Management not being cooperative with GSIS co-op

Please allow us to bring to the attention of the public this serious concern of the members of the GSIS Multi-Purpose Cooperative (GMPC) so that the authorities concerned will act on the matter in accordance with the law.

The Cooperative Code of the Philippines (Republic Act 6938, as amended by RA 9520) was enacted pursuant to the declared policy of the State to foster the creation and growth of cooperatives as a vehicle for promoting self-reliance among the people, thus helping attain economic development and social justice.

For this purpose, the law directs government and all its agencies, including public corporations, to provide technical and financial assistance and other services to cooperatives to enable them to develop into viable economic enterprises. RA 9520 is even more categorical: it mandates all employers (including government offices), whose employees have organized an internal cooperative, to deduct all obligations due the cooperatives from the salaries, wages or other monetary benefits from co-op borrowers so long as they execute proper instruments and authorizations. RA 9520 also provides that a cooperative shall have a primary lien on the capital, deposit or interest of a co-op member in payment for obligations due the cooperative.

Past GSIS managements graciously complied with the law. They religiously effected the collection of co-op loan payments and other obligations through payroll deduction. They even required co-op borrowers to secure a clearance from the GMPC before allowing GSIS employees to retire or resign. But all these stopped during the time of GSIS president Winston Garcia. For reasons we can only guess, he did not allow the collection of co-op loan payments through payroll deduction. He even refused to implement the clearance requirement. As a result, GSIS employees were emboldened not to pay their loans. Many of those who retired left without paying. They took undue advantage of Garcia’s policy with gross and evident bad faith. As a result GMPC lost at least P30 million in terms of uncollected loans to the damage and prejudice of retired and incumbent GSIS employees, the beneficial owners of the cooperative.

The sad thing about this is that the new GSIS board and management continues to honor Garcia’s policy in defiance of the Cooperative Code. The co-op officers tried talking to the GSIS board chair about this, but the latter peremptorily denied their request. We hope President Aquino will intervene and take proper action on this matter.

—ALFREDO D. PINEDA, president, GSIS Retirees’ Association Inc.,

10 Road 16, Toro Hills,

Project 8, Quezon City