Undertaking of Specific Reform Measures by Cooperative Development Authority Acting Chairman ( Memorandum Order No. 122 )

November 4, 2003

MEMORANDUM ORDER NO. 122

DIRECTING THE ACTING CHAIRMAN OF THE COOPERATIVE DEVELOPMENT AUTHORITY (CDA) TO UNDERTAKE SPECIFIC REFORM MEASURES IN THE CDA

In view of the urgent need to institute reform measures in the CDA, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, hereby direct the Acting Chairman of the CDA to lead the Board of Administrators and CDA Management in ensuring that the following tasks and reform measure in CDA are undertaken and completed within a period of six (6) months from date hereof, or earlier as indicated:

(a) Conduct of a comprehensive audit by an independent team, duly appointed by the Commission on Audit (COA);

(b) Conduct by professional research consultants of an Impact Evaluation Study of cooperative assistance programs, implemented by and through the CDA, particularly those involving the release of government funds;

(c) Adoption of appropriate measures such as, but not limited to, enforcing compliance with the terms and conditions of loan/grant agreements as well as audit rules, and imposing sanctions on erring or non-complying cooperatives;

(d) Reorientation and reengineering of CDA in coordination with the Presidential Commission for Effective Governance (PCEG) and the Cooperative Sector, with the end-goal of addressing key development policy and program issues, as well as the organizational, operational and administrative concerns of the CDA. The Reorientation/Reengineering Plan shall be consistent with the mandate of CDA under R.A. 6939 as well as with Civil Service rules and regulations. The said Plan shall be submitted to the Office of the President (OP) for approval within three months from date hereof;

(e) Strengthening of the CDA Internal Control Unit (ICU) as an integral part of the reengineering process, in compliance with Administrative Order No. 70, Series of 2003;

(f) Resolution of audit issues previously brought to the attention of CDA Management, in coordination with the COA and the Department of Budget and Management (DBM), and other matters related thereto;

(g) Preparation of a plan, in coordination with the Cooperative Sector, Office of the Presidential Adviser for Cooperatives (OPAC) and DBM, on how best to utilize the grant funds included in CDA's 2003 budget, consistent with the agency's mandate and redefined program thrusts, as well as applicable policy issuances by DBM, National Economic Development Authority (NEDA), National Credit Council (NCC), National Anti-Poverty Commission (NAPC) and OP;

(h) Adoption of measures to prevent deficit in CDA's 2003 budget;

(i) Preparation of 2004 budget taking into consideration the CDA mandate and needs of the Cooperative Sector, as well as current national government priorities; and

(j) Implementation of the basic programs pursuant to the Cooperative Development Action Agenda (CDAA), as circumstances and resources warrant.

The CDA shall submit to the Office of the President, through OPAC, a monthly accomplishment report on the directives under this Order and shall cooperate with and provide assistance to OPAC and other agencies while performing their respective official functions in line with this Order. Such assistance shall include provisions of office space and facilities as well as service vehicle/s as may be necessary.

This acting Chairman of CDA shall coordinate with the Presidential Adviser on Cooperatives in the implementation of this Memorandum.

The Memorandum Order shall take effect immediately.

DONE in the City of Manila, this 4th day of November, in the year of Our Lord, Two Thousand and Three.