SUCCESS STORY & HISTORY OF THE STA. CRUZ SAVINGS AND DEVELOPMENT COOPERATIVE
In 1983, confronted by low production, and in order to respond to the need of providing financial assistance and other production needs of farmers, the Federation of Rural Improvement Club of the Sta. Cruz, Ilocos Sur organized the Sta. Cruz Credit Cooperative. An orientation and Pre-membership seminars were held with the assistance of Tagudin Credit Cooperative and the Department of Agriculture. The Sta. Cruz Credit cooperative was duly registered with the BACOD on December 18, 1984 with Registration No. RI-F-109 and was confirmed by the Cooperative Development Authority on February 14, 1991, Confirmation No. 362.
The Sta. Cruz Multi Purpose Cooperative (Formerly Sta. Cruz Multi-Purpose Cooperative) covers the 49 barangays of Sta. Cruz, Ilocos Sur with a total area of 144sq. kilometers.
The original twenty five (25) members pool their resources together starting a capital of PhP5, 000.00. With these limited resources, it started its operation with only one (1) staff. It was a slow, difficult climb upward.
The first big break came when the coop sponsored a MUTYA NG KOOPERATIBA in December 1987 as a capital build-up scheme where half a million pesos (PhP500, 000.00) was raised.
This was followed by a sacrificial merienda in April 1989 where the coop achieved an increase of three hundred thousand pesos (PhP300, 000.00) as an additional fixed deposit. Again a raffle draw followed in July 1989 with a net of four hundred thousand pesos (PhP400, 000.00) as share capital. Continuous
capital build up has been programmed to finance the services of the coop. With these activities, it greatly enhanced and expanded the services to its members.Credit is the main line business of the Cooperative. Deposits in the form of saving and time deposits are also accepted.
To serve better the members, solicitation of outside support was made. Tagudin Credit Cooperative entrusted some amount in the form of time deposit to expand the credit services. Philippine Business for Social Progress (PBSP) granted the coop a concessional loan of PhP200, 000.00 to implement livelihood projects for the benefits of poverty groups. To be able to implement, underground water development project to benefits sub-marginal farmers, the coop seek financial assistance from the Dutch government and CEBEMO was able to get grant of P389, 799.00. Likewise, to cater to the needs of small fishermen, the coop asked the assistance from the Presidential Management Staff who gave a grant of more than PhP400, 000.00
Eighty percent (80%) of the population of Sta. Cruz is engaged in farming. For the benefit of its farmer-cooperators, especially the tobacco growers, the cooperative entered into a contract with the Land Bank of the Philippines (LBP) and the National Tobacco Administration (NTA). The Financial assistance came from LBP and the Supervision of the beneficiaries is under the care of the NTA technicians.
To benefit members who are engaged in cottage industries, traders, retailers, and small manufacturers and processing enterprises and members who want to establish projects which will help them augment their income, the coop availed a loan from the Department of Trade and Industries.
Through the years, the resources and services increased and this motivated the Cooperative to go into Multi-purpose Cooperative, the amendment of articles of cooperation and by-laws of the STA. CRUZ MULTI-PURPOSE COOPERATIVE laws duly registered with the Cooperative Development Authority on July 4, 1994.
A humble evidence of its progress, a land and building was acquired on April 1990 which now houses its office and other services rendered. A 3,000 sq. meters land was purchased on June 1991 wherein a Feed mill was built through the Ilocos Sur Provincial Government Assistance. Also a solar drying pavement was constructed to serve as post harvest facility. These were the outcome of hard work and dedication of all people involved in the cooperative.
The feed mill manufactures animal feeds –for hogs, broiler, cattle and tilapia known as SCMP COOP FEEDS. As a back-up project of the feed mill, SCMPC has launched a project called the Baboyan sa Coop. The Coop provides each beneficiary a minimum of 5 hogs, feeds, veterinary medicines, technical supervision and assistance. Sixty percent of the project income will be given to the beneficiaries and 40% will be the share of the coop.
Last February 1996, the SCMPC was able to get support from the Australian Agency for International Development-Philippine Australian Community Assistance Program (PACAP) in the amount of P750, 000.00 for the implementation of the Palay Trading and Support Facility Project. After five years of operation, the fund was transferred to the savings and credit to be used in its agricultural loan window.
After 2 years, another support was received from PACAP, for the implementation of the Balikatan sa Kabuhayan Project in the amount of PhP600, 000.00 for livestock project-hog, cattle and broiler raising.
