After almost four years of follow ups, submission of requirements, revisions, and additional requirements, the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) approved the consolidation of the Misamis Occidental Coop Bank (MOCB), the Coop Bank of Davao del Sur (CBDS), and the Coop Bank of Surigao del Sur (CBSS) during its meeting last 16 February 2012.  These three coop banks will now become a single entity under the name Consolidated Coop Bank (CCB). 

CCB will automatically have three offices:  Main office in Digos City, and branches in Mangagoy, Bislig City, and Oroquieta City.  It aims to transfer its main office to a major City in Mindanao, most likely Davao City.  It also plans to open four more branches in 2012 in the cities of Cagayan de Oro, Iligan, Surigao and Tagum.

Celebrating Cooperation, Efficiency and Volunteerism

CCB is a celebration of the triumph of a determined cooperative effort.  MOCB’s resurrection is a joint effort of major coops of Misamis Occidental (Paglaum MPC, Clarin National HS Family Coop and DEP ED Mis Occ MPC), Misamis Oriental (Coop Bank Mis Or), Cagayan de Oro (FICCO, OIC, Allied Services MPC, PFCCO Mindanao League) and Bukidnon (DEARBC).  MOCB was closed by BSP in 2003 and was reopened, on the promptings of then CDA X Director Manuela Pelaez, on April 16, 2007. The new coop investors believe in cooperative effort among coops.

The said cooperation was actually replicated in Davao del Sur when USPDSCC, BCS, DASURBACO, Silangan MPC, SAMULCO, Agdao MPC and JAT MPC joined forces to save CBDS in 2003.   The Bank’s turn-around was hastened when FICCO joined in August 2007.

On the other hand, FICCO and PFCCO ML were the only new investors to come to the rescue of CBSS.  But the cooperation and support of the incorporators, particularly the Provincial Coop Union, Pag-asa MPC, Dona Carmen MPC and Mangagoy Market Vendors MPC also made possible the reversal of fortunes of this Bank.

The turn-around of MOCB, CBDS and CBSS was made possible by instituting efficient operations anchored on volunteerism.   Efficiency enabled these Banks to pursue price leadership forcing the major players in their area of operations to align their interest rates.  Local needs were also identified and responded to.  But the more telling move is the emphasis on volunteerism which sets the tone for good governance to come into full play.  No more making the coop banks as milking cows, or source of perks and junkets, or employment opportunities for relatives.  The new set of leaders sacrificed a lot to make these coop banks viable and profitable.

One would better appreciate the result of the hard work and commitment invested into MOCB, CBDS and CBSS by reflecting on the following table that shows important indicators at the start when the turn-around strategies were implemented, in comparison with recent data culled from the audited financial statements of the three banks for 2011.    

From the said table, we can clearly appreciate the growth in assets (481%), current loans (1,149%), deposits (683%) and equity (841%).  While past due also increased by over P 10 million, the three Banks made certain that all of these are 100% covered by allowance for loan loss.  This is in great contrast to the fact that at the time of FICCO’s entry, only 26% of past due are provided for with loan loss allowance.

Another indicator worth highlighting is the profitability rate.  From a combined negative 113% at the time of FICCO’s entry, it now reports a positive 42%, well above the industry average of 19%.  Even the BSP was surprised by this achievement.  But it was explained to them that efficiency, volunteerism and sacrifice produce good governance making possible the high profitability rate.

More consolidations

                FICCO will not stop with the consolidation of MOCB, CBDS and CBSS.  The CCB now will seek out other coop banks willing to join in a much bigger consolidation.  The possibilities are the Metro South Coop Bank (Makati), Capiz Settlers CRB (Roxas city), and the Coop Bank of Cebu (Cebu City).  Hopefully, by 2015, we will have a P 5.0 billion coop bank with several branches in major towns and cities of the country.

Special thanks

Giving credit to whom credit is due, the officers and management of FICCO, MOCB, CBDS and CBSS wish to put on record their heartfelt thanks to former Senator Agapito "Butz" Aquino, the recognized leader emiritus of the coop movement of this country, for his unrelenting support to get the approval of BSP and the Monetary Board for CCB. (ibdaba, 18 Feb 2012)

Consolidated Coop Bank?  How will it affect me as coop member?

                The effort to consolidate coop banks is part of the ICFS (Integrated Coop Financial System) that FICCO, together with other forward-looking coops, is working hard to establish.  The resulting situation the ICFS aims for is for the grassroots to have their own viable and profitable coop bank, coop insurance and coop asset management.  Achieving this will allow ownership by those who have less in life of financial institutions that are presently the exclusive domain of the elite of our society.  The ultimate goal of the ICFS is to redistribute wealth to many, lessen poverty and hopefully develop the country side.

