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First Movers Ink Contractual Solidarity

CAGAYAN DE ORO CITY – The NATCCO Network has moved closer to its Vision of becoming an integrated federation of co-ops as eight leaders signed the Contractual Solidarity Agreement.  The simple ceremony is  considered to be the highlight of the Co-op Leaders Congress from April 26-29 held at the Luxe Limketkai Hotel.
The document lists down specific moves or actions to be done by member co-ops and the NATCCO Network (as the federation) in order to achieve specific aims in the areas of Governance and Finance & Administration, Lending Supervision, Human Resources, Marketing & Communication, Technology and Shared Services, and Supervision and Stabilization Fund.
The document had two columns, one listed down what the primary co-ops would do, and the other what the NATCCO as federation should do.
Under Governance, primaries pledge to participate in General Assemblies and Ownership Meetings.
Under Finance & Administration, primaries are to submit financial statements and statistics to the federation while the federation will process the data to generate reports and program technical assistance.
Primaries are to deposit 30% of investible funds, deposit minimum 1% of liquidity fund to the NATCCO Liquidity Fund, and remit Co-op Education & Training Fund (CETF) in full.  The NATCCO in turn will manage said funds and offer services and push advocacies from the CETF collection. 
The co-ops leaders who signed the Agreement on stage were Edgardo Sanchez of Bukidnon Government Employees MPC, Edelito Sangco of Socorro Empowered Peoples Cooperative in Surigao del Norte, Jose Romeo Ebron of Oro Integrated Cooperative in Cagayan de Oro, Sylvia O. Paraguya, CEO of NATCCO, Efren Bravo of Panabo MPC in Panabo City, Corazon Tingson of Barbaza MPC in Antique, Dr. Eufemio Calio of MSU-IIT National MPC in Iligan City, Jose Castillo of SAMULCO in Davao City, and Marie Dee Belagan of Providers MPC in Isabela.
Under the Agreement, co-ops are also to increase their capital in the NATCCO and remit the annual network dues obligation of Php 5.00 per member, as resolved at the 2018 General Assembly.  The federation will ensure dividends above the inflation rate and utilize the dues for big ticket projects like marketing.
Co-ops are to remit 1% the Community Development Fund (CDF) to go directly to the NATCCO Resiliency Fund.  
Under Marketing, co-ops shall display the NATCCO logo in their offices, publications, uniforms, and communications.
For Technology & Shared Services, the focus is more on information technology which can be expensive.   The federation, in turn, will “make sure that co-ops have access to the latest technologies, advise on the minimum requirements of IT, and represent co-ops before IT partners.
Under Supervision, co-ops are to “Participate in the inspection and the supervision system of the federation, Agree to implement recommendations of the supervision team, Use ACCESS standards in planning and monitoring operations, and enroll in the Stabilization Fund.  The federation will develop compliance tools, prepare alternative solutions, prepare sanctions for erring cooperatives, and administer the Stabilization Fund to protect co-ops from bankruptcy.
The Contractual Solidarity Agreement is based on the 2018 Bangkok Declaration, which is aimed at the long-term sustainability of co-ops as observed in the practices of European models.  The Agreement’s preamble states: “the advantages (of an integrated) organization are: economies of scale, better control of complex procedures and markets, faster response to change, improved business flexibility to markets, control of future technologies, access to a variety of sources of capital and financing, up-to-date expertise, risk reduction, conquest of new markets and a leaner internal structure for business.”
As early as 2000, four years leading to the “Transformation Journey”, the NATCCO adopted the common logo as one of the steps in the standardization, the logo as the identity of one Network.
NATCCO’s Vision for 2022 is “a self-regulating network of cooperatives mobilizing resources and sharing the benefits of growth, towards the long term vision of becoming the most trusted integrated network of cooperatives.”

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