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Wednesday, November 29, 2006

E.O. 332 Cooperative Development Authority is under Department of Finance

Last July 16, 2004 President Gloria Macapagal Arroyo signed Executive Order No. 332, an EO Transferring the Cooperative Development Authority (CDA) from the Office of the President to the Department of Finance (DOF). The Executive Order did not explain much about why the CDA needs to be transferred to the DOF nor was it communicated to the cooperative sector before its decision to transfer. The EO simply said that in order to facilitate coordination of policies and programs between these agencies, it is necessary to place the CDA under the DoF. If I may ask what coordination of policies and programs are the two agencies relate to? As a typical cooperative member this move didn’t give us much concern but what really is the motive in the transfer? After a year and a half I got the answer. It is House Bill No. ____ (never got a copy) now pending in the Senate but before this pending bill came to being I have an inkling that since the DoF was created to formulate fiscal policy. Its basic function is revenue generation to ensure adequate financing needs of the Country. Carrying out this function has led to an expansion of the DOF's role over time. Yes! It’s a revenue generating department and you’ll say well what the hell is CDA doing there? Inevitably CDA will generate income in the near future but it will collect from the cooperatives of course. Those cooperatives they say is the instruments of equity, social justice and economic development, the individuals that form themselves a cooperative for a mutual help to augment needs in times of hardships, the poor farmers and fisherfolks, the marginalize majority and neglected, and those who toiled to form cooperative to protect themselves is not excused from the prying eyes of possible harassment.

Government Bureau’s under DoF are Bureau of Internal Revenue (BIR), Bureau of Customs (BoC), Bureau of Treasury (BoT), and the Bureau of Local Government Finance (BLGF). The Agencies and corporations under the DoF includes Insurance Commission (IC), Philippine Deposit Insurance Corporation (PDIC), Philippine Export-Import Credit Agency (PHILEXIM), Government Services Insurance System (GSIS), the Social Security System (SSS), and NOW the Cooperative Development Authority (CDA). This means Cooperative Development Authority is now part of the revenue generating agency of the government.