region, and explain further that leading cooperatives in the country can only be seen in Northern Mindanao.

Subsequently after the activity at SM an Interaction with Cooperative Leaders followed at the SEARSOLIN, with Director Orland Ravanera comprehensively presented the cooperative sector updates and developments and a 5 - point legislative agenda was afterward presented to the Senator, the congressman and to more than 30 cooperative leaders which then followed by a fruitful exchange of views and ideas at the opening forum. finally the Senator leaves at exactly 12:20 p.m. with a plane to catch at 12:30. The cooperative sector though still want to carve more time with the Senator was compensated by the Senators' statement that before November ends a new Cooperative Code of the Philippines will come out with specific provision on the gray areas of RA 6938 and resolve the tax cases impose by the Bureau of internal Revenue (BIR) to the cooperatives.

There are more to come for the whole month of October as the Cooperative Month Celebration progresses. Cooperative Leaders and members are urge to participate in this month long activity. For those interested individuals you may check with the Regional Cooperative Development Council (RCDC) and the Cooperative Development Authority (CDA).

The Cooperative Pledge

As a Filipino
I am and I believe in the Cooperative.
alone I am weak
But with others I am strong.

So I commit myself to work to cooperate,
For all to be prosperous.
Harmony, industry I will value.
Cooperative affairs I will attend.
Responsibilities I will assume.
The cooperative philosophy I will live.

One vision, one belief, one feeling,
In cooperativism, my life I pledge
So help me God.

FICCO and Freedom From Hunger

As I surf the web and search for the First Community Cooperative at Google, I happen to discover that FICCO being a partner of Credit Union Empowerment and Strengthening (CUES) is also considered partner for Freedom From Hunger. The First Community Cooperative being in the community for the last 50 years is still doing its part for social responsibility and teaching people help themselves and alleviate economic status for the cooperative members.

The CUES Philippines is a USAID funded project in the Philippines with principal office at Davao City. This project was initially directed by an Herb Wegner Awardee Loius Skitch in year 2000 after her reassignment it was leaded by a Filipino by Luis Jose Raymundo Sasuman. Currently CUES project is working on a Deposit Insurance Facility (DIF). It is a PDIC like operation for credit cooperatives but FICCO has yet to signify its intention for participating this project.

PGMA's Speech during the Mindanao Cooperative Conference

Grand Caprice Restaurant, LImketkai Center Cagayan de Oro City, Misamis Oriental (06 March 2004)

Thank you very much, Chairman Ruben Conti for your introduction. Thank you also for your innovations sa cooperative movement.

Binabati ko rin ang dating chairman ng Cooperative Development Authority na siya ang bagong Secretary ng Tourism, si Secretary Obet Pagdanganan. binabati ko rin pero parating gusto niya nasa backstage siya, ang ating Secretary of Housing, si Mike Defensor. nasa backstage, backstage.

Ipaabot ko sab ang akon pag-abe-abe sa akong usa sa mga daghang mga Cabinet members gikan sa Mindanao ang... Si Secretary Cito Lorenzo, apil na ang iyang kanhi nga company ang Del Monte tungod kay ang Del Monte cooperative ang nakadaog ug... A hall of fame awardee nga katunay na outstanding cooperative. ang akong pag-abe-abe sab sa mga uban nga awardees karong tuig.

Sa atong mga officers and officials diri sa Cagayan de Oro ug Misamis Oriental, ang atong host mayor, Mayor Dongco Emano; ang atong Congressman, Congressman Oca Moreno; ug gusto ko sab ipaabot ang akong greetings sa usa ka anak ug Cagayan de Oro nga dako kaayo ang nahimo alang sa aton mga cooperative farmers ug laing uban nga farmers, ang head sa National Irrigation Administration, si Jess Paras ng Cagayan de Oro; si Cito ug si Jess ubos sa akong administrasyon, aking diutay nga tiyempo isip presidente nakahuman, nakakumpleto, naka-repair sa half-a-million hectares sa irrigation systems.

Ang atong na... Ang nabilin... Ang atong naabutan nga irrigation one million hectares. Sa ating diutay, gamay nga tiyempo isip presidente half-a-million hectares ang nabilin na ra na dili pa irrigated half-a-million hectares na ra. Kon sa akong diutay, gamay, kadyot nga tiyempo isip presidente nakahuman kita ug half-a-million hectares, pa unsa pa ang anum na taon nga masunod nga administrasyon. anim nga tuig, I mean.

Kaninyong tanan, mga Cooperative Development Authority Board and Administrations Officers, cooperative leaders sa Tibuok Mindanao, maayong buntag mga kooperatiba sa Mindanao.

Hibalo ko nga naa kamo mga hangyo sama sa ingon ug atong speaker kagangina sama sa pag-register ug electric cooperative sa CDA, usa sa mga issue, ang akon prinsipyo diri depende kon asa mamenos ang electric bill sa mga consumers. sama... Mao sab ang akon tuyo niadto gi-condone ko ang bilyun-bilyon nga utang ug mga electric cooperative. unta dili nakalimot nga gi-condone ko ang utang ninyo. Asa mga electric cooperative diri? Wala kamo. Okay, kay dili sila apil sa electric cooperative. Mao ang atong problema ug ang atong murag ang atong controversy diri o issue gikan sa nagkalain-laing interpretasyon sa tax exemption sa coops busa gina-instruct ko karon ang Secretary of Justice agi kan Ruben -- tiga-saan ka ba Ruben? Ay Batangas, magtatagalog ako sa kanya -- Ruben, sabihin mo sa Secretary of Justice, kay Mercy Gutierrez, na gumawa na nang opinyon tungkol sa tax exemption ng cooperatives na kailangan susundan at kung anong ginawang opinyon ni Secretary of Justice Mercy Gutierrez kailangan sumunod ang BIR at ang CDA. So, kakausapin mo mamaya.

