Introduction

In the Philippines, cooperatives play a vital role in promoting economic democracy, social justice, and community development. Governed primarily by Republic Act No. 9520, otherwise known as the Philippine Cooperative Code of 2008, these voluntary organizations empower members through collective ownership and democratic control. Among the fundamental rights afforded to cooperative members is the ability to access transparent financial information, which ensures accountability and fosters trust. This includes the right to obtain a statement of account, a critical tool for members to monitor their financial standing within the cooperative. This article explores the legal basis, scope, procedures, and implications of this right within the Philippine context, emphasizing its importance in upholding cooperative principles.

Legal Framework Governing Cooperatives

The Philippine Cooperative Code of 2008 (RA 9520) serves as the cornerstone legislation for cooperatives, repealing and consolidating previous laws such as RA 6938 and RA 6939. It defines a cooperative as "an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles."

The Cooperative Development Authority (CDA), established under RA 6939 and strengthened by RA 9520, oversees the registration, regulation, and promotion of cooperatives. It enforces compliance with the Code, including members' rights to information. Supplementary rules, such as CDA Memorandum Circulars, provide detailed guidelines on financial reporting and member access to records. Additionally, the Revised Corporation Code (RA 11232) and relevant provisions of the Civil Code influence cooperative operations, particularly in matters of contracts and obligations.

Cooperatives are classified into various types, including credit, consumers, producers, marketing, service, multipurpose, and others. The right to a statement of account is particularly relevant in credit and multipurpose cooperatives, where members engage in savings, loans, and share capital transactions, but it extends to all forms where financial accounts are maintained.

Rights of Cooperative Members Under the Law

RA 9520 explicitly outlines the rights and obligations of cooperative members to ensure democratic participation and equitable treatment. Article 52 of the Code enumerates these rights, which include:

Attending and voting at general assembly meetings.
Seeking elective positions, subject to qualifications.
Availing of the cooperative's services under prescribed conditions.
Inspecting and examining the books of accounts, minutes, share registers, and other records during reasonable office hours.
Receiving a share of the net surplus.
Securing fair and just treatment.
Other privileges as provided in the cooperative's by-laws.

The right to inspect records, as stated in Article 52(4), forms the bedrock for the right to a statement of account. This provision allows members to verify their personal financial transactions, such as capital contributions, dividends, loans, interest payments, and balances. It promotes transparency, preventing mismanagement or fraud by the board of directors or management.

Furthermore, Article 53 imposes obligations on members, including compliance with the by-laws and payment of dues, which in turn entitles them to information rights. The Code's emphasis on the principle of "open and voluntary membership" and "democratic member control" (Article 4) reinforces that access to account statements is not merely optional but essential for informed participation.

In addition to the Code, the Data Privacy Act of 2012 (RA 10173) intersects with this right, requiring cooperatives to handle personal financial data securely while allowing members access to their own information. Violations of privacy could complicate requests, but the overriding principle is member entitlement to their records.

Scope of the Right to a Statement of Account

The right to a statement of account encompasses a detailed summary of a member's financial interactions with the cooperative. This typically includes:

Share Capital and Contributions: Breakdown of subscribed and paid-up shares, including any patronage refunds or dividends accrued.
Savings and Deposits: For credit cooperatives, this covers deposit balances, interest earned, and transaction history.
Loans and Obligations: Details on outstanding loans, repayment schedules, interest rates, penalties, and payment history.
Other Transactions: Records of purchases, sales, or services availed, especially in consumers' or marketing cooperatives.
Net Surplus Allocation: Individual share of the cooperative's profits distributed as interest on share capital or patronage refunds.

This right is not absolute; it is subject to "reasonable office hours" and may require identification to prevent unauthorized access. Cooperatives can impose minimal administrative fees for reproduction of documents, as per CDA guidelines, but cannot deny access without just cause, such as ongoing audits or legal disputes.

In multipurpose cooperatives, statements may integrate multiple accounts (e.g., combining credit and consumer activities). For electric cooperatives under RA 10531 (National Electrification Administration Reform Act of 2013), members have analogous rights to billing statements, which align with the broader right to account transparency.

The frequency of statements varies: some cooperatives provide periodic (e.g., quarterly) statements automatically, while others issue them upon request. By-laws may mandate annual statements coinciding with the general assembly, where financial reports are presented.

Procedures for Requesting a Statement of Account

To exercise this right, members typically follow these steps, guided by the cooperative's by-laws and CDA regulations:

Submit a Written Request: Addressed to the board of directors or designated officer, specifying the period covered (e.g., last fiscal year) and the type of account details needed.
Verification of Membership: Present proof of membership, such as a membership certificate or ID.
Processing Time: Cooperatives must respond promptly, ideally within 7-15 days, as delays could be deemed unreasonable.
Inspection or Copy Provision: Members may inspect originals on-site or request certified copies. Digital access via member portals is increasingly common in modern cooperatives.
Appeal for Denial: If denied, members can appeal to the CDA, which may investigate and impose sanctions.

CDA Memorandum Circular No. 2015-05, for instance, outlines standard procedures for record access, emphasizing non-discriminatory treatment. In cases of large cooperatives, committees like the Audit or Ethics Committee may oversee requests to ensure compliance.

Remedies and Consequences for Non-Compliance

Denial of the right to a statement of account constitutes a violation of RA 9520, potentially leading to administrative, civil, or criminal liabilities. Remedies include:

Internal Resolution: Raise the issue at the general assembly or through the cooperative's mediation committee.
CDA Intervention: File a complaint with the CDA, which can order disclosure, impose fines (up to PHP 50,000 per violation under Article 140), or revoke registration in severe cases.
Civil Action: Sue for damages under the Civil Code for breach of contract or fiduciary duty, as the cooperative-member relationship is contractual.
Criminal Prosecution: For fraudulent concealment, charges under the Revised Penal Code (e.g., estafa) may apply if intent to defraud is proven.

The Supreme Court has upheld similar rights in cases involving corporate transparency, analogizing cooperatives to corporations in terms of member-shareholder protections. For example, jurisprudence emphasizes that denial without valid reason erodes trust and violates democratic principles.

Challenges and Best Practices

Challenges in exercising this right include bureaucratic delays, inadequate record-keeping in smaller cooperatives, or resistance from management fearing scrutiny. The COVID-19 pandemic highlighted the need for digital statements to facilitate remote access.

Best practices for cooperatives include adopting robust accounting systems compliant with Philippine Financial Reporting Standards for SMEs, conducting regular audits, and training members on their rights. For members, awareness campaigns by the CDA promote proactive engagement.

Conclusion

The right to a statement of account is a cornerstone of member empowerment in Philippine cooperatives, embodying the principles of transparency and accountability enshrined in RA 9520. By enabling members to monitor their financial stake, it safeguards against abuses and enhances cooperative sustainability. As the sector evolves, strengthening this right through updated regulations and technology will further align cooperatives with their mission of equitable economic development. Members are encouraged to assert this right responsibly, contributing to a robust cooperative movement in the Philippines.