SUCCESS STORY & HISTORY OF THE STA. CRUZ SAVINGS AND DEVELOPMENT COOPERATIVE

            In 1983, confronted by low production, and in order to respond to the need of providing financial assistance and other production needs of farmers, the Federation of Rural Improvement Club of the Sta. Cruz, Ilocos Sur organized the Sta. Cruz Credit Cooperative. An orientation and Pre-membership seminars were held with the assistance of Tagudin Credit Cooperative and the Department of Agriculture. The Sta. Cruz Credit cooperative was duly registered with the BACOD on December 18, 1984 with Registration No. RI-F-109 and was confirmed by the Cooperative Development Authority on February 14, 1991, Confirmation No. 362. The Sta. Cruz Multi Purpose Cooperative (Formerly Sta. Cruz Multi-Purpose Cooperative) covers the 49 barangays of Sta. Cruz, Ilocos Sur with a total area of 144sq. kilometers.The original twenty five (25) members pool their resources together starting a capital of PhP5, 000.00. With these limited resources, it started its operation with only one (1) staff. It was a slow, difficult climb upward. The first big break came when the coop sponsored a MUTYA NG KOOPERATIBA in December 1987 as a capital build-up scheme where half a million pesos (PhP500, 000.00) was raised. This was followed by a sacrificial merienda in April 1989 where the coop achieved an increase of three hundred thousand pesos (PhP300, 000.00) as an additional fixed deposit. Again a raffle draw followed in July 1989 with a net of four hundred thousand pesos (PhP400, 000.00) as share capital. Continuous capital build up has been programmed to finance the services of the coop. With these activities, it greatly enhanced and expanded the services to its members.Credit is the main line business of the Cooperative. Deposits in the form of saving and time deposits are also accepted.To serve better the members, solicitation of outside support was made. Tagudin Credit Cooperative entrusted some amount in the form of time deposit to expand the credit services. Philippine Business for Social Progress (PBSP) granted the coop a concessional loan of PhP200, 000.00 to implement livelihood projects for the benefits of poverty groups. To be able to implement, underground water development project to benefits sub-marginal farmers, the coop seek financial assistance from the Dutch government and CEBEMO was able to get grant of P389, 799.00. Likewise, to cater to the needs of small fishermen, the coop asked the assistance from the Presidential Management Staff who gave a grant of more than PhP400, 000.00. Eighty percent (80%) of the population of Sta. Cruz is engaged in farming. For the benefit of its farmer-cooperators, especially the tobacco growers, the cooperative entered into a contract with the Land Bank of the Philippines (LBP) and the National Tobacco Administration (NTA). The Financial assistance came from LBP and the Supervision of the beneficiaries is under the care of the NTA technicians.To benefit members who are engaged in cottage industries, traders, retailers, and small manufacturers and processing enterprises and members who want to establish projects which will help them augment their income, the coop availed a loan from the Department of Trade and Industries.

         Through the years, the resources and services increased and this motivated the Cooperative to go into Multi-purpose Cooperative, the amendment of articles of cooperation and by-laws of the STA. CRUZ MULTI-PURPOSE COOPERATIVE laws duly registered with the Cooperative Development Authority on July 4, 1994. A humble evidence of its progress, a land and building was acquired on April 1990 which now houses its office and other services rendered. A 3,000 sq. meters land was purchased on June 1991 wherein a Feed mill was built through the Ilocos Sur Provincial Government Assistance. Also a solar drying pavement was constructed to serve as post harvest facility.

         The feed mill manufactures animal feeds –for hogs, broiler, cattle and tilapia known as SCMP COOP FEEDS. As a back-up project of the feed mill, SCMPC has launched a project called the Baboyan sa Coop. The Coop provides each beneficiary a minimum of 5 hogs, feeds, veterinary medicines, technical supervision and assistance. Sixty percent of the project income will be given to the beneficiaries and 40% will be the share of the coop.

        Last February 1996, the SCMPC was able to get support from the Australian Agency for International Development-Philippine Australian Community Assistance Program (PACAP) in the amount of P750, 000.00 for the implementation of the Palay Trading and Support Facility Project. After five years of operation, the fund was transferred to the savings and credit to be used in its agricultural loan window. After 2 years, another support was received from PACAP, for the implementation of the Balikatan sa Kabuhayan Project in the amount of PhP600, 000.00 for livestock project-hog, cattle and broiler raising. It was September 1999, when the Feed mill was stopped due to a very tight competition with commercial feeds and low support of the members, however, member’s demand for feeds was responded by diverting commercial feeds to continue their project.

         Besides those mentioned earlier, the following services and programs were operated and offered but after several years they were closed:

1.      Medical Aid Program (MEDICAID) – this is similar to MEDICARE of the government. Enrollment in this program is voluntary on the members. All members are required to pay monthly premium of Php15.00 and when they are hospitalized/confined due to any kind of illness, the member will benefit an amount of P100 per day for the first 10 days or a maximum of PhP1, 000.00,  the benefit can only be availed once a year, for outpatient, benefit to be given will be PhP300.00- Must present doctors certificate and Official Receipt of the medicines bought. However due to low patronage of members the coop stopped this program on January 2003.

2.      Birthday Regalo. This is one way of capital build-up. Each member of the program will contribute to a common fund of P20/member. Every member of the program is entitled to a gift when his/her birthday comes. For regular member, 50% will go the share capital and 50% will go the Savings Deposit. For YTM 100% will go to Savings Deposit. This program was suspended in its implementation on April 2001.

3.      Marketing. The marketing division is engaged in the buy and sell of agricultural inputs/products, grocery items, feeds, and other products. Due to some operational problems it was closed on December 2002.

4.      Tractor. The cooperative acquired a tractor in 1991 to better serve its farmer members. Tractor service is available at a lower rate than those of other individual offering the same services. However, the tractor was sold on October 2001.

