QUEZON CITY (PIA) — The head of the Cooperative Development Authority (CDA) has proposed a temporary moratorium on the registration of new cooperatives, urging prospective cooperators to integrate into established groups rather than forming fragile organizations prone to failure.
CDA Chairperson and Undersecretary Alexander B. Raquepo floated the measure Wednesday during the Cooperative Sectoral Congress organized by the National Anti-Poverty Commission (NAPC) Cooperative Sectoral Council at SotoGrande Neapolitan in Fairview, Quezon City.
Addressing sectoral leaders and delegates, Raquepo encouraged attendees to formalize the initiative through an official resolution, cautioning that unmanaged expansion often results in cooperatives folding shortly after formation.
"Sana tigil muna natin ang pagpaparehistro ng mga bagong kooperatiba. At kailangan gumawa kayo ng resolusyon para itigil muna natin," Raquepo said. "Ako, I definitely discourage. I rather advise them to participate, join existing. Less hurdle for them kaysa 'yung gagawa uli ngayon, tapos bukas wala na."
According to Raquepo, the Philippines counts nearly 25,000 registered cooperatives, approximately 24,700, with an aggregate membership base reaching roughly 14.3 million. Despite these numbers, he warned that paper cooperatives, inactive members, and duplicate registrations dilute the true strength of the movement.
Raquepo pointed out that joining viable, established cooperatives saves emerging groups the logistical and administrative hurdles of maintaining bare-minimum operations, such as keeping offices staffed and securing required regulatory licenses.
Beyond registration curbs, Raquepo warned the sector against "mission drift," advising leadership to master core competencies—such as credit and savings—before venturing into capital-heavy enterprises like housing, retail, and commercial transport.
"Bago ka mag-isip na magtayo ng negosyo, dapat 'yung kooperatiba ay malakas at pinagkakatiwalaan," he said, recalling his own experience in 2006 consolidating an over-diversified primary cooperative to avoid cross-financing risks and protect members' pooled capital.
To support organizational stability and ease compliance, Raquepo also highlighted upcoming CDA regulatory measures, including extending the validity of the Certificate of Compliance to a three-year term, mandating youth representation on boards and committees for succession planning, and accrediting federations and unions to supervise and examine their member-cooperatives. (JLN/PIA-NCR)
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