This is with reference to the Inquirer news story titled “Napoles had P510M in PAF coop, says Luy” (Front Page, 8/6/13).
Obviously, the “coop” being referred to in the report is Air Materiel Wings and Savings and Loan Association Inc. (AMWSLAI) and, as its name clearly states, is a savings and loan association, not a cooperative.
As per record of the Cooperative Development Authority (CDA), AMWSLAI is not on CDA’s official list of registered cooperatives. No less than Article 140, Republic Act No. 9520 expressly prohibits the use of the word “cooperative” by any person or persons or organizations unless the entity referred to is duly registered as a cooperative with the CDA.
“ART. 140. Penal Provisions.—The following acts or omissions affecting cooperatives are hereby prohibited:
“(1) The use of the word ‘cooperative’ by any person or of persons or organizations, unless duly registered as a cooperative under this Code except as provided for under Article 130 hereof. In case of violation, the individual or individuals concerned, or in the case of an organization, its officers and directors shall, upon conviction, each suffer the penalty of imprisonment of not less than two (2) years nor more than five (5) years and a fine not exceeding Twenty thousand pesos (P20,000.00) or both at the discretion of the court;
“The Authority may motu proprio, initiate complaints for violations of this provision.”
In view of the foregoing, the CDA hereby wishes to clarify, for the record, that no cooperative under the name of Air Materiel Wings and Savings and Loan Association Inc. is registered with the CDA.
—EMMANUEL M. SANTIAGUEL, PhD, chair, Cooperative Development Authority