         It was a big shift for the cooperative, since January 2003, the focus of operation is savings and credit. The services and programs currently offered are the following:

 1.      Savings. The coop accepts deposits in the form of savings- regular and special- and time deposits. To help members increase their purchasing power, the cooperative become more aggressive in its savings mobilization.

Special savings products were launched on August 28, 2003. These products allow each member to choose the best option that suits his/her budget.

a.       Super Teens Savers (STS) - savings plan for youth to provide for future education needs.

b.      Mother’s Savings Plan(MSP)- Savings plan designed especially for mother (biological mother, adoptive mother or guardian)

c.       OFW’s Cash Builder (OFW) - a savings and investment program specially designed for Overseas Filipino Workers.

d.      Golden Savers Club (GSC) - designed for retirees, senior citizens & pensioners.

e.       Money Maker Prime Savings (MMPS) – it’s simple reassuring and within reach of everyone’s budget.

2.      Credit. The credit services answer the financial needs of members. It offers productive, provident and special loans. Since July 2001, the capacity-based lending (CBL) is gradually implemented. It was a great and difficult shift for the officers, staff and members. Lending policies were amended, forms were revised and the process and procedures were improved. The capacity of the member to pay is already the number one basis in granting loans and no longer capital leverage. The member is being rated using the 5C’s of credit- Character, Capacity, Collateral, Capital and Condition. Despite the changes and challenges brought by the implementation of CBL, there has been a considerable increase in the loan of portfolio and decrease in the delinquency rate from a Portfolio at Risk (PAR) of 40% to 8.19%. Most importantly, DOSRI (Directors, Officers, Staff and Related Interest) accounts are supervised and monitored. Car/motorcycle, farm equipment, fishing equipment, computer, cell phone and appliance financing are being offered. Followed by Jewelry Pledge Loan, Traveler’s Loan Window. The latest loan product that was launched is the Overseas Filipino Workers (OFW) Fast and Easy Loan.

3.      Youth Tipid Movement (YTM). This program designed to encourage minors to practice the virtue of frugality and save for their own future. YTM members are also given the opportunity to participate in the Mortuary Aid Program (MAP), if the parent so desires.

4.      Mortuary Aid Program (MAP). This is envisioned to assist financially the family of a departed member with each member contributing an amount to a common fund. Deduction is automatically made from the member’s mortuary deposit.

 The bereaved family of a MAP is entitled with the following benefit/s:

A.     Basic

Length of membership                                     Benefit

a.       New member – 2 years                                             PhP20,000.00

b.      Above 2 years- 5 years                                                       25,000.00

c.       Above 5 years to 7 years                                                   30,000.00

d.      Above 7 years to 10 years                                                 35,000.00

e.       Above 10 years to 15 years                                              40,000.00

f.       Above 15 years                                                                     45,000.00

B.     Additional Benefits

a.       P 10,000.00 for the active members enrolled at Kabalikat Sa Damayan Program (KDP).

b.      Additional for the following classes of members:

i. Diamond                                                      PhP10,000.00

ii. Gold                                                                       8,000.00

iii. Silver                                                                    6,000.00

iv. Emerald                                                               4,000.00

v. Bronze and no classification yet                      2,000.00

         However, to be the entitled with this benefit the MAP member savings deposit has an average daily balance (ADB) of at least PhP1, 000.00 for a period of one year before the time of death.

c.       Additional incentive of PhP10,000.00 for MAP members who are Special Savings Subscribers.

d.      An additional of PhP90, 000.00 for the family in case of accidental death.

5.      Scholarship Program. This was established to answer the demand of the young cooperators during a Youth Congress. This program is beneficial to those who have less in life but deserving students to pursue high school and college education. The youth must be a member of the YTM or a child of a regular member.

          Capital build up and savings mobilization is a continuous activity of the cooperative. The growth of the coop was nothing short of phenomenal. For many years of operation, SCMPC is constantly finding a fit between diverse needs of members and the appropriate strategy given the circumstances the cooperative find itself in.

         Membership classification started on June 2003. Members are classified as diamond, gold, silver, emerald and bronze. This is done annually.

        SCMPC has established its accounting systems and procedures. An integrated accounting system– computerized system of savings, loan and the general ledger- was installed to improved recording system. There is systematic recording, whereby daily reconciliation/balancing of records in the hard copy, individual ledgers and the general ledger (GL) is being done. Daily   checking is also done to minimize if not to eradicate errors in recording.

 Re-organization was done establishing 4 units/department:

1.      Administrative;

2.      Finance;

3.      Credit and collection;

4.      Accounting; and

         It is the aim of SCMPC to provide continuous trainings/seminars for the members, officers, and staff. Pre-membership Education Seminars (PMES) is done once a month. However, membership briefing is twice a week. The coop care for its members’ credit records. This is the main reason for the weekly conduct of Wise Borrower Seminar (WBS). Entrepreneurship seminars are also conducted to help augment the livelihood of members. The openness to the challenges of change of all people involve in the existence of the Sta. Cruz Multi-Purpose Cooperative and the implementation of the financial tools such as capacity based  lending, daily balancing, internal control and other activities facilitate the coop’s growth and stability. Likewise, the human resources are not left behind, the HR manual was revised and improved and the Code of Ethics is now placed.

        June 2006, SACDECO HONGKONG CHAPTER was organized through the efforts and sacrifices of the members of the Board of Directors headed by Eng. Jose R. Ping-ay and the untiring General Manager, Eva Garnace-Borja and  OFWs in Hongkong.  Initial members were only six, now they are more than 100 members.

       On the month of September 2006 two (2) branches were launched, SACDECO Santiago Branch, 2nd Floor Belarde Bldg., Poblacion Norte, Santiago, Ilocos Sur and SACDECO Bacnotan Branch, Leobeth Bldg.,Poblacion, Bacnotan, La Union on September 8,2006 and September 18, 2006 respectively. On March 16, 2007, the City of San Fernando Branch at La Union was opened. It is located at Diversion Road, Sitio 5, Brgy. Biday, San Fernando City, La Union.