The benefits of consolidation range from the mundane to the heart-warming, even spirit- lifting.  Consolidation brings economy of scale.  From the present three sets of board of directors, CCB will just have one set.  Expenses for board meetings, and the corollary travel costs will also be reduced to one-third.  The savings will enable the Bank to expand its personnel complement, especially the BSP-mandated compliance officer, risk management officer, and internal auditor.

                An immediate benefit from economy of scale is improvement in bottom lines for all the profit centers.  This will translate into additional dividend and patronage refund to be distributed by the investing coops to their individual members.  This exemplifies wealth redistribution.  Our present banking system is owned and controlled by few rich families.  Our coop bank is owned by our coops which are owned by the members, most of them belonging to the grassroots.  So we now have a situation that a bank is owned by the people, mostly coming from the C, D and E classes of society.  Thus, instead of the elite enjoying exclusively of the income of the banking system, we, the multitude, will now have our share.  And as we expand the reach of our coop banks, more and more people will be patronizing its services, with these same people reaping the fruits of cooperation.

                Consolidation will also allow us to open branches wherever we wish, subject to capital and other requirements.  This will enable our coop bank to bring banking services to coop members, including but not limited to remittance, ATM, checking account, letter of credit, FCDU (maybe we can persuade CJ Corona to deposit some of his dollar accounts in CCB), and many others.  Again, most of these services are available only to the elite or to people in highly urbanized areas.  Through our coop bank, we too will be able to avail of them.

                From our experience the last four years, our coop banks, even if not yet consolidated, dictated the price of loans, particularly to salaried employees and banana growers.  In one instance, our banks forced the big players to reduce the rate of their salary loans from 49% to just 24%.  In another, the big banks were forced to lower the rate of banana growers’ loan to 13.5% on balance, from the high of 20% on original loan.  These are specific examples of what a well-managed, well-governed, people-owned bank can do to help the general public.  The lower transaction cost will benefit the public and help many get away from the mire of poverty.

With a strong coop banking system serving and strengthening the coop sector while at the same time benefitting the grassroots, the coop movement will be contributing much to the development of the countryside.  We will then have a movement that is relevant and plays a vital role in building this country. 

Thus, as FICCO members, we are now proud owners of a relatively big coop bank.  As owners, we will share from its income.  We can also avail of the many services it can provide.  This bank that we own will also be helping the general public.  As our bank is efficiently run, the people will also enjoy the lower prices of the bank’s services.  Realizing the benefit and beauty of cooperatives, many will be enticed to join coops.  As our coops grow, so will our bank.  Coops will then become important players in countryside development and nation-building. 

And come to think of it, as our coop and coop banks achieve these things, are we not also helping and uplifting, at least economically and socially, God’s people.  Are we not doing our share in building His Kingdom here on Earth?  As we prepare for the season of lent, let us reflect on the purpose of life.  Doing so will make it easier to appreciate this year’s theme – “Alleviating poverty, OUR responsibility!”  (ibdaba, 18 Feb 2012)     

A sunny Thursday morning served as the backdrop of another historic day for FICCO as it opened its 62^nd office in Makati City last February 23, 2012.  In an effort to bring competitive and quality services to the people, FICCO has already opened 60 branches and business centres all over Mindanao and a branch in Bohol.  The Makati office marks FICCO’s 1^st foray into Luzon. 

The short opening ceremonies were graced by Sen. Agapito “Butz” Aquino -- touted as the Philippine “Father of Cooperatives -- and Metro South Coop Bank Chairman, Fr. Serafin Peralta.   Fr. Joseph Avello, SSP blessed the new office.

This is an excellent opportunity for those who have relatives and friends in Metro Manila to encourage them to attend FICCO Makati’s Pre-Membership Seminars and join FICCO so they, too, may invest and avail of the excellent services FICCO offers.

The FICCO Makati Business Center is located at Tower B, 2^nd Floor, Unit 23, Palm Towers, St. Paul Road, San Antonio Village, Makati City. They may be contacted at (02) 822-5091.

FICCO is within your reach.  Join NOW!

As part of the celebration of the Cooperative Month, FICCO was awarded Most Outstanding Cooperative (Large Category) in the Region.  It also received the Bayanihan Award, the highest distinction awarded to coops for service and societal concerns.

Ms. Manilyn Araneta, the CEO’s Secretary, received both awards on behalf of FICCO during the Cooperative Month Culmination Program on October 28, 2011 at the VIP Hotel, Cagayan de Oro City.  The awards were given by Ms. Cristina H. Villamil, the OIC Regional Director of CDA-10. .

“It was a great honour to represent FICCO and receive the awards making it a once-in-my-lifetime opportunity. I am proud to be part of this cooperative,” Ms. Araneta said.