Kagangina sab ingon ng inyong speaker nga mahimuon ta mandatory ang municipal cooperative local government of... Ug ang inyong gusto, ang hangyo ninyo na mga local government mabutang ug municipal cooperative development officer. Karon kung gusto naton nga mandatory kinahanglan balaod. Apan karon adlawa ang aton mahimo kung gusto nato nga sa masunod nga administrasyon i-amend na nato ang local government code. Tingali amendahan naton ang konstitusyon aron na ang federal form of government ang atong nasod. Unya sa federal government diri sa Mindanao ang Kongreso ang legislative body sa Mindanao ang makabutang ug municipal cooperative development officers diri.

But in the meantime na wala pang balaod o wala pang bag-o nga federal constitution makahangyo kita, dili kita makamanda, makahangyo kita sa mga local government na unta mabutang nini officer. Ako kausab sa inyong hangyo labi na sa akong administrasyon gihatag kong intero nga IRA sa mga local governments dili parehas ni Estrada na 20 percent ang iyang gi-retain agi sa usa ka executive order. Ako gi-repeal ko ang executive order, tanan ira naadto sa mga local governments, gibayad ko pa ang utang ni President Estrada sa IRA. busa, kauban ako sa inyong hangyo sa ila, dili mandato apan hangyo nga mabutang ug municipal cooperative officer. Naa kamo sab hangyo sa Land Bank, labi na ang atong Agrarian Reform Beneficiaries Cooperatives, asa kamo? Agrarian Reform Beneficiaries, wala? Kamo. Kay hibaw ko nga Agrarian Reform Beneficiaries naa pa kamo adjustment no gikan sa mga landlord. So, daghan pa ang utang and arrears sa Land Bank. So, Ruben Conti, again, tatagalugin ko, sabihin mo sa... Ah, ayaw kalimti bago ko mag-instruct sa iya, ayaw kalimti -- unsay tuig man na when we had the... Two years ago, 2002. Sa akong instruction ang Land Bank gitagaan kamo ug moratorium sa inyohang past due interest and penalty. karon wa ko hibaw kung nano na ang request gihapon. So, anyway... Ay si Cito member sa board sa Land Bank. Okay, so kan ito na ta mag-instruct, dili na kan ruben kay dili man siya member sa Land Bank ug dili sab anak ug Mindanao. Cito, member sa Land Bank, anak sa Mindanao ug maka-instruct ako kanimo sa binisaya. Ikaw na Cito ang maingon sa land bank nga sa gihapon tabangan ang mga land reform borrowers sa ilahang past due penalties sa aton mga mang-uuma sa Land Bank.

Ang penalty sa mga utang sa aton mga mang-uuma sa land reform tungod kay naa pa sila adjustment nga nawala na ng landlord na kaniadto makatabang sa ila. Importante gyud ang espesyal nga pagtrato sa mga kabos nga sektor. Mao gyud ang usa sa aton mga prinsipyo sa akong administrasyon. Sama sa microfinance, sa mga kabos nga nakapautang ta sa akong diutay, gamay, kadyot nga tiyempo isip preisdente usa ka milyon nga kababainan naka-benefit na sa atong microfinance. Ug kauban na diri ang 4,000 nga pamilya diri sa Misamis Oriental. tingali si Congressman Oca Moreno mangita asa ining mga 4,000 nga natabangan nato aron matabang sab sila kan Oca Moreno kag kan Gloria Macapagal-Arroyo kag ang aton mga kauban sa K4.

Karon sa iyahang launching nakita nato -- ay, itatagalog ko ulit kasi si Ruben -- okay, yung GMA sa kooperatiba ng CDA nakakatulong dito lalo na yung CDA National Livelihood Support Program for the Urban and Rural Poor. Kauban diri ang Quedancor, our very good president of Quedancor, si Nelson Buenaflor, aniya karon daghan na mang-uuma ang gitabangan ni Buenaflor karon naa espesyal nga project kasama ang Cooperative Development Authority. Espesyal para kaninyo, aton mga kooperatiba diri sa Mindanao.

Maoy kauban sa mga kusog na pagsugod sa aton kadyot nga tiyempo isip presidente alang sa bag-o sa ordinaryo ka Pilipino. Kay daghan sa atong ordinaryo nga Pilipino maoy miyembro gyud sa mga kooperatiba. Apan maoy down payment pa ra busa aron mahimo nato ang masunod nga installment nining mga uban nga mga fundamental reforms nga apil sa inyohang mga position papers karon. Kay nakita na ninyo naa na ta down payment sa inyohang mga kinahanglan alang sa kauswagan sa Cooperative Movement sa Mindanao ug sa Tibuok Pilipinas unta palihog tabangi ko ninyo.

Daghan salamat kaninyong tanan.

Comment:

PGMA instructed Ruben Conti to ask Secretary of Justice Mercy Gutierrez to draft an opinion on tax exemption of cooperatives!

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