Guidelines in the Issuance of Endorsement and/or Other Technical Assistance Requested by Transportation Cooperatives

February 14, 2014

DOTC-OTC MEMORANDUM CIRCULAR NO. 2014-02-001

 

This is with reference to various requests of transportation cooperatives for endorsements and/or technical assistance in the pursuit of its objectives, including but not limited to franchise application, vehicle registration, etc. Thus, policy guidelines relative hereto is hereby adopted.

1. Reference.

Chapter XIV, Article 113 of R.A. 9520 provides that: Renewal of Franchise and Vehicle Registration. "Renewal of franchises and vehicle registration shall be granted to Transportation Service Cooperatives, provided such cooperative presents a Certificate of Good standing from the Authority and the OTC. . ."

The same was further reiterated in the Rules and Regulations implementing the Special Provisions of the Philippine Cooperative Code of 2008 under Rule V, Section 10, thereof.

Likewise, Article IX, Section 8, of the OTC Administrative Order No. 2000-001 provides that: Issuance of Certificate of Good Standing (CGS). "The OTC shall issue a Certificate of Good Standing to transport service cooperatives that have complied with the prescribed requirements. These shall entitle them to enjoy the rights/privileges under the cooperative code and Executive Order No. 898. In addition, the cooperative may use the certificate to support its application for a grant of financial/technical assistance from government or other agencies." acIHDA

Foregoing premises, issuance of endorsements and/or other technical assistance shall be governed by the following:

a. Endorsements and other technical assistance will only be accorded or given to transportation cooperatives with valid OTC Certificate of Good Standing.

b. Transportation cooperatives requesting for endorsements and/or other technical assistance shall submit supporting documents as requirements to wit:

1. Letter request specifying the kind or nature of assistance needed duly signed by the Chairman;

2. Photocopy of the OTC Certificate of Good standing issued to the requesting transportation cooperative;

3. Other relevant documents supporting the request depending on its nature.

2. Objectives.

1. To promote qualitative Transportation Cooperative sector in providing effective and efficient movements of passengers and goods, increase take home pay/income of its members as a measure to ameliorate their social and economic conditions in life.

2. To encourage compliance by the Transport Cooperative sector to the reportorial requirements as provided for under existing rules and regulations and serve as incentives in the pursuit of its objectives.

3. To enhance the Office of Transportation cooperatives (OTC) organizational capacity by providing relevance and value added to its monitoring and supervision as component of its accreditation function.

3. General Application.

This guideline is applicable to all transportation cooperatives of various modes either in land and/or sea/water and shall take effect immediately. All issuances/orders relative hereto are hereby modified and/or revoked accordingly. HSaEAD

(SGD.) MELCHOR V. CAYABYABChairman