FICCO has gone through a lot in achieving its goals and vision. The recognition is  an inspiration to keep the focus  of working hard to serve more.  The awards also recognize the undying support of its members and the unwavering effort of its employees.

How a cooperative has been performing throughout the years is not just shown in how big their assets are or in how grand their structures would be. It is also seen in their achievements as recognized by different sectors. 

Now on its 61^st year of existence, helping and serving the Filipino people and continuing its mission to be strong and to be a stable community amidst all failures and doubts is probably the BIGGEST and HIGHEST achievement yet of this cooperative.

             Setting the trend in any area, field or subject entails a lot of things. More often than not, an institution must be influential in order to set or forge new trends. Influence comes in various forms and “sizes”. It can either be financial prowess prestige, reputation or character. Influence can also have a negative connotation which is largely because “influential” institutions and organizations use their influence the wrong way.

   It is not a secret that FICCO is indeed one of the most influential organizations in the country. It boasts a total asset size of P 5.4B as of September 2011. FICCO’s influence has been greatly felt by 149,237 members though 26 branches. Just recently, FICCO has opened several business centers in Tandag, Pagadian, Dipolog and other areas.

            FICCO’s presence in an area perfectly describes its influence. It’s competitive  pricing and wide array of products and services makes other people, and coops alike, share FICCO’s vision of bringing the services closer to them. Because of this, FICCO is able to ward off loan sharks and exploitative financial institutions from further manipulating people. In contrary, other institutions adjust their prices in order to be competitive. As a result, they improve their services to their members. FICCO’s presence forges new trends by normalizing and stabilizing the prices which eventually helps the members of cooperatives.

             A number of coops have continually sought advice from FICCO. Furthermore, FICCO has never been hesitant in sharing advices and suggestions to other coops in the hope of helping them improve their operations.

              FICCO has continually stressed Good Governance, Volunteerism and Discipline, all part of the FICCO Culture, as major driving factors that have helped FICCO grow. It is also the same values that FICCO wishes to impart to other cooperatives, These, in addition with the Integrated Coop Financial System (ICFS), are the new trends that FICCO has been trying to forge in order to create strong cooperatives. All these are not manifestations of FICCO’s influence. Rather, it is FICCO’s way of contributing to the cooperative movement in the country.

Our FICCO rides on many strengths:  almost 150,000 members, an army of dedicated volunteers, a corps of experienced and devoted personnel, committed leadership, a wide-menu of responsive products and services, 56 offices nationwide, 57-year successful track record, and many more.

FICCO’s humble beginning is best illustrated by its original 17 members when it started as Ateneo Credit Union (ACU) in 1954.  The initial contribution amounted to a measly P 26.30.  When ACCU (it became Ateneo Cooperative Credit Union in 1961) opened itself to the Cagayan de Oro community in 1970, its assets amounted to only P 184,000.00 and membership of less than 200.  We have gone a long way indeed as shown in the following graphs.

The graphs display in full the strength of FICCO in terms of membership support and responsiveness of its products and services.  Loyal FICCO members make FICCO their depository, preferring it over banks proliferating all around.  One can also deduce that our Coop couldn’t have achieved these remarkable milestones if it is not managed well, if its leadership failed to provide the right direction, and if it has no army of volunteers eagerly lending support.

By bringing its services closer to its members through branching out, FICCO easily expanded its reach even to areas where other financial institutions shied away.  More importantly, its cost-efficient operation allowed the grassroots to enjoy banking services at prices normally offered only to the bankable.  On top of this, the members also enjoyed returns on their investments at rates better than what the mainstream investors are getting from their stock investments.

Should FICCO now just sit on its laurels and relax, enjoying the fruits of its labors during the last 57 years?  Definitely not!  There are many things FICCO can do effectively, taking into account its strength. Its present leadership and top management could consider the following:

1.   On-line banking. Members will be better served if they can deposit, withdraw, and avail loans from any FICCO office, or even if they are working overseas.

2.     Money-transfer or remittances.  With our network of branches and business centers, as well as our relationship with coop banks, and taking advantage of technology, FICCO can facilitate the flow of money among its members and their relatives, within the country and abroad.  Thus, our many OFW members will be served.  The multiplier effect in terms of business generated, transactions completed and anxiety eliminated is unquantifiable.

3.  Distributorship.  Market networking is now commonplace.  And there are products and services that don’t require much in terms of warehousing and delivery.  FICCO can partner with manufacturers and serve as conduit in product distribution.  It can also tie-up with producers coops in distributing the latter’s products, e.g. rice producing coops packaging their produce in 5 or 10-kilo bags.

FICCO, with its huge membership base and network of offices, can easily facilitate the above services at competitive prices, to the advantage of its members.  From experience, FICCO’s trailblazing moves set the standards in rural finance, benefitting the community as a whole.  There is no reason not to bring its strengths to bear in other business lines.

