Guidelines Governing Promotion, Organization, Registration, Development and Regulation of Cooperatives to be Established by Indigenous Cultural Communities (ICCs)/ Indigenous Peoples (IPs)

. ; . . ' CDA-NCIP Joint Memorandum Circular No. 01 Series of 2018 I SUBJECT "Guidelines Governing Promotion, Organization, Registration, Development and Regulation oj Cooperatives to be Established by Indigenous Cultural Communities (ICCs)/ Ind~genous Peoples (IPs)". Pursuant to the powers vested by Republic Act No. 6939, RA 9520 and RA 8371, the Cooperative Development Authority (CDA) and National Commission on Indigenous Peoples (NCIP) hereby jointly promulgates the following Guidelines. :section 1. Title - This Joint Memorandum Circular shall be known as the t"Guidelines Governing Promotion, Organization, Registration, Development and Regulation of Cooperatives to be Established by Indigenous Cultural Communities (ICCs)/ Indigenous Peoples (IPs)". Section 2. Legal Bases. This Joint Memorandum Circular is hereby entered 1into promulgated consistent with the following laws: A. R.A. 8371 othenvise known as the Indigenous Peoples Rights Act (IPRA}, particularly: Section 13 of RA 8371 - "Self Governance". The state recognizes the inherent right of JCCs/ IPs to self-govemance and self-detemlination and respects the integrity of their values, practices and institutions. Consequently, the state shall guarantee the right of ICCs/ IPs to freely pursue their economic, social and cultural development" Section 16 of RA 8371- "Right to participate in Decision-Making. /CCs/ IPs have the right to participate fully, if they so choose, at all levels of decision making in matters which may affect their rights, lives and destinies through procedures determined by them as well as to maintain and develop their own indigenous political structures. Consequently, the state shall ensure that the ICCs/ IPs shall be given mandatory representation in policy-making bodies and other local legislative councils" Section 20 of RA 8371-"Means for Development/Empowerment of ICCs/IPs. The Govemment shall establish the means for the full derJelopment/ empowe17nent of the /CCs/ IPs own institutions and initiatives and, where necessary, provide the resources needed therefor" <li Page Section 25 of RA 8371-"Basic Services. The ICCs/!Ps to special measures for the immediate, effective and continuing improvement of their economic and social conditions, including in the areas of employment, vocational training and retraining, housing, sanitation, health and social security. Particular attention shall be paid to the rights and special needs of indigenous women, elderly, youth, children, and differently-abled persons. Accordingly, the state shall guarantee the right of ICCs/ IPs to govemment's basic services which shall include, but not limited to, water and electrical facilities, education, health, and infrastructure. B. R.A.9520, otherwise known as Philippine Cooperative Code of 2008, particularly: Article 2 of R.A. 9520 - ('It is the declared policy of the State to foster the creation and growth of cooperatives as a practical vehicle for promoting self- reliance and hamessing people power towards the attainment of economic development and social justice. The state shall encourage the private sector to undertake the actual fomwtion and organization of cooperatives and shall create an atmosphere that is conducive to the growth and development of these cooperatives. Toward this end, the Goven1ment and all its branches, subdivisions, instrumentalities and agencies shall ensure ' the provision of technical guidance, financial assistance and other services to enable said cooperatives to develop into viable and responsive economic enterprises and thereby bring about a strong cooperative movement that is free from any conditions that might infringe upon the autonomy or organizational integrity of cooperatives" Art. 3 of RA 952 0- A Cooperative is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaking m accordance with universally accepted cooperative principles. C. R.A. 6939, otherwise knoum as CDA Charter, particularly: Section 3 (a) of RA 6939- ((Formulate, adopt and implement integrated and comprehensive plans and programs on cooperative development consistent with the national policy on cooperatives and the overall socio-economic development plans of the Government" 21 P age I 'and D. Memorandum of Agreement entered into by and between OP-OCS, CDA and NCIP dated December 4, 2017. (Annex A) fection 3. Purpose This Joint Memorandum Circular shall provide for the orderly promotion, ~rganization, registration, development and regulation of cooperatives ? rganized by and among Indigenous Cultural Communities (ICCs)/Indigenous Peoples (IPs), taking into consideration their unique culture, tradition, r ustomary laws and practices. ~ection 4. Coverage 'ifhis Joint Memorandum Circular shall cover all types of cooperatives brganized by Indigenous Cultural Communities/Indigenous Peoples (ICCs/ IPs) within or outside ancestral domains. Section 5. Definition