        Because of the increasing number of members and so with their demands, this cooperative filed amendments for the expansion of area of operation on June 8, 2007. That this cooperative shall operate within Region I composed of four (4) provinces- Ilocos Norte, Ilocos Sur, La Union and Pangasinan. October 27, 2006, SACDECO entered into partnership with the Philippines Health Insurance Corporation (Phil Health) for the coverage of its members subject to the terms and conditions of the Phil Health Organized Group interface Scheme of the National Health Insurance Program (NHIP). The cooperative also had a partnership with Pag-IBIG on December 15, 2006 called as the “Pag-IBIG - SACDECO partnership Bayad Center/Acceptance of membership”.

        Aside from the above mentioned capital build-up and savings mobilization scheme, SACDECO launched also “Free School Lunch” on October 2007 as participation for the coop month celebration. On this event, youth from different schools within the municipality of Sta. Cruz including teachers participated actively and we generated savings deposits of more than a hundred thousand.

        To mention some laws or regulations to have contributed to the success of this cooperative are labor laws, coop taxation, Coop Code Amendments, Manual of Rules & Regulations (MORR).          

       With some forms of monetary incentives as to members are cash dividends, patronage refund (on delinquent member-borrowers); interest on deposits; interest rebates for early payments of loans; collection fee (deducted from loan but return if he/she comes to office for payment on or before due date). As to Officers, they also received the incentives mentioned above as to members plus honorarium/per diem during their meetings; cash gift/bonus. As to staff, they received incentives/benefits same as to members or officers plus 13th month pay/14th month pay; medical allowances, accrued leaves; monthly salary & COLA; rice allowances, productivity/loyalty pay; separation/retirement benefits. For non monetary incentives to members are (give always) i.e. tokens, bags, umbrellas, calendars; to officers, they are provided with insurance, clothing/uniform allowances & communication allowances and for the staff they are also provided with insurance, SSS, Phil health, Pag-ibig, clothing/uniform allowance & communication allowance. The SACDECO has its monthly plan, semi-annual; annual plan and 5 years institutional plan as the guide or basis of evaluating its accomplishment. It has a dream that this Coop shall be one among the cooperatives using ATM machine. COOP NATCCO Party list, have also contributed to the development of our office building and extended assistance for our coop’s lending operation. SACDECO also seek financial assistance from Banking institution like Land bank of the Philippines, Metro South Cooperative Bank, National Confederation of Cooperatives, Ilocos Sur Cooperative Bank, Nueva Segovia Consortium of Cooperatives and other Cooperatives or investors though lending and deposits. Likewise, financial assistance for the micro-entrepreneurs, farmers and fisher folks was received from the Hon. Cong. Eric Singson.

          The swelling growth of SACDECO is now beyond restraint made more possible through its affiliations and partnership with National Confederation of Cooperatives (NATCCO), Metro South Cooperative Bank (MSCB), Nueva Segovia Consortium of Cooperatives (NSCC), Northern Luzon Federation of Cooperatives (NORLU CEDEC), Ilocos Sur Cooperative Bank (ISCB) Land Bank of the Philippines (LBP), Asian Women in Cooperative Development Forum (AWCF), and Small Business Fund Corporation (SBC). And as SACDECO believe in the necessity of investment, it is the highest primary coop investor at ISCB, top investor at (NSCC) and one of the top investors at MSCB.

          SACDECO has started to become a “one-stop-shop” cooperative with the following allied services: ATM, acceptance of SSS and PAGIBIG premium payment, Western Union Services which include availability of NSO documents, and KASAPI (partnership with Phil Health).

          SACDECO continuously grow and the area of operation covers not only Region I through the amended article and by laws covering the entire Luzon where 2 more Branches in Pangasinan were launched, The SACDECO-ASINGAN and SACDECO- VillasisBranch in October 28, 2009. The fast branching was evidence of success of our cooperative. Our Board of Directors were also elected and selected as Directors in different Cooperatives and Federations.

          In 2010, SACDECO received a very prestigious award coming from Land bank, where: SACDECO awarded as the 3rd Placer in “Gawad sa Pinakatanging Kooperatiba” (non-agri category) and also awarded as the best in Savings mobilization and Best in Capital Build Up, more awards and citations were also given to SACDECO throughout the year. 

        Our Chairperson, Engr. Jose R. Ping-Ay who were the 1st nominee of the Coop-Natco Party List continue his congressional service through the joint effort of our members, officers, affiliates and other cooperatives supporting the “Partido ng Kooperatiba”.

        January 10, 2011 another blessing in SACDECO’s life. A new branch was born in Bayambang Pangasinan and on the same year Sacdeco Villasis- Satellite office was also created in Cuyapo Nueva Ecija, this seems to be unbelievable but its true! The same year, we were awarded with various awards and citations again as evidence of our Successful Operation. We were now 2nd Placer in the GAWAD PITAK and awarded once again with BEST SAVINGS MOBILIZATION and BEST CAPITAL BUILD UP, we were also awarded as 3rd Placer in the 1st CDA GAWAD PARANGAL.

“Sanitation and Water System Project” to maintain the cleanliness and to give a proper sanitation, we distributed toilet bowls and drums in the coastal areas in partnership with the Landbank Countryside Development Foundation, Inc, the Local Government Unit, Barangay officials and other concern Citizens. Likewise, we also have the water system project which serve as irrigation project and water supply to household near mountainous areas. These projects were implemented to help our farmers and less fortunate households to have a better source of water, likewise to improve lives in countryside.