FICCO can also leverage its sizable liquid asset pool to acquire utilities, e.g. electricity and water.  The intent of the National Electrification Administration to sell losing electric coops to the private sector is a big blow to the coop movement of this country.  But it is an opportunity that FICCO, along with like-minded coops, can explore.  Ditto for water utilities.The impending removal of the LWUA head could pave the way for our drive to cooperativize water districts.

Before we get carried away with all these grandiose possibilities, let us reiterate to ourselves the reasons we do the things we are good at and explore new things using our strengths.  FICCO is here to help alleviate poverty, redistribute wealth, and build up this country.

More power to FICCO on its 57^th anniversary!  And congratulations to all its supportive members, dedicated personnel and committed leaders for making FICCO the leading cooperative of the country today. (ibdaba, 30 June 2011) 

As part of the celebration for its 57^th Anniversary, the First Community Cooperative (FICCO) held a three-day Training Program for FICCO and Coop Bank employees at the Pearlmont Inn, Cagayan de Oro City from June 18-20, 2011.

     The event was facilitated by a team from the University of the Philippines Institute for Small Scale Industries in cooperation with Small Enterprises Research and Development Foundation (UP-ISSI/SERDEF). Eduardo de Castro and Virginio Jamon served as the mentors for the training.

The training is a joint program of Metro South Cooperative Bank (MSCB) Foundation and FICCO Foundation, Inc. which aims to capacitate the key management personnel of cooperative banks and middle line officers, as well as those of primary cooperatives, with essential management skills necessary to strengthen and improve the quality of service.

Giselle N. Escabusa, CPA, the Planning and Development Officer (PDO) of FICCO and a participant of the said training believes that the training is beneficial to the employees considering that this program is a step in recognizing their weaknesses and the major improvements of their staff and of the system.

      “Considering how complicated or complex the banking system is, this training will really help clarify certain areas that were unclear before,” Ms. Escabusa said.

At the same time, going through the various activities allowed each and everyone to discover certain strengths that were untapped,” she added.

     The training program tackled various topics under the Management and Marketing area such as Credit Management, Human Resource Management, and Action Planning. 

       The FICCO EDCOM Team spearheaded by its Chairman, Dir. Jesus G. Cornito, travelled approximately 63 miles to Jagna, Bohol for the 1^st Trainers Training in Bohol last June 11-12, 2011 at Elmar Bar and Restaurant. The participants of the training came from the different parts of Bohol such as Anda, Gindulman, Valencia and Jagna.

The two-day training started with the participants sitting in an actual Pre-Membership Seminar (PMS) followed by a lecture on the first two (2) topics of the PMS. After the lectures, the participants then were given ample time to select their topics and prepare their presentations for critiquing.

       Mr. Roel J. Cahulogan, FICCO Jagna Branch Manager, said that the training will hopefully kick-start FICCO’s impetus for poverty alleviation and nation-building.

       “Our presence here in Jagna and the rest of Bohol is an indication of our commitment to our members in bringing our services closer to them. Our vision is not only to become the biggest coop in the country, rather becoming the coop that is of the biggest help to our members,” Mr. Cahulogan expressed.

       “Our vision starts with you as future EDCOM volunteers. We will work hand-in-hand in reaching out to more people in Bohol,” he added.

         FICCO’s strength lies in its group of selfless and dedicated persons performing vital functions for the coop. The volunteerism of the future EDCOM volunteers from Bohol is FICCO’s advantage.

     City Warden SINSP Guy Jason Jacutin Reyes, MPA and the rest of the Malaybalay City Jail was awarded as best implementers of Alternative learning System (ALS) 2010 for the Regional level last January 20, 2011.

   SINSP Reyes launched 2nd batch of Alternative Learning System (ALS) Literacy and Livelihood Program last January 20, 2011. The said event was facilitated by Ms. Wendy O. Egoy, Outstanding ALS Mobile Teacher, and Dr. Cora. Asa, OIC-Assistant Schools Division Superintendent, Mr. Paul Fernando Sombilon, Branch Manager of FICCO, Dr. Cheryl Bayabay, General Territory Manager-PILMICO and City Councilor Hon. Otto Barroso.

   The Department of Education Alternative Learning System (DepEd-ALS) headed by Mr. Norman D. Melendez, DepEd MCCD conducted a screening test for elementary and high school inmate students enrolled in ALS Basic Literacy Program .The said examination will determine if a student can proceed to Alternative Learning System and Accreditation and Equivalency System Test on October 2, 2011.With the supervision of the Malaybalay City Jail IWD Officer JO1 Rodel Abratiguin, the examination went smoothly. The ALS A&E Test, formerly the Nonformal Education A&E Test, is one of the four components of the ALS A&E (then NFE A&E).