of Terms. As used in this JMC, the following terms shall mean: a. Ancestral Domain (AD) - Subject to Section 56 of RA 8371 , refer to all areas generally belonging to ICCs/ IPs comprising lands, inland waters, coastal areas, and natural resoun~es therein, held under a claim of ownership, occupied or possessed by ICCsjiPs, by themselves or through their ancestors, communally or individually since time immemorial, continuously to the present except when interrupted by war, force majeure or displacement by force, deceit, stealth or as a consequence of government projects or any other voluntary dealings entered into by government and private individuals/ corporations, and 3I Page which are necessary to ensure their economic, social and cultural welfare. It shall include ancestral lands, forests, pasture, residential, agricultural, and other lands individually owned whether alienable and disposable or otherwise, hunting grounds, burial grounds, worship areas, bodies of water, mineral and other natural resources, and lands which ·may no longer be exclusively occupied by ICCs/IPs but from which they traditionally had access to for their subsistence and traditional activities, particularly the home ranges of ICCs/IPs who are still nomadic and/ or shifting cultivators; b. Area of Operation -refers to the area where the cooperative operates and where its members come from as provided for in their Articles of Cooperation and By-laws. c. Bond of Membership- refers to the condition where ICCs/IPs inside or outside Ancestral Domains organize themselves, to attain their common goals and objectives, in the. spirit of cooperativism d. Board of Directors - shall mean the body entrusted with the management of the affairs of the cooperative under its Articles of Cooperation and By-laws e. Certificate of Confirmation (COC) - is a written certification issued by the National Commission on Indigenous Peoples (NCIP) to bona fide indigenous peoples confirming his authenticity and ethnicity as an IP as defined/prescribed in Republic Act No. 8371 and its Implementing Rules and Regulations. This certification entitles IPs to enjoy all the rights, benefits and privileges guaranteed under R.A. No. 8371 and all other laws, decrees, Executive Orders. and legal issuance promulgated for the Indigenous Peoples. f. Cooperative Development Authority (CDA)- refers to the government agency created by virtue of Republic Act No. 6939 in compliance with the provisions of Section 15, Article XII of the Philippines Constitution of 1987 which mahdates Congress to create an agency to promote the viability and growth of cooperatives as instruments for equity, social justice and economic development. g. Cooperators - are those members mentioned in the Articles of Cooperation as originally forming and composing the cooperative and who are signatories thereof h. Cooperative - refers to an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaki~ in accordance with 1J.niversally accepted cooperative principles. 1. Customary Laws - refer to a body of written and/ or unwritten rules, usages, customs and practices traditionally and continually recognized, accepted and observed by respective ICCsjiPs. 41 Page J· Indigenous People Organization (IPO)- refers to a private, nonprofit voluntary organization of ICCs/IPs, duly accredited by the NCIP. k. Indigenous Cultural Communities (ICCs)/lndigenous Peoples . (IPs)- refer to a group of people or homogenous societies identified by self-ascription and ascription by other, who have continuously lived as organized community on communally bounded and defmed territory, and who have, under claims of ownership since time immemorial, occupied, possessed customs, tradition and other distinctive cultural traits, or who have, through resistance to political, social and cultural inroads of colonization, non-indigenous religions and culture, became historically differentiated from the majority of Filipinos. ICCs/IPs shall likewise include peoples who are regarded as indigenous on account of their descent from the populations which inhabited the country, at the time of conquest or colonization, or at the time of inroads of non-indigenous religions and cultures, or the establishment of present state boundaries, who retain some or all of their o~rn social, economic, cultural and political institutions, but who may have been displaced from their traditional domains or who . may have resettled outside their ancestral domains. 1. Indigenous Political Structure (IPS) - refer to organizational and cultural leadership systems, institutions, relationships, patterns and processes for self-governance, decision-making and participation, of ICCs/IPs such as, but not limited to, Council of Elders, Council of Timuays, Bodong Holders, or any other tribunal or body of similar nature; m. n. 0. 