      We also cater the needs of our people by giving and providing their social needs. Many organizations, Barangays, Groups and Individuals were granted with their request or their solicitations. We also donate computers, Chairs, White boards, other school facilities, school building, medals, prizes for raffle & draws and many more to the School Around us. We extend our help to the victims of different typhoons in the country and other tragedies outside the country through the NATIONAL CONFEDERATIONS OF COOPERATIVES like the earthquake in Chile,Tsunami in Japan and other affected countries with flood and calamities. We also give due recognition to our members during Special occasions. Our members Christmas Program were truly enjoyed because of many gifts and foods were served. Officers and Staff also have different Lakbay Arals to learn and share best practices of successful cooperatives and attended different Forums not only in Luzon, Visayas and Mindanao but also in Thailand, Korea, Bangladesh,Vietnam, Japan, Sweden and Canada. The lessons learned to this visits and forums were all shared to our members and applied in our day to day operation. We believed that lakbay-Aral, Seminars and Forums are one of the best investments we can have.

       To sum up for the rapid expansion and growth of SACDECO, the following are attributed: functional and thinking Board, technically and globally competent management and staff, operational compliance and adherence to the rules and regulations, increasing support by the general membership and strong linkages.

       As of December 31, 2011, SACDECO has a total regular membership of 15,929 and associate and youth members of 17,956 respectively.

       In SACDECO: We continue “Reaching Out, and Enriching Lives”

TUBAO CREDIT COOPERATIVE

 

I.      BRIEF HISTORY

        Forty-six (46) years ago on August 13, 1966, the Tubao Credit Union, Inc. (TCUI) as was officially called, now Tubao Credit Cooperative (TCC), was established with an initial capitalization of a mere P314.00 from 39 founding members through the initiative of a certain Belgian Missionary Priest by the name of JAIME QUATANNENS that the cooperative came to be.  The purpose was to alleviate the economic condition of the people from unscrupulous money lenders or loan sharks and to uplift their quality of life.  TCC was registered with the Cooperatives Administration Office (CAO) under RA 2023 and approved on October 22, 1966 under Registration No. 001503.  In compliance with PD 175, it was re-registered with the Bureau of Cooperatives Development under No. FF-030-RR in accordance with RA 6938 (The Omnibus Cooperative Law).  It was confirmed by the Cooperative Development Authority (CDA) under Confirmation No. 543.

        Not long after its organization, REVEREND FATHER EGBERT KRAYKAAMP, continued the work.  Steeped with cooperative knowledge and expertise, through his spiritual and academic guidance coupled with the unified and sacrificial efforts of the 5-member Board: the Treasurer-Manager and the committees with the presence of an ICM  religious sister in the Supervisory Committee – growth in membership began to be evident and operations gained momentum.

        Subsequently, REVEREND FATHER NORBERT LIETAERT came in as the Parish Priest.  Of equal zeal for love and service to the parishioners of Tubao, he continued the effort of his predecessors.  In his desire to help boost the development of the Tubao Credit Union, Inc. and the quality of service rendered to members he offered the eastern portion of the Father’s Convent as its permanent office, rent free.

       During its early years, the TCC was met with a “wait-and-see attitude” and other unfavorable reactions due to people’s negative experiences with other organizations.  This was then taken as a challenge and made “service above profit, above personal gain or interest” their battle cry.

 II.      LOOKING BACK WITH PRIDE: FROM SMALL BEGINNINGS TO MILLIONAIRES

       The Tubao Credit Cooperative, the pride of the Municipality of Tubao emerged as the Shining Star of Region I.  Its main office is strategically located at Poblacion, Tubao, La Union, a walking distance from the Pepito’s Park, Catholic church, Municipal Hall and other establishments and institutions of the municipality.  With its growing membership all over La Union, a P20M building is now standing majestically at Barangay Disso-or, Bauang, La Union along the McArthur National Highway.

        For forty-six years, the cooperative has touched the lives of its members and responded to the emerging needs of the communities within its service area – the entire province of La Union, Baguio City, Tuba and La Trinidad, Benguet.

        Envisioning it to be A GLOBALLY COMPETITIVE CREDIT COOPERATIVE, the TCC is geared towards uplifting the socio-economic conditions of the members through its various financial products and services.

A.    MEMBERSHIP

       Originally, membership in the TCC was limited only to residents of Tubao, La Union, but as years passed by, the neighboring communities clamored for membership due to their belief that the Tubao Credit Union Inc. can respond to their growing economic needs.  With only 39 founding members in 1966, a tremendous increase in membership was notable. As of December 2011, membership reached 25,392.  Majority or 70% of the membership come from the agriculture sector.

B.     ADMINISTRATION

1.      BOARD OF DIRECTORS

         As the cooperative gained its momentum for progress and development, there was a felt need to increase the number of Board of Directors from the original 5 namely: Gregorio M. Mapalo Sr. (Chairman), Constante L. Tino (Vice-Chairman), Josephine S. Lachica (Secretary), Isabelo A. Gonzales and Jose Z. Tavares (Member), to eleven (11) elected by the General Assembly and two (2) Ex-Officio directors namely the Manager and the Spiritual Director.  As a policy-making body, the Board of Directors promulgates policies towards the attainment of the vision, mission, goal and objectives of the cooperative.

 2.      COMMITTEES

        To aid the Board of Directors in its mandate to formulate policies, the different Committees work hand in hand with the Board of Directors in the latter’s legislative functions through their recommendations and all other matters relative to their mandated duties and responsibilities.

3.      MANAGEMENT

         The day to day affairs of the cooperative is entrusted to the management.  Originally, there were only three part-time employees; Manager-Treasurer, Bookkeeper-Teller and Appraiser-Clerk.  And now the Tubao Credit Cooperative has 16 full-time employees serving 25,010 members.  The satellite office at Disso-or, Bauang, La Union is manned by four (4) full-time employees.

 4.    GENERAL MEMBERSHIP/ASSEMBLY

        As per cooperative organizational structure, the highest policy-making body and the final authority is the General Assembly.

