Section 19Sec./Art. 19

Cooperative Development Authority. Pursuant to its constitutional mandate to promote the viability and growth of cooperatives as instruments of equity, social justice and economic development under Republic Act -No. 6939 creating the CDA, the CDA shall be the government entity in charge of registration, regulation and supervision of CSF Cooperatives. In order to implement the provisions of this Act, authority is hereby granted to the CDA to create an additional department specifically designated for CSF Cooperatives.

(a) Regulation

(1) The CDA shall formulate policies on the registration of CSF Cooperatives, including the setting of criteria and qualifications for cooperatives and NGOs that are interested to join the CSF; and

(2) The CDA shall issue, with the assistance of the BSP, the implementing rules and regulations implementing the provisions of this Act.

(b) Supervision and Monitoring

The CDA shall enforce and monitor compliance of CSF Cooperatives with this Act and its implementing rules and regulations to promote the stability and sustainability of the CSF Fund. Thus, the CDA shall:

(1) Supervise the activities of the CSF Cooperatives to ensure compliance with this Act.

(2) Investigate and impose sanctions, including the suspension of operations of erring CSF Cooperatives, for violation of laws, rules and orders.

(3) Require the annual, semi-annual or quarterly submission, as the case may be, of reports, financial statements, board resolutions and such other documents as may be deemed necessary by the CDA to ensure compliance with this Act, its implementing rules and regulations and other rules.

(4) Conduct regular examination or inspection of the above documents to check the validity of reports submitted.

(5) Set the performance standards for the proper operation of all CSF Cooperatives.

(6) Submit an annual status report of each CSF Cooperative to the Department of Finance (DOF) and the BSP.