Chamber cites SEC precedent in push for micro-cooperatives to self-certify finances
The Philippine Chamber of Cooperatives is urging regulators to spare the country’s smallest cooperatives from hiring outside auditors, arguing the requirement drains resources needed for growth.
The chamber appealed to the Cooperative Development Authority to let micro-cooperatives submit financial reports certified by their own officers rather than external accountants.
Under the proposal, a cooperative’s treasurer and chairman would sign off on annual reports under oath. The chamber emphasized this wouldn’t weaken transparency but would create “tiered” regulation matching cooperatives’ capacity.
“Micro cooperatives are often still struggling to establish their operations and secure their sustainability,” Chairman Noel D. Raboy (in photo) said. Forcing them to pay accredited CPAs “drains resources that should instead be used for business growth and member services.”
Raboy, a professional broadcaster, is a member of the PMN Service Cooperative.
The push follows similar action by the Securities and Exchange Commission. The SEC recently exempted micro enterprises from submitting audited statements, requiring only financial reports with a management responsibility statement signed by corporate officers.
“If the corporate regulator can cut red tape to help micro enterprises survive, surely the cooperative sector, which directly serves the grassroots and marginalized, deserves the same support,” said Edwin A. Bustillos, the chamber’s secretary-general.
He called the proposal timely. It aligns with the government’s ease of doing business initiative, he said.
The chamber represents primary cooperatives nationwide. It advocates for policies supporting the movement’s sustainability and growth.
Bustillos framed the appeal as consistent with the CDA’s mission. “We are asking the CDA to exercise its developmental mandate,” he said. Removing the financial hurdle would let micro-cooperatives “focus on what matters most: improving the lives of their members.”
The authority has championed cooperative growth. The chamber expressed confidence it would recognize the value of a more supportive framework.
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