5I Page Member - includes a person who, adhering to the principles set forth in RA No. 9520 and in the Articles of Cooperation and By-Laws (ACBL), has been admitted by the cooperative as member. National Commission on Indigenous Peoples (NCIP)- refers to the agency created under RA 8371 under the Office of the President, and which shall be the primary government agency responsible for the formulation and implementation of policies, plans and programs to recognize, protect and promote the rights of ICCs/IPs. Registration -refers to the operative act of the CDA granting juridical personality to a proposed cooperative and is evidenced by a Certificate of Registration. ~ENJ·.<':I 4~· ·-- . .. - -~ - t-·-~ /:y- 1l~.UUIS SF.C!IO.'II \ 3 CI.RTIF TRUf. COP\' : : ) ~ ...; ~ection 6. Promotion. The CDA and NCIP shall initiate activities that will promote the organization of cooperatives among ICCs/IPs. Both agencies shall klevelop communication and information materials taking into consideration . their unique culture, tradition, customary laws and practices, and will [ik:ewise give priority to Cooperatives organized and registered pursuant to ,this JMC in their developmental programs. . ! Section 7. Support to Organization- The CDA, through its Extension Offices, in coordination with NCIP, shall provide priority support to Cooperatives to be organized by and among ICCsjiPs, which shall include 'organizational, technical, and the like. Section 8. Cooperators - Cooperatives may be organized within or outside jthe Ancestral Domains (ADs), with at least thirty (30) cooperators, under the following conditions: 1. Cooperatives established within ADs: 100% of the cooperators are co-owners of the AD with Certificate of Confirmation (COC) from the NCIP or Certification from the Council of Elders or IPS 2. Cooperatives established outside ADs: 100% of the cooperators are ICCs/IPs with Certificate of Confirmation (COC) from the NCIP pr Certification by their respective and recognized ICC/ IP elders or IPS. ! Section 9. Cooperative Membership- Membership shall be governed by the following terms and conditions: 1. Cooperative 'Arithin AD. Only IP who is a co-owner of, and residing in, the ancestral domain may be member, provided however, that his/her spouse, who is not a member of the community, may be admitted as [provided in the by-laws. 2. Migrant IPs and non-IPs who are residents of the AD may be admitted as provided in the by-laws, provided that their aggregate number shall not exceed twenty percent (20%) of the total number of members at any given time. A provision against dual membership may be provided m the Articles of Cooperation and By-Laws. 6I P age .. . I Section 10. Termination of Membership. Membership may be terminated pased on grounds provided in applicable existing laws and violations of ~ultural norms and customary laws as provided in the Articles of Cooperation. and By-Laws. ~ection 11. Bond of Membership. The bond of membership of ICCsfiPs t ooperative shall be either: a. Residential - members are IPs and non-IPs under Section 9 who are actually and physically residing within the area of operation. b. Associational members are from an Indigenous People Organization (IPO), recognized by the NCIP. Registration of such organization shall be valid and effective. c. Territorial - communally bounded and defmed territory under claims of ownership since time immemorial, occupied, possessed and utilized such territories. May have been displaced from their traditional domains or who may have resettled outside their ancestral domain. d. Ethnicity - is a primary sense of belonging to an ethnic group. Ethnic group is a consanguine in nature, meaning, the ties are reckoned by blood and traced through the family tree. Thus, the ethnicity refers to the household member's identity, by blood and not by choice nor by adoption / confrrmation for any ethnic group primarily the Indigenous Peoples (IPs). !Section 12. Venue for filing of application for Registration. Application for rregistration of cooperatives organized by ICCs/IPs, including amendments !thereto, shall be filed and registered with the CDA Extension Office having jurisdiction over the principal office of the proposed cooperative. lsection 13. Pre-Registration Seminar (PRS). The conduct of pre registration seminar (PRS) for prospective members of would-be cooperatives !organized by ICCs/IPs shall be in accordance with the MC 2017-02 (Annex B) rar:td this JMC. , !section 14. Documentary Requirements for Registration. The following !documents shall be submitted to the CDA in four (4) original copies, except I for item (1), below: 1. Cooperative Name Reservation Notice (CNRN); 2. Articles of Cooperation and By-Laws 71 Pa g e a. The Articles of Cooperation shall be signed by all the co-operators on each and every page; b. The By-Laws shall be signed by all the members on the adoption . page; and c. Articles and By-Laws shall be written in English but shall also provide a translation in accordance with the major IPs dialect. 