 C.    CAPITAL/ASSETS

        In 1966, the starting capital was only P314.00, but in just a matter of 9 productive years, the Tubao Credit Cooperative hit its first million mark with a Total Asset of P1.2M.  On its Jubilee Year, Total Assets yielded at P37.90M as of December 31, 1991.  On December 31, 2005, the cooperative stood at P435.76M in Total Assets.  On the last day of December 2011, Tubao Credit Cooperative posted a Total Asset of 629.92M

 D.    BENEFITS

        For the year 2011, a member-borrower received a Patronage Refund of 19% and a dividend of 13.7% on Share Capital.  While non-borrower received 12% dividend on share capital plus 3.4% additional incentive.

        In addition to the above-stated benefits, a member attending the Annual General Assembly meeting received a meal allowance.

 E.     SERVICES OFFERED

1.      LENDING/LOANS

Particular/s                                      Before                                                Now/At Present

a.      Loan ceiling                 P5 then gradually increased                      P300,000.00

for individual                          to P20, P30, P50 & P100.

                                                From P400 gradually scaled up

                                                to P1,000, P3,000, P5,000, P10,000

                                               & P15,000.

b.      Loan ceiling                

for couples                             P27,000                                                           P500,000.00

2.      KINDS OF LOANS

a.       Providential loans – to provide future and immediate needs of members such as but not limited to medical, hospitalization, educational expenses, etc.

b.      Productive loans – include commercial and agricultural loans for farm, equipment, business and other farm needs.

c.       Jewelry loan – in view of the high interest rates demanded by pawnshops and other similar financing institutions, the cooperative approved the use of jewelries as collaterals with “no interest” in adherence to its “service above profit” policy.

d.     Housing loan – assistance for employees with a maximum amount of P1.5M, payable within 10-20 years.

3.       OTHER TYPES OF LOANS

a.       Barangay Officials Loan Assistance (BOLA) – offered to elected/appointed Barangay Officials and employees. A maximum of 70% of the annual honorarium may be availed of and shall be payable in one (1) year on a monthly or quarterly installment basis. BOLA was made available in March 2011 and as of December 31, 2011, a total of 21 Barangays from La Union have already a MOA with the cooperative.

b.     Micro-Enterprise Loan (MILO) – loan assistance for those that have small scale livelihood projects/business. This product was introduced last October 2011 and as of December 31, 2011, a total of ten (10) members have already availed.

c.       Pension Loan (PENLO) – loan assistance for our pensioners/retirees-members. Members may avail of this loan up to 5x or 9x their monthly pension and may be paid in 6 or 12 monthly installments.  This product is already available since November 2011.

d.     Chattel Mortgage – Since December 2011, the cooperative is now accepting applications for loan with chattel as collateral.  Collateral may include but not limited to automobile-private or publicly used, tricycles, farm machineries, etc.

4.      DEPOSIT ACCEPTANCE

        Tubao Credit Cooperative accepts deposits as source of fund for its loaning operations.  It offers its members competitive interest rates of 3% PA (net) for savings deposits and 5% PA (net) for time deposits, much higher compared to other commercial and financing institutions.  Interest on savings deposit is computed quarterly (rate is not fixed – there are times when it goes up; and times when it goes down).

        The cooperative also have a Kiddie Savers Club with a total of 124 kiddie accounts and total deposits of P398,818.23 as of December 31, 2011.

5.      SOCIAL SERVICES

        For several years, the cooperative had extended Scholarship Grant to high school students of San Alberto Magno Academy (SAMA) but through the years, the Board of Directors came to realize that students can graduate high school but can not afford to go to college.  Thus, the Board implemented the Full College Scholarship Program and Educational Assistance to accommodate more beneficiaries.

6.      EDUCATION-INFORMATION PROGRAM

        Pre-Membership Education Seminar (PMES) held on site at regular schedules on a fix day every month is one of the requirements for TCC membership admission. An applicant goes through a seminar where he receives the basic knowledge on cooperative ideals, principles, duties, responsibilities, privileges limitations and benefits in a lecture-forum style.  The philosophy of “NO MAN IS AN ISLAND” will enlighten him so as not to stand alone anymore. Continuous education-information drive is encouraged through contacts, consultations with officers and management or through interactions with other members who are fully equipped on cooperative learning as derived from lakbay-aral activities locally or internationally.

7.      MORTUARY AID SYSTEM (SARANAY PROGRAM)

        The mortuary aid program is one of the services that motivated/inspired members of the community to join the cooperative movement.  Considering the expenses incurred when death occurs in the family, the Tubao Credit Cooperative in 1975 introduced the mortuary assistance to its members with the following categories: ages 18-50 – P2.00/death; 50+1 day to 60 years old – P5.00/day and 60+1 day to 70 years old – P10.00/death.  This program has combined features of membership expansion and capital build-up envisioned to be within the reach and capability of the lowly members in the far flung barangays within the service area.

         Claiming mortuary aid is easy and simple.  Just present to the Manager an official death certificate and on that very day, a partial amount is advanced, while the remaining balance can be claimed two or three days thereafter.  This program protects bereaved beneficiaries from inheriting a deceased member’s debts if indebted to the TCC.  As of December 2011, there were 20,422 members under the saranay program and the benefit or average amount given to every beneficiary  is P27,983.44 net.

8.     OTHER SERVICES

a.      Enhanced Housing Loan

         The present leadership is currently in its early stage of making the enhanced housing loan fully operational.  A member-borrower who can qualify with all the requirements prescribed of the said loaning program can avail a maximum amount P1.5M payable in 10-20 years.

 b.Western Union Services

       The Bangko Sentral ng Pilipinas granted the TCC permit to operate Western Union money transfer and started offering the service last July 2011.

III.       FACTORS THAT CONTRIBUTED TO THE SUCCESS OF TUBAO CREDIT COOPERATIVEDivine Guidance – TCC was started and initiated by priests.  With God’s blessings; it managed to survive purely under the principles of SELF-RELIANCE, true CHRISTIAN SPIRIT and apostolic sacrifices of the past and present officers, management and members.