  It offers the successful test takers certification of learning achievements at two learning levels – Elementary and Secondary – that is comparable to the formal school system. The ALS A&E Tests in both levels are standardized paper and pencil-based tests and use multiple-choice test and composition writing. The test items are based on the learning competencies of the five learning strands of the ALS Curriculum.

  Malaybalay City Jail learners soon will have a livelihood program called “ALS FICCO SA PRISO “which the learners will be given initially twenty (20) piglets from the FICCO Foundation, Inc. through the lateral coordination with the City Jail Warden SINSP Reyes and Mobile Teacher Ms. Egoy. Dir. Jesus Cornito of FICCO visited the BJMP area for the said program “ALS FICCO SA PRISO.” He and the rest of FICCO is determined to launch the program this August 2011.

  Cheers!!! This is FICCO's Basketball Team Champion of the recently concluded Sport Fist 2011. From the four clustered teams the league was ended by the Central Cluster as Champion for 2011. The team is headed by BM Egay Micayabas and Coach by Johnson Tan III. Its team members in the picture (from left) J. Tan, R. Daroy, E. Jadman, A. Perez, E. Micayabas, R. Abascal, N. Jamito, G. Baguio,(seated from left) G. Poblete, J. Medalle, A. Waban, L. Mapa, W. Samuya. Kudos! from the employees and staff of the Central Cluster, Our presence may not be there during the tourney but we join you in the Celebration (So... asa ta kaon?). Congrats! Central Cluster!

Is FICCO doing right in leading the promotion of One Coop Bank, One Coop Insurance, One Coop Asset Management?

       A united Philippine coop movement has long been a cherished dream even by the previous generation of coop leaders. As early as 1990, there were already serious efforts to achieve that dream. But conflicting interests stymied that effort. For one, the different federations are not willing to let go of some of their functions, even if in exchange of economy of scale. For another, many coop leaders fear that mergers or consolidations will result in them being eased out of the picture, losing both their stage and their perks.

          With this convergence, FICCO has become the leader in promoting an ICFS. Many other coop banks and another coop insurance company is seeking FICCO’s investment support. Of course, there are also coops, coop banks and federations who felt threatened by the leadership role FICCO is taking. Aware of our culture, the leaders of these coops are afraid that if FICCO succeeds in establishing a vibrant ICFS, it will pave the way for a united coop movement. And this will certainly threaten their stage, even more so the perks they now really enjoy.

By: Cecil Laguna, Luis Yap, Jake Cornito and Isagani Daba

Should FICCO volunteers receive huge honorarium?

Service. Volunteerism 

Big words. Big words that are the linchpin of the FICCO culture; the very words that are most crucial to our beloved coop’s continued existence.

Imagine for a moment this scenario – a repugnant and “makapang-limbawot sa balahibo” what-if scenario: What if FICCO volunteers (whose interface with FICCO operation is limited) demand entitlements in exchange for their services? Wouldn’t FICCO personnel who work 44 hours per week from Monday to Saturday, not counting the many more unpaid extra hours, rightfully feel and demand that they should be entitled to more benefits also?

This would trigger unwelcome results. Primarily, FICCO returns to members will decline. This will, in turn, trigger investment choices on the part of the members. Some may even distrust our coop and bring their money elsewhere. Thus, FICCO’s competitive advantage is lost. FICCO will be reduced to just another ordinary grassroots organization.

An ordinary, commonplace, grassroots organization with officers and staff eagerly milking it.

There seems to be a recurring wave of thought that volunteers be given bigger honorarium. This came to the fore when Atty. P. Sarmen voiced out his long-held belief that the members of the FICCO Board should receive at least P10,000.00 honorarium.

By: Isagani Daba, Ed Sambaan and Art Aldamia

     FIRST COMMUNITY COOPERATIVE (FICCO) deals not only with economic benefits to the society but will now be offering scholarships for fresh high school graduates for the incoming first semester school year 2009-2010. This was approved by the Board of Directors during its regular board meeting held last April 18, 2009 per BOD resolution no. 130. Applicants will need to possess and submit the following requirements:

• Applicant shall belong to the Top 10 of the graduating class duly certified by the principal;
•  Must have a weighted average of not less than 90% but with no grade below 85%;
•  Parent’s combined annual income shall not be more than P120,000, provided, subject to background investigation to be done by any FICCO staff upon request;
• Applicant must be of good moral character; and
• Applicant’s parent/guardian must be a member of good standing with FICCO.