It was September 1999, when the Feed mill was stopped due to a very tight competition with commercial feeds and low support of the members, however, member’s demand for feeds was responded by diverting commercial feeds to continue their project.
Besides those mentioned earlier, the following services and programs were operated and offered but after several years they were closed:
- Medical Aid Program (MEDICAID) – this is similar to MEDICARE of the government. Enrollment in this program is voluntary on the members. All members are required to pay monthly premium of Php15.00 and when they are hospitalized/confined due to any kind of illness, the member will benefit an amount of P100 per day for the first 10 days or a maximum of PhP1, 000.00, the benefit can only be availed once a year, for outpatient, benefit to be given will be PhP300.00- Must present doctors certificate and Official Receipt of the medicines bought. However due to low patronage of members the coop stopped this program on January 2003.
- Birthday Regalo. This is one way of capital build-up. Each member of the program will contribute to a common fund of P20/member. Every member of the program is entitled to a gift when his/her birthday comes. For regular member, 50% will go the share capital and 50% will go the Savings Deposit. For YTM 100% will go to Savings Deposit. This program was suspended in its implementation on April 2001.
- Marketing. The marketing division is engaged in the buy and sell of agricultural inputs/products, grocery items, feeds, and other products. Due to some operational problems it was closed on December 2002.
- Tractor. The cooperative acquired a tractor in 1991 to better serve its farmer members. Tractor service is available at a lower rate than those of other individual offering the same services. However, the tractor was sold on October 2001.
It was a big shift for the cooperative, since January 2003, the focus of operation is savings and credit. The services and programs currently offered are the following:
- Savings. The coop accepts deposits in the form of savings- regular and special- and time deposits. To help members increase their purchasing power, the cooperative become more aggressive in its savings mobilization.
Special savings products were launched on August 28, 2003. These products allow each member to choose the best option that suits his/her budget.
a. Super Teens Savers (STS) - savings plan for youth to provide for future education needs.
b. Mother’s Savings Plan(MSP)- Savings plan designed especially for mother (biological mother, adoptive mother or guardian)
c. OFW’s Cash Builder (OFW) - a savings and investment program specially designed for Overseas Filipino Workers.
d. Golden Savers Club (GSC) - designed for retirees, senior citizens & pensioners.
e. Money Maker Prime Savings (MMPS) – it’s simple reassuring and within reach of everyone’s budget.
2. Credit. The credit services answer the financial needs of members. It offers productive, provident and special loans. Since July 2001, the capacity-based lending (CBL) is gradually implemented. It was a great and difficult shift
for the officers, staff and members. Lending policies were amended, forms were revised and the process and procedures were improved. The capacity of the member to pay is already the number one basis in granting
loans and no longer capital leverage. The member is being rated using the 5C’s of credit- Character, Capacity, Collateral, Capital and Condition. Despite the changes and challenges brought by the implementation of CBL,
there has been a considerable increase in the loan of portfolio and decrease in the delinquency rate from a Portfolio at Risk (PAR) of 40% to 8.19%. Most importantly, DOSRI (Directors, Officers, Staff and Related Interest)
accounts are supervised and monitored.
Car/motorcycle, farm equipment, fishing equipment, computer, cell phone and appliance financing are being offered. Followed by Jewelry Pledge Loan, Traveler’s Loan Window. The latest loan product that was launched is the Overseas Filipino Workers (OFW) Fast and Easy Loan.
3. Youth Tipid Movement (YTM). This program designed to encourage minors to practice the virtue of frugality and save for their own future. YTM members are also given the opportunity to participate in the Mortuary Aid Program (MAP), if the parent so desires.
4. Mortuary Aid Program (MAP). This is envisioned to assist financially the family of a departed member with each member contributing an amount to a common fund. Deduction is automatically made from the member’s mortuary deposit.
The bereaved family of a MAP is entitled with the following benefit/s:
Length of membership Benefit
a. New member – 2 years PhP 20,000.00
b. Above 2 years- 5 years 25,000.00
c. Above 5 years to 7 years 30,000.00
d. Above 7 years to 10 years 35,000.00
e. Above 10 years to 15 years 40,000.00
f. Above 15 years 45,000.00
B. Additional Benefits
a. P 10,000.00 for the active members enrolled at Kabalikat Sa Damayan Program (KDP).
b. Additional for the following classes of members:
i. Diamond PhP10,000.00
ii. Gold 8,000.00
iii. Silver 6,000.00
iv. Emerald 4,000.00
v. Bronze and no classification yet 2,000.00
However, to be the entitled with this benefit the MAP member savings deposit has an average daily balance (ADB) of at least PhP1, 000.00 for a period of one year before the time of death.
c. Additional incentive of PhP10,000.00 for MAP members who are Special Savings Subscribers.
d. An additional of PhP90, 000.00 for the family in case of accidental death.