  1. Divine Guidance – TCC was started and initiated by priests.  With God’s blessings; it managed to survive purely under the principles of SELF-RELIANCE, true CHRISTIAN SPIRIT and apostolic sacrifices of the past and present officers, management and members.
  1. Honesty and Dedication – Learning to say no to members helped a lot in the disbursement of funds of the cooperative.  The policy has instilled a discipline from among the members, and this is the reason why from the original 39 founding members of the cooperative have now 25,392 members as of December 2011.
  2.  Adoption of attainable and practical policies to conform to the regulations governing interests on deposits, real estate and jewelry collaterals as security of loan to protect the cooperative’s interest.  The adoption and implementation of meaningful and pro-members policies that match the needs of the situation and directed to benefit the greatest majority of members and not just a few.
  1. Tax exemption privileges.
  1. Efficient and effective management paralleled by the dynamic leadership of the Board in concerted efforts.
  1. Practice of desirable attitudes towards people and work/employment starting from the Board of Directors, the Committees, and Management staff down to the lowest employee
  2.  Observance of the three main disciplines that a credit cooperative member must follow: “save regularly, borrow wisely and repay promptly”.
  1. Conservatism in spending – observance of operating procedures of cooperatives as to expenditures.
  1. Rewarding benefits given to members at year’s end.  All the members are satisfied with their benefits at the end of every year’s operation.
  1. Strong membership support.
  1. Guided by the cooperative’s vision, mission, goal and objectives.
  1. The TCC strongly adheres to the international cooperative principles namely:

a.      Open and voluntary membership

b.      Democratic control

c.          Limited returns on capital

d.     Distribution of Net Surplus

e.         Continuous cooperative education

f.           Cooperation among cooperatives

g.      Religious and political neutrality

IV.      AWARDS RECEIVED

          Due to the outstanding performance of this cooperative, it received many awards and a few are sited below:

 ·         Plaque of Commendation for being a regional nominee to the CDA Gawad Parangal 2011

 ·         Mark of Gratitude in grateful appreciation of their invaluable support and assistance towards the successful implementation of various Cooperative Development in the Province of La Union given last October 26, 2011 at Diego Silang Hall, San Fernando City, La Union.

 ·         First Place – Outstanding Cooperative in the following dimensions: Assets, Paid-in Capitalization, Net Worth, Net Surplus, Membership and Volume of Business all in Ranked #1 (Provincial Level) CDA – October 2007, 2008, 2009 in Dagupan City, Vigan, Ilocos Sur and San Fdo. City, LU.

 ·         First Place – Outstanding Cooperative in the following dimensions: Assets, Paid-in Capitalization, Net Worth, Net Surplus, Membership and Volume of Business all in Ranked #1 (Regional Level) CDA – October 2008 in Vigan, Ilocos Sur.

 ·         Cooperative of the Year Award – (1st Place – Provincial and Regional Level) – For being a top performer cooperative based in net worth, paid-up, savings deposit, volume of business, net surplus and growth in membership.  CSF October 24, 2007.

·         Excellence Award – for the commitment & dedication in pursuing the improvement of the quality of life of its members & for the active involvement & collaboration in various cooperative projects & for being socially responsible in helping the community.  CDA March 10, 2007

·         Plaque of Appreciation – as top CETF remitter.  NATCCO May 26, 2006

·         Plaque of Appreciation – as top depositor of the NATCCO Central Fund.  NATCCO May 26, 2006

·         Recognition Award – in recognition of its over one million premium production and in appreciation for continuous patronage of CISP.  CISP August 5, 2005

 

·         Plaque of recognition – In pioneering in innovative ways of providing protection to its members through the Saranay Aid System, in setting effective delinquency control mechanisms and for adhering to the principle of self-reliance in the delivery of services to its members and the country.  CUP January 26, 2003

·         Certificate of Excellence (2nd Place Credit Category) – In recognition of the vital role in promoting self-reliance, the attainment of economic, sustainable development and social justice thus serve as a model for others to emulate and the exemplary contributions to the total development of the Filipino people.  CDA November 9, 2002

·         Special Award – for being one of the Most Outstanding Credit Cooperative.  Dagupan City November 28, 2001

·         Certificate of Recognition – for its exemplary credit services which generated innumerable livelihood projects that uplifted the economic well being of its members as well as the welfare of the whole community thru various Social Development Programs thus serving as Model among all cooperatives in the Province.  San Fernando City October 20, 2000

·         Trailblazer Award – for the pioneering efforts and every innovative approach in administering an in-house mutual benefit system known as Saranay Aid System over 25 years provided immediate assistance to the heirs of a departed member.  CUP January 30, 2000

·         Plaque of Recognition – for being one of the millionaire cooperatives in the province of La Union.  October 30, 1998.

·         Hall of Fame Award (2 times) – for the most outstanding credit cooperative in Region I.  November 12, 1995; for meritorious and dedicated service of invaluable contributions to the vision and mission of the Cooperative Movement in La Union.  November 9, 1995.

          Finally, the Tubao Credit Cooperative Mission is to ensure survival and viability of cooperativism as a collective enterprise as well as a way of life such that the socio-economic status of its members is alleviated. Thus, TCC is an economic vehicle, a mover, a shaker, and a shaper of financial stability of its members in particular and the communities it serves in general and to compete locally and globally with other cooperative in terms of deposits, income, assets and investments.