    Out of the total applicants, FICCO will be selecting two (2) applicants whi will qualify from the screening that they will be conducting during the month of May (TBA). Selected scholars will be allowed to pursue the priority courses: Accountancy (BSA) and Information Technology (BSIT). One-slot is available for each course. Interested applicants may submit their requirements to: FICCO Main office, HR Department, c/o Ms. Hazel Abrogar.

     Reaching the summit of perfect existence in collaborative financial business, requires efficiency in showing care and forethought of the years to come.

Provident thrift

     FICCO had gone through it and proven such for 54 long glorious years. Its secret--diligence and consistency in being thrift. In our own native language, we call it "kuripot" or "inot". It sounds nice to some, to some maybe jocular, but this is how the cooperative had survived and had helped many families and businesses. Prudent, or the act of showing care and thought for the future is the right term why FICCO had existed for fifty-four years.

3 billion mark

     While the world suffers from extreme financial meltdown, FICCO's careful prudential planning architectures a state of liberation from this recession. FICCO had escaped this second great global recession which traced back in 1929 the hardest hit, when the world was in distress from the devastating effects of economic downturn. As of end of 2008's financial calendar to the beginning of 2009, the coop hit the P3 billion dot. Yes a mere three-billion peso mark in assets with a benefited-members of over a hundred thousand across the southern island of the Philippines. It had uplifted many businesses through its *0.75% interest per month scheme or less than 1%--the lowest interest in all of the open-type coops in the Philippines.

Saving and Tender Care

     Through its education committee, members are taught on the value of saving. Its staff and officers working inside its corresponding branch and business centers play the lead role of a providential prudent member. They always suggest loan for a productive use. They are keen in qualifying a member who religiously saves money, because these kind of people will help protect the existence of the cooperative. A prudent example, produces prudent members and the cycle continues.

Sympathetic stewardship

     Today, the board recently extended compassionate concern to its members by removing the withholding tax on **savings and time deposits. More interest from deposits can now be gained. It is the right time for to open one now.

You can be rich

     Director Isagani B. Daba, vice-chair of FICCO for 2008-09 once said that the meaning of the word saving is money received minus deposit equals expenses. He means that save first before you spend. Example you are an employee receiving regular salary, the first step to do is to cut a portion of your salary for deposit and the remaining portion is for expenses. By religiously doing this, you won't notice your money had gone far beyond what you expect. Say you are a minimum wage earner, you save P1,000.00 for a 15-day salary, in the month, you have P2,000.00 and in a year you have P24,000.00. By joining FICCO, you learn its culture, the habit of saving money.

United in one goal

     To help is the basic goal of FICCO. By increasing its assets, more Filipinos benefit from its prudential education curriculum--to save for productivity. To assist members financially for productivity.

 *based on the 1 year loan category of 9% interest per annum

**based on 54th annual general assembly report

"Many are called. few are chosen"

                Twelve years ago, this corner came out with an article of the same title. That article shared some insights gained from a Holy Week retreat, a retreat that centered on the Good Samaritan's deed's vis-a-vis a victim of robbers, in contrast to the reactions and actions of the Priest and the Levite. Recall that Jesus told the parable of the Good Samaritan in response to the question,  "Who is my neighbour?" by a teacher of the law.

The article reads:  “Both the priest and the Levite were holy men, but compassion was absent in their hearts.  In contrast, the Samaritan, who is supposed to be an outcast of society at that time, responded to the need of the victim and even went beyond just providing first aid.

The story actually did not end when Jesus was able to force the teacher to discard his own biases against outcasts.  He challenged him to put God’s commandment into practice.  Actually, Jesus, on the night He was betrayed, refined further the commandment by changing the measure by which we love one another.   From using as basis the way we love ourselves, He teaches us to love others the way He loves us.  And what greater love is there…

Reflecting on all these, my mind shifted to the role volunteers play in a coop.   I have always maintained that volunteers give coops the competitive advantage.  Can you imagine how coops will price its services if their officers’ honorarium is high? 

                And my mind went to the next question:  How much should coops remunerate their volunteers?   What is enough?  If we go by the original concept of coop volunteers, they get no pay.  They are just reimbursed of actual expenses incurred in pursuing coop business.   Coops in Western countries, and in South Korea still practice this.

This corner always stands for an honorarium that approximates a volunteer’s actual cost in pursuing coop business.  Anything beyond is no longer volunteerism.   The argument that our coop is already big and can afford to pay bigger honoraria is over-stretching the meaning of volunteerism.

                The other arguments why we should not pay extra to our volunteers are: a) volunteers volunteered to serve;  they were never hired;  b)  the extra honorarium is an attraction  to those who are not really out to serve, sometimes easing out  those who really have service in their hearts;   c)   dissensions happen  prompted  by desires to get the or cling to positions because of  high honorarium;  and last but not least, d)  to serve is actually an opportunity to serve God in others.

