Will SP Going To Approve CFI's Controversial MOA?

June 24,2010
Will SP Going To Approve CFI’s Controversial MOA?
By Quirico M. Gorpido, Jr.
Maasin City, Southern Leyte-Will the Sangguniang Panlalawigan going to approve Cebu Court of First Instance cooperative branch office to grant them blanket authority to automatically deduct employees’ salaries from the provincial treasurer for the amortization of their loans? This is unlikely to happen based on SP’s discussions of the matter during the two previous weekly sessions held at the provincial capitol here.
SP Florentino Fernandez informed the august body that CFI’s MOA was already referred to the Committee on Economics and Taxations and a letter-request from the employees of the different department of the provincial government.
He said the letter-request was also referred to the Committee on Laws which advised each employee that they can make individually for themselves a sort of an authority to the disbursement officers for them to deduct, but without the need of the MOA .
SP Albert Esclamado, as in their previous deliberations of the CFI’s MOA, said he was apprehensive in signing it because the bottom line is the issuance of a resolution for MOA’s approval, which is by giving the latter the blanket authority they are asking for.”This is my apprehension because there will be a conflict”, he said,” considering that we have also given the same blanket authority to the local SLEM coop, which is considered as the built-in cooperative of the province”
However, SP Teopisto Rojas,Jr. told his colleagues that several officials and employees of the province have written a strong letter asking him for reconsideration of the SP’s objection to their particular provision. The Chairman Committee on General Services has likewise believed that passing of a resolution to give CFI blanket authority is possible if he (Rojas) would waive his objection.
Although CFI is giving lower interest than the local SLEM coop, it was learned, but Vice-Governor Miguel Maamo, 11, was likewise apprehensive that “there might be a hidden agenda which we do not know yet. So we have to know thoroughly the details if the real interest is stipulated in the MOA”, he said.
Rojas further disclosed that upon his perusal of the controversial MOA, there’s no legal impediment neither a violation of any law, so the SP can legally approve the MOA.
SP Cesar Rey also suggested that before they will approve the MOA, the best way is to ask the Chairman Committee on Economics and Taxation and Laws to convene with the concerned employees and the CFI Manager with the Provincial Treasurer.
Nevertheless, Esclamado explained that although there’s no legal impediment if they will approve the CFI MOA, he believed that it is but unfair and unsound practice for the Sangguniang Panlalawigan because it requires the provincial government to have an automatic deduction of the loaners-employees salaries, the privilege which the SP has already granted to SLEMCOOP.”WE should not forget that SLEMCOOP is owned by our employees”, he said.
Esclamado further elucidated:”It’s enough that we give them business permit. This is what I see considering that right at the start they are already trying to kill SLEM because they are offering lower interest. What will happen in the next few months or years? There will be a buy out of all the loans and eventually SLEM will be losing because all CFI have to do is to campaign to all SLEM members to provide them credit and buy out their loans from SLEM”.
But Cesar Rey opposed saying that he doesn’t think CFI’s MOA will be going to kill SLEMCOOP.”If we will not approve its MOA with the provincial government we are depriving our provincial employees the right and desire to have a loan from another cooperative with lower interest than that of a bank or other cooperative”, he said.
But Esclamado, a former Limasawa Mayor, strongly disagreed and said that if they will not approve CFI’s foremost intention to have an equal authority with that of SLEM’s,it doesn’t mean that “we are depriving our employees the right to lend money from CFI”.”They can still borrow”, he said, “but to incorporate a provision that there will be an automatic salaries deduction, that I believed is unfair because in lending business, a small difference in interest can create an exodus of borrowers to another party and I’m sure it will happen. There would be a bank run because CFI h as a big capitalization.Again, if we will not approve the MOA, it does not mean that we deprive every lender of the right to do lending with the CFI. It is enough that we are giving them business permit to operate”.(Quirico M. Gorpido,Jr.)