             The San Joaquin Multi-Purpose Cooperative: A Closer Look

         The San Joaquin Multi-Purpose Cooperative was originally a barangay-based cooperative formed primarily to serve the people within the locality comprising mostly of farmers.  It was formally organized in March 1984 with the initiative of a two ordinary farmers, the late Celso G. Rasalan & late Camilo B. Rasos Sr. (the founders) through the assistance of the Provincial Cooperative Development Office under the Dept of Agriculture. Its initial paid-up capital was P17,200.00 contributed by 17 incorporators most of whom were members of the defunct Samahang Nayon. Then on May 10, 1984, it was finally registered with the then Bureau of Cooperative Development with the name, San Joaquin Samahang Consumers Cooperative Inc. under Certificate of Registration No. RI-FF-086. It all started as just a consumer’s store and for quite a while, the Cooperative operated accordingly with the business plan. However, in 1987, it was observed that farmers tend to borrow capital from loan sharks. The Officers, as sensitive as ever to the needs of the members, resolved for the creation of a Credit Department that accepts Savings and Time Deposits at an interest rate more competitive than average commercial banks. Thus, indirectly savings mobilization and Capital Build-up is a common problem to all coops was neutralized.  It also offers providential and agricultural loans at minimal rates slowly eradicating the usurers that has been sucking the blood of these poor farmers. Simultaneously, its scope of operation extended to the adjacent barangay. With these developments in so short a time, the Board of Directors, in anticipation of further changes and developments, proposed for major amendments in the by-laws. And so, in the General Assembly of March 1988, the members unanimously approved the proposed amendment of the by-laws and converted its name to San Joaquin Multi-Purpose Cooperative (SJMPC). So, on March 2, 1991, its new identity was finally confirmed by the Cooperative Development Authority under Confirmation No. QC-513.

             The Credit Department gained tremendous popularity in the community, membership had increased phenomenally. This paved the way for the formulation of control measures to protect the interest of the cooperative. Soon, the Cooperative adopted the standard operating procedure of banking institutions enforcing all types of loans to be backed-up by collaterals which eventually is appraised and religiously checked by its own Loan Collector/Appraiser.       

           As the Cooperative developed and expanded, the members’ “basic needs” seemed to increase enormously. This time, they wanted a gasoline station to be established. As the saying goes, “if there is a will, there is a way.” Applying in all the oil companies in the country, the cooperative was armed only with one thing, its quest for growth and development. But who would believe in a small rural-based organization ran by farmers?  Only the Caltex Philippines did, and so the Gasoline Station Department was put up.  As the Gasoline Department became the top grosser of the Cooperative, the need to have its own Hauling Tanker was figured out. 

          From then on, there was never a year to relax for the SJMPC as it pursued community growth and development. In 1991, a warehouse was constructed in a 542 square meter-lot that was acquired for One Hundred Thousand Pesos (P100,000.00). Through the self-help (free-labor) of the members, the edifice was erected. After which, a six-wheeler ELF truck was procured to haul and deliver farmer’s products particularly palay. The Cooperative was then accredited by the National Food Authority .

          In 1992, SJMPC was awarded as the Most Outstanding Multi-Purpose Coop in Region I. The following year 1993, a Certificate of Recognition from CDA National Level was received at the same time, awarded as 2nd Placer, Outstanding Entrepreneurial Coop, National Level by the CDA.

           The year 1993 was a very remarkable year in the annals of the San Joaquin Multi-Purpose Cooperative. It was during this year that its economic impact was felt not only within the community but also reverberated throughout the country. Unexpectedly, with the support and trust of the Municipal Agricultural Office, who became SJMPC’s nominator, the Cooperative was adjudged as OUTSTANDING SMALL FARMERS/FISHERFOLKS ORGANIZATION and a runner-up in the PARANGAL NG NEPA in the National Category. With this achievements, the SJMPC received a cash award of Two Hundred Thousand Pesos (P200,000.00) that was eventually used to purchase a Satake Cono Ricemill.  This turnaround had cemented the relationship between the SJMPC and the Municipal Agriculture Office. The latter’s trust with the former was retaliated with  unparalleled zest  and fervor in the implementation of its projects, i.e.  Tilapia Culture, Mahogany Tree Planting, Mango Propagation, Cattle Fattening and other related livelihood projects.

           In 1994, as the Cooperative continued to grow and its membership multiplied by folds, a Consumer’s Store- Branch and a Koop-Drug were established in front of the Sarrat Public Market.   In 1995, a generator was bought to combat the rampant power failures that proved to be a menace not only to the Cooperative but also to the entire business community. July 10, 1996. A fully air-conditioned office building was completed just beside the gasoline station. This new office where member-depositors & borrowers were accommodated was equipped with computers to facilitate transactions that seemed to have increased by the days. In December of that same year, an XLT-Service Car was acquired.

           The Cooperative truly has ventured in almost every business that the members basically need.  But as an evidence of its discontentment, its Directors proposed a line of business everybody hates to patronize. A FUNERAL PARK! So, at the 2nd Quarter of 1998, the development of the proposed MEMORIAL PARK began.    

          As a proof that the government extol the achievements of ordinary citizens, the cooperative posted an award winning-streak that is yet to be surpassed among cooperatives in the Province.  Here are some:

           August 1998. The Department of Agriculture through the Land Bank of the Philippines awarded a SHEGA III Moisture tester to the Cooperative.

           In October 1998, the SJMPC was awarded Fifty Thousand Pesos (P50,000.00) and a Plaque of Recognition  by the Cooperative Development Authority for being chosen as the country’s Most Outstanding Primary Multi-Purpose Cooperative.

           That same month, the Cooperative was given a Certificate of Appreciation by the Cooperative Union of the Philippines, Certificate of Outstanding Achiever and Five Thousand Pesos(P5,000.00) in cash by the CDA-DEO.

           As the Fiscal Year was about to end, in compliance to requirement of  Caltex Phils. Safety Regulations, a New Hauling Tanker (14k lits capacity) was acquired. Also, a multi-cab was purchased partially out of the NFA-Cooperative Development Incentive  Fee.

       The cooperative, represented by its Chairman, Mr. Celso Rasalan, culminated the year by availing a loan worth One Million Pesos (P1,000,000.00) from the Land Bank of the Philippines for additional working capital that would supplement existing finances to meet the demands of the ever business minded BOD’s of the SJMPC in the coming years,. Likewise to establish a relationship with the pro-coop bank institution in the country, particularly the Land Bank of the Philippines. During this year, the coop was also awarded as the Leading Primary Cooperative in Region I.