5. Scholarship Program. This was established to answer the demand of the young cooperators during a Youth Congress. This program is beneficial to those who have less in life but deserving students to pursue high school and
college education. The youth must be a member of the YTM or a child of a regular member.
Capital build up and savings mobilization is a continuous activity of the cooperative. The growth of the coop was nothing short of phenomenal. For many years of operation, SCMPC is constantly finding a fit between diverse needs of members and the appropriate strategy given the circumstances the cooperative find itself in.
Membership classification started on June 2003. Members are classified as diamond, gold, silver, emerald and bronze. This is done annually.
SCMPC has established its accounting systems and procedures. An integrated accounting system– computerized system of savings, loan and the general ledger- was installed to improved recording system. There is systematic recording, whereby daily reconciliation/balancing of records in the hard copy, individual ledgers and the general ledger (GL) is being done. Daily checking is also done to minimize if not to eradicate errors in recording.
Re-organization was done establishing 4 units/department:
- Credit and collection;
- Accounting; and
It is the aim of SCMPC to provide continuous trainings/seminars for the members, officers, and staff. Pre-membership Education Seminars (PMES) is done once a month. However, membership briefing is twice a week. The coop care for its members’ credit records. This is the main reason for the weekly conduct of Wise Borrower Seminar (WBS). Entrepreneurship seminars are also conducted to help augment the livelihood of members.
The openness to the challenges of change of all people involve in the existence of the Sta. Cruz Multi-Purpose Cooperative and the implementation of the financial tools such as capacity based lending, daily balancing, internal control and other activities facilitate the coop’s growth and stability. Likewise, the human resources are not left behind, the HR manual was revised and improved and the Code of Ethics is now placed.
Last May 22, 2006 the certification of the proposed amendments to the Articles of Cooperative and By-laws adopted on its General Assembly Meeting held on March 11,2006 at the Suyo Barangay Plaza, Suyo, Sta. Cruz, Ilocos Sur were submitted to the Cooperative Development Authority (CDA) for registration pursuant to the provision of the Republic Act Sixty Nine Thirty Eight (RA6983).
The amendments being not contrary to the provision of RA 6938 and the rules and regulations issued by the CDA are hereby registered. The amended name of the cooperative is STA. CRUZ SAVINGS AND DEVELOPMENT COOPERATIVE. The area of operation was also amended.
June 2006, SACDECO HONGKONG CHAPTER was organized through the efforts and sacrifices of the members of the Board of Directors headed by Eng. Jose R. Ping-ay and the untiring General Manager, Eva Garnace-Borja and OFWs in Hongkong. Initial members were only six, now they are more than 100 members.
On the month of September 2006 two (2) branches were launched, SACDECO Santiago Branch, 2nd Floor Belarde Bldg., Poblacion Norte, Santiago, Ilocos Sur and SACDECO Bacnotan Branch, Leobeth Bldg.,Poblacion, Bacnotan, La Union on September 8,2006 and September 18, 2006 respectively. On March 16, 2007, the City of San Fernando Branch at La Union was opened. It is located at Diversion Road, Sitio 5, Brgy. Biday, San Fernando City, La Union.
Because of the increasing number of members and so with their demands, this cooperative filed amendments for the expansion of area of operation on June 8, 2007. That this cooperative shall operate within Region I composed of four (4) provinces- Ilocos Norte, Ilocos Sur, La Union and Pangasinan.
October 27, 2006, SACDECO entered into partnership with the Philippines Health Insurance Corporation (Phil Health) for the coverage of its members subject to the terms and conditions of the Phil Health Organized Group interface Scheme of the National Health Insurance Program (NHIP).
The cooperative also had a partnership with Pag-IBIG on December 15, 2006 called as the “Pag-IBIG - SACDECO partnership Bayad Center/Acceptance of membership”.
Aside from the above mentioned capital build-up and savings mobilization scheme, SACDECO launched also “Free School Lunch” on October 2007 as participation for the coop month celebration. On this event, youth from different schools within the municipality of Sta. Cruz including teachers participated actively and we generated savings deposits of more than a hundred thousand.