3. Treasurer's Mfidavit 4. Surety Bonds of Accountable Officers (outside ADs)/ IPS Certification (within ADs) 5. Certificate of Pre-Registration Seminar (PRS) 6. Official Receipt of the Registration Fee 7. Endorsement from the NCIP Section 15. Cooperative Name and Restrictions. The name of the cooperative shall bear the name of ICC/IP group, the phrase "Indigenous Peoples" and the type of cooperative, e.g. Bugkalot Indigenous Peoples Multi IPurpose Cooperative (BIPMPC) or Mandaya Indigenous Peoples Farmer's IMulti-Purpose Cooperative (MIPFMPC) or Bontoc Indigenous Peoples Ob-obfo 1(BIPO). Its equivalent in the native tongue may be placed undemeath such !official name, e.g. Imajukayong Indigenous Peoples Credit Cooperative (IIPCC) "Pappango da Gimpong wey Imajukayong" ' Such name shall not be written in all capital letters except for the 'acronym which shall be indicated in parenthesis next to the name of cooperative. No cooperative shall be registered by the CDA whose name is identical, [deceptively or confusingly similar to that of any existing cooperative, or contrary to public policy, good morals or customs. ! Section 16. Area of Operation - The area of operation of a Cooperative within an AD shall basically be in the said AD, provided that it can expand 1operation outside the Domain in accordance with the by-laws. , In the case of a cooperative organized and established outside ancestral !domain, its Articles of Cooperation and By-Laws shall define its area of 1operation, provided that, it shall not include, or expand into, an AD without the FPIC of the owners of said AD. !Section 17. Registration Procedure. Registration procedures shall follow the Guidelines in the registration of Primary cooperative under CDA MC 2015-01 I I I BI Page For the step by step procedure on the registration see attached (Annex C) 'ection 18. Board of Directors (BOD) and Officers. The Cooperative shall . rave a Board of Directors who shall be selected by the corporators I members In an assembly called for the purpose, whose numbers shall not be less than five (5) nor more than 15, and whose terms of office, qualifications and disqualifications, including removal, suspension, and other disciplinary action, shall be provided in the Articles of Cooperation and By-Laws. The cooperative shall also have other officers/personnel to be appointed by the Board. Any appointee must not, however, be a relative of any member pf the Board within the third (3rd) civil degree of consanguinity or affinity, in deference to the principles of inclusivity and integrity. Section 19. Dual Membership. A prospective cooperative among ICCs/IPs tnay include in its by-laws a provision not allowing members of the other cooperatives within the same area of operation. ~ection 20. Developmental Programs. Cooperatives to . be organized and registered under this JMC shall be given priority in the developmental programs of the CDA and NCIP. Section 21. Settlement of Disputes. Should any dispute or controversy ~se in the implementation of this JMC which falls within the jurisdiction of the NCIP or IPS, the same shall be referred to NCIP or IPS, as the case may be for appropriate resolution, however, should the dispute or controversy arise ~ut of, or relates to, the Articles of Cooperation and By-laws, the cooperative ~aw and related rules, administrative guidelines of the CDA, the same shall be referred to CDA after failure of conciliation or mediation mechanisms bmbodied in the bylaws of the cooperative. 1 The foregoing shall be without prejudice to the NCIP and CDA ~oordinating efforts to resolve any dispute or controversy. ~Section 20. Monitoring and Inspection. The CDA Extension Office (EO) concemed shall monitor and conduct annual assessment of these 1cooperatives in coordination with the nearest NCIP Office to ensure ico'mpliance with this JMC, laws, rules and regulations, issuances of the GDA 1and other laws and other pertinent issuances of concerned government agencies. Section 21. Transitory Provision. Existing cooperatives involving ICCs/IPs iregistered with CDA previous to the issuance of this JMC are enjoined to 1strictly comply with the requirements prescribed hereof. 9I P a ge Tl).e necessary amendment to conform to the provisions of this JMC must be m r de accordingly within three (3) years from the effectivity of this JMC. Fcplure to comply with the amendment shall cause the cancellation of the Certificate of Registration after due notice. S~ction 23. Separability Clause. Should any part of this JMC be declared I null and void or unconstitutional, the validity of the remammg proVIsiOns h€reof shall remain in full force and effect. I S~ction 24. Amendment. All previous circulars and/ or guidelines issued by tHe CDA and the NCIP which are inconsistent with this JMC are deemed amended or modified accordingly. I S~ction 25. Effectivity. This JMC shall tal{e effect upon the approval of the CpA Board of Administrators and NCIP Commission En Bane and fifteen (15) days after submission to the Office of the National Administrative Registry (QNAR). 0cte•er 25 1 2G11 Approved: The Board of Administrators Cpoperative Development Authority (CDA) For the CDA: '/ /} ~ O~DO R. RAVANERA Ch erson Witness: I ROGEL! Hli P age Commission En Bane National C~mmission on Indigenous Peoples (NCIP) For the NCIP: N,JR.