         Few years after, the Land Bank of the Philippiness noticed the financial growth and performance of the Coop, thereby it became one of the Gawad Pitak National Contenders in 2000. Since then, the San Joaquin MPC never misses to receive awards from various agencies every year. To name a few, 2001 Special Award for being an Outstanding Primary Coop given by CDA, National level; 2001 & 2002 Ist Runner Up-Best Coop by LBP-Integrated Rural Financing; 2001 4th Placer Outstanding Agri-MPC by CDA Nat’Level; 2002 3rd Placer Outstanding Agri-MPC, CDA Nat’l Level; in 2004 Loyalty Award by Coop Union of the Phils.

          With more than a decade of fruitful existence, the Cooperative never stop in pursuing its goals: SERVICE TO THE PEOPLE AND TO THE COMMUNITY. A bank-like operation was installed thru the assistance of the Land Bank of the Philippines. A teller cage was donated to formalize its operations, resulting to more member-depositors and borrowers.

          So, in 2003, the Loans & Savings Department was relocated to the newly constructed 2-storey building fully furnished and equipped to be able to accommodate better its clienteles. The second floor serves as a multi-purpose hall: a venue for meetings, conferences, trainings & seminars and to accommodate visitors who are having their Lakbay-Aral. Likewise, this multi-purpose hall is being used by the Education & Training Committee for their monthly Pre-Membership Education Seminars where prospective members are educated with their duties and responsibilities that would make them cooperative worthy. Also trainings that focus in the enhancement of skills of individual and associate members, their beneficiaries, the management & officers are periodically conducted.  In these new ventures, SJMPC showed exemplary performance again. In the year 2006, SJMPC was awarded as Top 2 SMB Dealer for-Central North Luzon Area  & for 2007 Top 1 SMB Dealer for Central North Luzon Area respectively. Then in 2007 Excellence Award was given by CDA-Dagupan Extension Office; And  for the past 5 consecutive years, that is from 2005 to 2009, SJMPC was a  Gawad Pitak Awardee ranked 4th placed; 3rd placed; 4th placed; 2nd placed & 2nd placed again for 2009. On the year 2011, when the San Joaquin MPC received the Hall of Fame Award by Land Bank of the Philippines Gawad Pitak.  Another award received for the year 2011 was the CDA Gawad Parangal as regional nominee in the national level.

         Out of the Gawad Pitak  Prizes received from LBP with a  sum  of 1.525M, the Cooperative was able to modernized its recording systems and procedures through acquisition of computer units, receipt and passbook printers. The Marketing Center & Coca Cola Sales Office was constructed and a Forklift for the Coca Cola and San Miguel Beer Dealership was acquired. From the 2008 Gawad Pitak Prize, (second placer), an expansion of the Marketing Center was constructed to accommodate more inventories. And for the latest Gawad Pitak Prize (second placer) for 2009, the Cooperative was able to purchase a digital fuel dispenser for the gasoline station. These facilities acquired were just the fruits of the concerted efforts and sacrifices of the officers, management staff and the general membership.     

             The San Joaquin MPC values education. Officers and Staff are sent to seminars, conferences, team shops and trainings to upgrade their skills and capabilities. Lakbay Aral is also conducted to various successful coops and institutions in nearby provinces.  

           Today, with the cooperative efforts from its highly competent BOD’& different Committee Members, forty four motivated and efficient Management Staffs and of course a very supportive membership, the San Joaquin MPC have metamorphosed from a mere consumer’s store to a multi-line business that is expanding in response to the demands of its constituents.  Its total assets have ballooned to P121,766,959.27, Share Capital to P20,855,162.42, and  its  membership to 3,039 as of December 31, 2011.        

 

Source: Jacqueline de Leon (RU)

              

 

 

 

 

Director's Corner

Possibilities and Directions…

CDA DEO in the Year2012

            The Cooperative Development Authority - Dagupan Extension Office (CDA DEO)  as the lead government agency in cooperative promotion, development and regulation in Region I endeavors to continually focus its efforts and resources on the sole mission of ensuring the safe and sound operation of cooperatives. Journeying onward to the overall vision of a CDA that is an effective and efficient regulatory agency working towards the development of viable,sustainable, socially responsive and globally competitive cooperatives,the CDA DEO, with its thirty three (33) technical and administrative personnel, commit to be among the building blocks that would support, reinforce and complement the efforts  read full post>>

 



Contact Details


Contact us at:

Telefax: (075 522-8285

Email us at:

cda_dagupan@yahoo.com

cda_dagupan.region1@yahoo.com



Visit us at:

REGIONAL OFFICE

Regional Director: Ray R. Elevazo

3rd Flr., Siapno Bldg., Perez Blvd., Dagupan City

Pangasinan Provincial Office

3rd Flr., Siapno Bldg., Perez Blvd., Dagupan City

Assigned CDS-II
Arlenne C. Espinoza
Filipina H. Porio
Mylene M. Mazo
Marcela B. Butay
Imelda S. Fronda
Edilberto Unson-PCDS

La Union Provincial Office

Aguila Road, San Fernando City, La Union

(near OPAG-R1)

Assigned CDS-II

Bernie C. Membrere
Constancia A. de Guzman
Arnold F. Oloteo - PCDS


Ilocos Sur Provincial Offices

1) Coop Bank of Ilocos Sur, Candon City, Ilocos Sur

Raymund N. Pilorin-CDS II

2) Provincial Capitol, Vigan City, Ilocos Sur

Teresita A. Bonuan-PCDS

Ilocos Norte Provincial Office

Bacarra Training Center, Bacarra, Ilocos Norte

Assigned CDS-II

Primo B. Respicio
Bob Leonord P. Hoover-PCDS



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