Our Organizational Structure has undertaken various evaluation and restructuring. We find our present organizational structure effective in terms of delivery of our products and services. From multi-purpose we shifted to single purpose, which is the savings and credit to focus our energies to one with the end view of attaining excellence. This shift makes our operation simple but made us more financially capable and sturdy. We instead encourage our members to engage in our previous business lines while we provide the required capital and technical assistance. Moreover, our present structure has hastened internal communication and the process flows of documents have become more facilitated. With the entry of computer software and innovations, our cooperative has embarked and invested on these trends.
Now, we can generate our financial statements at the end of each coop banking day.
Presently, we try to innovate further and regularly look at our structure due to the expanding membership products and services that we have now and intended to do.
To mention some laws or regulations to have contributed to the success of this cooperative are labor laws, coop taxation, Coop Code Amendments, Manual of Rules & Regulations (MORR).
With some forms of monetary incentives as to members are cash dividends, patronage refund (on delinquent member-borrowers); interest on deposits; interest rebates for early payments of loans; collection fee (deducted from loan but return if he/she comes to office for payment on or before due date). As to Officers, they also received the incentives mentioned above as to members plus honorarium/per diem during their meetings; cash gift/bonus. As to staff, they received incentives/benefits same as to members or officers plus 13th month pay/14th month pay; medical allowances, accrued leaves; monthly salary & COLA; rice allowances, productivity/loyalty pay; separation/retirement benefits. For non monetary incentives to members are (give always) i.e. tokens, bags, umbrellas, calendars; to officers, they are provided with insurance, clothing/uniform allowances & communication allowances and for the staff they are also provided with insurance, SSS, Phil health, Pag-ibig, clothing/uniform allowance & communication allowance.
The SACDECO has its monthly plan, semi-annual; annual plan and 5 years institutional plan as the guide or basis of evaluating its accomplishment. It has a dream that this Coop shall be one among the cooperatives using ATM machine.
COOP NATCCO Party list, have also contributed to the development of our office building and extended assistance for our coop’s lending operation. SACDECO also seek financial assistance from Banking institution like Land bank of the Philippines, Metro South Cooperative Bank, National Confederation of Cooperatives, Ilocos Sur Cooperative Bank, Nueva Segovia Consortium of Cooperatives and other Cooperatives or investors though lending and deposits. Likewise, financial assistance for the micro-entrepreneurs, farmers and fisher folks was received from the Hon. Cong. Eric Singson.
We are also to be the first cooperative in the 2nd district of Ilocos Sur to launch Gender Sensitivity Program, empowering women into leadership or Gender awareness incorporated with our HR manual. Likewise the first cooperative in the North to have its own ATM catering the needs of our members even late at night which was launch August 8, 2008 and at the same date, a new branch was opened in Bangar La Union. It was also on the same year when another branch was launch to cater the needs of our people in the northern part of Ilocos Sur, the SACDECO- Santa Branch in October 8, 2008.
The swelling growth of SACDECO is now beyond restraint made more possible through its affiliations and partnership with National Confederation of Cooperatives (NATCCO), Metro South Cooperative Bank (MSCB), Nueva Segovia Consortium of Cooperatives (NSCC), Northern Luzon Federation of Cooperatives (NORLU CEDEC), Ilocos Sur Cooperative Bank (ISCB) Land Bank of the Philippines (LBP), Asian Women in Cooperative Development Forum (AWCF), and Small Business Fund Corporation (SBC). And as SACDECO believe in the necessity of investment, it is the highest primary coop investor at ISCB, top investor at (NSCC) and one of the top investors at MSCB.
To boast of, SACDECO is attracting many primary cooperative visitors mainly to know the prime reasons for its success. And the best practice that SACDECO could relate is its utmost care to its members, that members’ welfare is the top priority. SACDECO has gained the trust and confidence of its members. What they invest, they receive what are due to them especially with their high dividends and patronage refunds.
The staff and officers alike are equally taken cared of. They receive very reasonable remuneration and honoraria respectively. Young memberships are valued through the Youth Tipid Movement (YTM) and the Aflatoun Program.
SACDECO has started to become a “one-stop-shop” cooperative with the following allied services: ATM, acceptance of SSS and PAGIBIG premium payment, Western Union Services which include availability of NSO documents, and KASAPI (partnership with Phil Health).
It is very compliant on all rules and regulations formulated by the regulatory agency of government. The code of conduct is strictly implemented. In fact, a quarterly Moral Regeneration Program session is being conducted and weekly (every Monday) devotion is being done in all offices to strengthen the staffs’ faith in God.
