MOST likely, Joint Memorandum Circular No. 2019—01 of the Department of Interior and Local Government (DILG) and the Cooperative Development Authority (CDA) is the most noteworthy Memorandum Circular on cooperatives released this year.
The JMC entitled co-op promotion, organization and development in local government units will surely give guidance to all concerned officials including governors, city and municipal mayors.
With the joint circular, LGUs are now enjoined to formulate Local Cooperative Development Plan consistent with the National Development Plan and the Philippine Medium-Term Development Plan, to be incorporated in the Comprehensive Development Plan and Annual Investment Plan. This activity will help address the needs of the sector especially the micro co-ops that needs guidance and nourishment.
The co-op plan may include the implementation of mandatory and optional trainings, assistance to reportorial requirements, promotion of co-op organization, assistance to research projects, establishment of Co-op office and other programs relative to the development of the movement.
There are only few LGU cooperative offices in the region. The Provinces Benguet, Mt. Province and Kalinga, City of Tabuk, and Municipalities of Paracelis and La Trinidad appointed permanent co-op development officers. In the Local Government Code of 1991, Cooperative Officers are indicated as optional positions to be created.
One role of the government unit stipulated in the memorandum is to appoint the local cooperative officer to take charge of the office for the development of the group. CDA reported that there are hundreds of co-ops in the Cordilleras with thousands of members. The statistics show that there is really a need to hire officers particularly those areas with mushrooming number of co-ops.
It also stated that the local government should ensure the provision of technical and financial assistance, and other services to develop cooperatives into viable and responsive economic enterprises. It is always a battle in the LGU if co-ops are entitled to financial assistance or not because of the different opinions from various agencies. This circular may now somehow give light to LGUs that are still hesitant of giving monetary aid to co-ops. This will serve as support to their development as stated in the Co-op Code of 2008.
Your hopeful Ikarao son is confident that this circular will guide other LGUs, most especially the executives, in strengthening co-ops in their own respective towns. This instrument may be also used as a basis to support the appointment of permanent co-op officers.
While CDA and DILG are making upright undertakings, the whole co-op cluster is also hoping for a CDA-BIR joint circular on matters of Tax Exemption application.