Let me just dwell on the last argument.   All of us are called to serve, to extend ourselves to others, and to be good Samaritans.   Serving the coop therefore, without pricing our services beyond what is necessary is an opportunity.  And very few are actually given that chance.   The priest and the Levite were offered the chance to serve God beyond rituals but turned it down.  The good Samaritan, despite being an outcast, grabbed the chance and earned God’s favor.”

                With a new set of officers assuming the leadership mantle in our coops, it is good to revisit the importance of volunteerism to coops.  It was already pointed out that volunteerism is the competitive advantage of coops. The absence of real volunteers leads coops to fall prey to opportunists.  Decay follows.

In a recent gathering of coop leaders in Manila, one well-meaning national leader stated, matter-of-factly, that it is important to give good honorarium to coop leaders.  “If you give peanuts,” he said, “you will attract monkeys.”  To this, one of the participants retorted:  “If you give cheesecakes, you will attract mercenaries.”  The laughter that followed the witty exchange ushered in a deeper realization on the part of everyone in that meeting of the importance of real volunteers to coop stability and growth.

                Excessive campaign spending, even vote buying, are now present in many coop elections.  Some are prompted by the prestige that comes with leadership. Others hope to use the coop as springboard to capture political positions.  Still others just want to have the position, including the opportunity to travel, even if they offer nothing to justify his/her pursuit of it.  Worse are those who just want the honorarium.  Of course, all of them readily proclaim that they want to serve.

                The aforesaid motivations of aspiring leaders surely clash with coop values that call for selflessness, service, good governance, volunteerism, and sacrifice.  The sad thing that could happen is when the real volunteers, usually laid back people, recoil from the aggressiveness of the opportunistic aspirants and withdraw or just give way.  The coop movement ends up the loser.

                The same thing is happening in our country’s political governance, at all levels.  Well meaning people with the heart to serve are reluctant to run for positions.  Even if they have money, they are not willing to spend to buy votes.  Their principles limit their actions.  But the buayas will always be at the forefront in vote buying and cheating knowing that they can easily recoup their expenses once elected.

                Let us all pray that our coops will not fall into the hands of mercenaries or opportunists.  Let us watch the actions/actuations of those who are now in leadership positions, even as we pray that they will realize that to serve is an opportunity.   Let us hope that they will recognize that they are now important building blocks in the building of God’s Kingdom here on Earth.

To coop volunteers, we see how those less in life struggle amidst the exploitations that abound.  We can be just like the Priest or the Levite concerned only of our own needs and ignore them.  Or we can be Good Samaritans by making sure our coops are refuge of those in need at affordable cost by becoming real volunteers.

This is something we can look back to with pride as we relate our contributions to our grandchildren.    Let that realization be our just reward for the services rendered to the coop. 

This article started with a biblical quote as sub-title addressed to coop volunteers.  We are in the season of lent, so let us end with another, this time addressing both the coops and the volunteers.  “Those who can be trusted with small things can be trusted with bigger things.”

Here’s hoping that we will all have a deeper appreciation of the meaning of the passion, death and resurrection of Christ this Lenten season.  Only through that that we can have a real HAPPY EASTER.  (ibdaba 3/28/2009)

From economic and financial points of view, the year 2008 was the worst in the last 60 years.  We saw last year the skyrocketing prices of petroleum products (with gasoline costing as high as P 60 per liter), a precipitous drop in the value of equities and other investment instruments (some $ 14 trillion in equity value in the US alone were wiped out), the closures of banks and investment houses worldwide, and, in Philippines, the unprecedented increase in the price of rice to as high as P 54 per kilo.

          This parade of bad news was punctuated, aggravated and mostly eclipsed in prominence by the abuses of our leaders.  If we may recall, we saw last year how the GMA administration tried to cover its tracks on the anomalously overpriced ZTE deal.  We also saw how Jocjoc Bolante lied through his teeth on the P 728 million fertilizer scam, and the Euro Generals shifting explanation of the P 6.9 million pocket money for foreign junket.  And very recently, we saw the closures of 13 rural banks of the Legacy Group, dragging the name of Speaker of the House of Representatives Prospero Nograles.  And for the nth time, the name of first gentleman(?) Mike Arroyo is again mentioned in major road projects corruption no less than by the World Bank.

            On the local front, the promise of huge investment in shipbuilding, and the job creation and economic activities it would have triggered, was put in doubt when the proponent, Hanjin, decided to shelved it (hopefully temporarily) allegedly due to huge “tongpats.”

         It is amidst this background that we need to reflect on what our coop has accomplished in 2008.  Let us start with the good news:

 1.   Total assets continued to grow.   

While the rate of asset growth decelerated from 25% in 2007 to just 21.7% in 2008, this is still better than 2006’s 18.7% and 2005’s 17.7%.  We also need to highlight that the asset growth is internally generated.  FICCO has no real external liabilities.  The loans reflected in our balance sheet refer to loan against deposits that we obtained from MOCB, a bank that FICCO owns.

