By: Deanie Lyn Ocampo and Sheena Pena

Republic Act No. 11469 or “Bayanihan to Heal as One Act” was signed into law on March 23, 2020 by President Duterte declaring a national health emergency throughout the Philippines as a result of the COVID-19 situation. It provides, among others, that all lenders apply the 30-day mandatory grace period for loans falling due within the period of the Enhanced Community Quarantine (ECQ), which was extended until May 31, 2020.

With that provision, how did three cooperatives thrive during the ECQ and continue to flourish during this pandemic?

Baao Parish Multipurpose Cooperative in Camarines Sur (Ms. Anabell B. de la Viga, General Manager), Oro Integrated Cooperative in Cagayan de Oro City (Mr. Floriano R. Hilot, Chief Executive Officer,) and San Dionisio Credit Cooperative in Paranaque City (Ms. Cielito L. Garrido, Chief Executive Officer) narrated their experiences with us.

Coping through the pandemic

The cooperatives gave value to strengthening their members’ sense of security. They continued paying interests for members’ savings, held regular meetings of the Board and management, posted announcements on Facebook, and even released the 2019 dividends, to show that the cooperatives were still operating. Acts of compassion, such as no filing of court cases and no demotion of membership classification were also done. The loan moratorium was enhanced, for example, loans were further extended to reduce the monthly amortization.

Some cooperatives relaunched existing loan products, and enhanced members’ services, ex. emergency and cash assistance, health care assistance, free laboratory services, and mortuary assistance benefits. New types of loan were also created, ex. computer, motorcycle, and bicycle loans.

To give their employees peace of mind, the cooperatives allowed flexible work arrangement, released a proportionate amount of the 13th month pay, approved new leave credits, and gave one-time hazard pay.

At the management level, crisis management guidelines were immediately crafted or enforced, a Crisis Management Team stayed on top of matters, and some operational guidelines were amended. The managers focused on liquidity management, loan extension, and other remedial strategies. 

Good practice, Innovation, and Inspiration

Online transactions using the KAYA cards and ATMs proved to be very helpful at this time. Digitizing processes for loan application, membership application, payments and deposits has begun.

Nevertheless, face-to-face or on-site transactions are retained because not all members have easy access to the Internet, so the Baao Parish Multipurpose Cooperative offers “home deliveries” of loan releases to members.

The San Dionisio Credit Cooperative, in particular, designed a B.E.E.F. Program, which focuses on business, employment, education, and food to help alleviate marginalized members from poverty.  Chat groups were set up turned into Pook-Tulungan units, which implement programs and projects, promote action based on basic philosophy and principles of coops, build a sense of community and increase the value of cooperativism.

The Oro Integrated Cooperative consolidates the vegetables and corn produce of its members and markets its members’ products online as well. Early on, it donated rice and food packs to its members, to front liners, and to LGUs.

Lessons Learned

1. Business continuity planning is truly significant.
2. Special funds, like Reserve Fund, Emergency Fund, must actually be funded.
3. Adhere to prudent financial standards. Cooperatives that are disciplined according to these standards become resilient.
4. Cooperative education and values should be regularly given and promoted. It is successful when one sees members continuing to save, to pay their loans, and to avail of co-op services despite the pandemic.
5. Leadership roles are important. If those in governance and those in management are united, then they are able to come up with fast and good decisions.
6. The spirit of volunteerism is very much alive – self-responsibility, stewardship, and servant leadership are its important values.
7. Uncertainty breeds creativity and an innovative perspective helps accept change.
8. Well-informed and values-driven members enable cooperatives to sail through a storm.

This article comes from the e-Talk session organized by the National Confederation of Cooperatives (NATCCO) on September 22, 2020, for the CODE-NGO Social Development Week 2020. The theme of the week is “Covid-19 Road to Recovery: Solutions from the Communities”. Watch the full video of the session here.