All officers were trained on Credit Union Directors’ Competency Course (CUDCC) and Cooperative Governance, and key management officers have undergone Credit Union CEOs’ Competence Course (CUCCC). In addition, the officers are being sent to other different seminars which are helpful in the discharge of their duties and responsibilities.
SACDECO continuously grow and the area of operation covers not only Region I through the amended article and by laws covering the entire Luzon where 2 more Branches in Pangasinan were launched, The SACDECO-ASINGAN and SACDECO- VillasisBranch in October 28, 2009. The fast branching was evidence of success of our cooperative. Our Board of Directors were also elected and selected as Directors in different Cooperatives and Federations.
In 2010, SACDECO received a very prestigious award coming from Land bank, where: SACDECO awarded as the 3rd Placer in “Gawad sa Pinakatanging Kooperatiba” (non-agri category) and also awarded as the best in Savings mobilization and Best in Capital Build Up, more awards and citations were also given to SACDECO throughout the year.
Our Chairperson, Engr. Jose R. Ping-Ay who were the 1st nominee of the Coop-Natco Party List continue his congressional service through the joint effort of our members, officers, affiliates and other cooperatives supporting the “Partido ng Kooperatiba”.
January 10, 2011 another blessing in SACDECO’s life. A new branch was born in Bayambang Pangasinan and on the same year Sacdeco Villasis- Satellite office was also created in Cuyapo Nueva Ecija, this seems to be unbelievable but its true! The same year, we were awarded with various awards and citations again as evidence of our Successful Operation. We were now 2nd Placer in the GAWAD PITAK and awarded once again with BEST SAVINGS MOBILIZATION and BEST CAPITAL BUILD UP, we were also awarded as 3rd Placer in the 1st CDA GAWAD PARANGAL.
SACDECO continuously rendered services not only on Depository and Lending but also its Social Responsibility. We become partners with different organizations and LGU’s to meet the needs of our people in the countryside.
We care for our environment: We have the Save the Earth Program, and to make this program better, we practice reducing the usage of plastics and we practice the proper waste disposal by practicing the 3R program. We also do coastal, cleaning, Community Cleaning, Tree Planting in Coastal, Riverside, and Mountainous areas.
We care for the health of our People : We also have our “Health and Wellness Program” we became partners with Philip Morris Tobacco Corporation, the Rural Health Unit, LGU’s and Volunteer Doctors and Nurses in our Medical Missions which were conducted several times in all offices. “Operation-TULI and PAP SMEAR were also part of our medical Missions.
“Sanitation and Water System Project” to maintain the cleanliness and to give a proper sanitation, we distributed toilet bowls and drums in the coastal areas in partnership with the Landbank Countryside Development Foundation, Inc, the Local Government Unit, Barangay officials and other concern Citizens. Likewise, we also have the water system project which serve as irrigation project and water supply to household near mountainous areas. These projects were implemented to help our farmers and less fortunate households to have a better source of water, likewise to improve lives in countryside.
We also cater the needs of our people by giving and providing their social needs. Many organizations, Barangays, Groups and Individuals were granted with their request or their solicitations. We also donate computers, Chairs, White boards, other school facilities, school building, medals, prizes for raffle & draws and many more to the School Around us.
We extend our help to the victims of different typhoons in the country and other tragedies outside the country through the NATIONAL CONFEDERATIONS OF COOPERATIVES like the earthquake in Chile,Tsunami in Japan and other affected countries with flood and calamities.
We also give due recognition to our members during Special occasions. Our members Christmas Program were truly enjoyed because of many gifts and foods were served. Officers and Staff also have different Lakbay Arals to learn and share best practices of successful cooperatives and attended different Forums not only in Luzon, Visayas and Mindanao but also in Thailand, Korea, Bangladesh,Vietnam, Japan, Sweden and Canada. The lessons learned to this visits and forums were all shared to our members and applied in our day to day operation. We believed that lakbay-Aral, Seminars and Forums are one of the best investments we can have.
To sum up for the rapid expansion and growth of SACDECO, the following are attributed: functional and thinking Board, technically and globally competent management and staff, operational compliance and adherence to the rules and regulations, increasing support by the general membership and strong linkages.
As of December 31, 2011, SACDECO has a total regular membership of 15,929 and associate and youth members of 17,956 respectively.
In SACDECO: We continue “Reaching Out, and Enriching Lives”
by: Jackie de leon