2.   Total deposits are on the upswing, while common stock (share capital) is growing steady. 

Deposits include savings, time and RS/IS.  Our competitive interest rates attracted excess funds of members and this helped our Coop’s strategic moves, e.g. consolidating coop banks, investing in mutual funds, coop and deposit insurance.  The steady growth in share capital is the ballast that keeps FICCO very stable.

3.   Loan releases also continued growing and topped P 3 billion in 2008. 

FICCO’s contribution to the economy of Mindanao is huge.  If we take the economist’s view that for every peso loaned out, as much as P 3 to 5  in economic activities are generated, FICCO’s contribution to the GDP could reach as much as P 10 to 15 billion.

4.   Dividend and patronage refunds are still robust at 10.5% and 9%, respectively, despite the lower profitability rate of 44% versus last year’s 45%.

The real measure of efficiency of a financial institution is the margin that it is able to make, i.e., the difference between the effective rate of its loans and the interest it pays for its deposits.  FICCO’s effective rate on loans is below 15%, and yet it is still able to pay 10.5% dividend.

 Of course, it is not all good news.  This includes the following:

a.   Membership grew 12.2%, from 103,584 to 116,171, but the rate of growth is lower than 2007’s 16%.  (Please see graphs 4 and 4a.)  This is due mostly to the economic slowdown that started to bite in the second half of 2008.

b.   Past due loans posted a 17.1% growth, forcing FICCO to book provision for loan losses of P 41.0 million, some 30% over the P 31.6 million budgeted for the year.

Objectively, the minuses are not that serious as to overshadow the pluses.

Be those as they may, the problems that we all face are serious.  The on-going recession will translate into business slow-downs, if not closures.  This means lay-offs, more unemployment, less purchasing power, and further slow-down in economic activities.  It could also mean less taxes collected, less social services, less infrastructure projects and less many more.  If ever, the only bright spot we can glimpse is that the “buayas” in government will earn less from the “tongpats” they are quick to collect.

 Opportunities, the other side of crisis

            But wait!  If all of us keep the same gloomy outlook as the economic world, then we too will be caught in the downward pull of the meltdown.  The truth is, even in our own small ways, we can buck the trend. 

Let us start with the fact that every downturn is always followed by recovery and growth.  We can then proceed to do the following:

• The many entrepreneurs among us dealing in basic necessities, your activities will be less affected by the recession.  We suggest that, with your entrepreneurial capability, you take a look at other lines of business that are also dealing in basic items.  For example, if you are dealing say in vegetables, maybe you can take a look at including fruits.  Or if you own a carenderia, you try to explore which items you are now buying from your suppliers (e.g., meat, poultry) that you will produce yourself.

By engaging in new lines of business, you will be employing people and will have in some ways reduced the number of unemployed.

• Those without entrepreneurial skills, but with steady income, borrow and repair that house you own or put-up a new one.  If your place is not that far from schools or business establishments, construct pads.  This way, you are employing carpenters, masons, plumbers and electricians.  You are also providing business to hardwares and suppliers of sand, gravel and hollow-blocks.  And the good thing is that prices of construction materials go down during recession.  The multiplier effect of your construction and repair is far reaching and is a boon to the economy.

• The “green thumb” among us could plant some more:  vegetables, fruit trees, root crops and spices.  At the very least, you will save on your grocery budget.  Those residing in urban areas with limited land area, try using pots in growing vegetables.

The bottom line to the above suggestions is to find opportunities in this time of crisis.  It is often repeated that the Chinese character of the word crisis could also be read as opportunities.  So look around and find opportunities.  They abound during this time of crisis.

Lastly, we are asking you to use the loan services of FICCO to take advantage of those opportunities.  But remember, borrow wisely.  Meaning, use that loan proceeds in investing into business enterprises that will augment your income, even as you employ people, pay taxes, buy from suppliers, and help improve the economy.  (ibdaba, 9 February 2009)

     Maayong balita sa alang sa mga sakop sa FICCO nga kinahanglan mopadala og kwarta sa ilang mga anak, kaubanan o kasosyo sa negosyo nga anaa sa laing lugar, mahimo na ninyong ipadala ang kwarta pinaagi sa bisan asanag FICCO branch.

     Ginamit sa pasilidad sa GLOBE GCASH, sayon na karon ang pagpadala og kwarta kang bisan kinsa sulod sa atong nasod. Ang naka maayo pa gayod niini kay barato kini nga serbisyo kon itandi sa mga balayronong nga ipatong sa karong mga naandang cash remittance center.