Supreme Court E-Library
Information At Your Fingertips

Pursuant to the provisions of Republic Act No. 9520, Executive Order No. 898 series of 1983 and other related laws and issuances, the Office of Transportation Cooperative (OTC) hereby obliges the following guidelines governing the issuance of Certificate of Good Standing (CGS) to accredited transport cooperatives:

I. GENERAL OBJECTIVE

Certificate of Good Standing (CGS) is a proof-document that generally states and projects the operational status and condition of the transport cooperative CGS holder. It is likewise a tool that manifests that the transport cooperative is authentically protecting its members and resources, preserving the organization and carrying out its purposes/objectives, among others.

In line with its mandate and supervisory functions; OTC adopts this administration mechanism for purposes, not limited to:

a. Set the requisites and parameters for CGS entitlement and issuances as provided for in the Cooperative Code of the Philippines of 2008 (RA 9520) and its Implementing Rules and Regulations, the Charter of the Office of Transportation Cooperatives (EO 898 series of 1983) and its issued Administrative Order 2000-01, and other related laws/issuances; and

b. Re-enforce the administrative and supervisory responsibilities of the Agency and its concerned units to ensure proper observance and implementation of this Guidelines.

c. Establish the significance of CGS for the availment of and/or access to privileges, incentives and assistance accorded to transport service cooperatives by other concerned government institutions;

II. COVERAGE AND SCOPE

Subject to compliance with the prescribed requirements, the issuance of certificate of good standing shall cover all transport cooperatives accredited with OTC that are active and currently operating.

III. USES/PURPOSES OF CGS

The Certificate of Good Standing (CGS) shall entitle the transport cooperative holder to enjoy and/or access the rights, privileges, benefits, assistance and incentives accorded by the Cooperative Law and other related laws and issuances. It is a pre-requisite or essential document needed in the facilitation of the transport cooperative’s transactions with the Land Transportation Franchising and Regulatory Board (LTFRB) and the Land Transportation Office (LTO) for road transport and Maritime Industry Authority (MARINA) for water transport as embodied in the respective Memorandum of Agreements of these institutions with OTC. The Certificate may likewise be utilized by its TC-holder as a material aid/tool to support applications or proposals for financial/technical grants/aids/assistance from other government and non-government institutions.

IV. GENERAL QUALIFICATION FOR AVAILMENT

Except for newly-accredited transport cooperative, which gets an automatic CGS after the approval and issuance of its accreditation certificate with OTC, a CGS may only be issued to accredited transport cooperative that is on active/operating status/condition.

V. DOCUMENTARY REQUIREMENTS

The requesting/applicant Transport Cooperative shall submit a letter-request or accomplished request form duly signed by the TC Chairman or authorized alternate representative with the following supporting documents:

a. Audited Financial Statements of the preceding year;
b. Minutes of the General Assembly Meeting for the current/preceding year;
c. Updated Bond of Accountable Officers;
d. Duly accomplished OTC Annual Report;
e. Affidavit of Authenticity of Documents Submitted; and
f. Summary Report on TC Members Profile as per OTC Board Resolution No. 2013-05-09

For a transport cooperative that failed to renew its CGS for one (1) year and above preceding the current application, OTC may also require justification/ explanation letter/write-up to the TC-applicant subject to denial or approval of the approving authority. The cooperative shall be required to act on the deficiency/ies to be rectified based on the approved timeline to be set by OTC and subject for compliance monitoring. Habitual/persistent repetition of justifying deficiency in documents shall not be tolerated and shall be the basis for non-issuance of CGS.

Subject to consultations and upon approval/confirmation of the OTC Board, the Agency may also require in the future, additional non-regular or special document/s, if necessary, in aid of policy or special program formulation.

VI. PROCEDURES

a. Filing of Application

The TC-applicant, thru mail or personal filing, should submit the written request, together with the documents enumerated in Section V - a to f.

For personal filing, the TC-applicant representative, after registering with the Customer Help-Desk Officer, shall be directed to the Office of the Chairman (OC) to file/submit the required documents. The receiving staff should note whether the requesting party representative shall wait for the release of the CGS, come back for pick-up or will be mailed back to the requesting TC. In case of mailed application, the same shall be submitted directly to the OC. The OC designatedstaff, after receipt and registration of the documents, shall route the same to the Operations Division (OD) for proper disposition.

b. Processing Application and Release of CGS

Immediately after receipt of documents, the assigned OD receiving and technical staff shall evaluate and process the application for final review/validation of the designated Senior Staff and OD Chief.

For applicant that has fully satisfied the requirements, a CGS shall be prepared for the final approval/signature of the OTC Chairman, coursed thru and noted by the Office of the Executive Director. Signed CGS shall be subjected to the official hologram sticker /dry-seal assignment by the OC assigned staff prior to its release.

OC shall transmit the signed CGS and other attachments to the assigned OD staff for retainment of file-copies of the documents. The original CGS: shall be forwarded to the assigned staff of the Administrative and Finance Division (AFD) for proper recording and releasing (thru mail, pick-up, hand-over) to the TC-applicant/ authorized representative.

For applicant with deficiencies, a verbal advice (for walk-in client) shall be undertaken and formal notice (for both mailed application and walk-in TC client) to be immediately prepared to inform the TC-applicant of such deficiencies and the necessary actions needed in this regard.

Based on the public service standard, the entire three (3) steps processes shall be undertaken within the committed time of 7 hours and 45 minutes or less. Transacting clients shall likewise be required to assess/rate the entire CGS issuance process using the rating forms to be provided by the Customer Help- Desk Officer.

VII. CGS APPLICATION FILING PERIOD

Subject to compliance with the requirements in Item VI, a transport cooperative shall apply for a CGS, on or before its expiration date. In this regard, OTC shall issue regular reminders for CGS renewal and for those TCs that failed to renew their CGS on time. It should be made clear also that OTC and its concerned units shall not in any way, charge filing fees, penalties or any form of monetary consideration in processing the CGS application.

VIII. CGS VALIDITY

Issued CGS for existing transport cooperatives shall be valid and effective until June 30 of the succeeding year. For newly accredited TCs, the automatic issued CGS shall also be valid up to June 30 of the succeeding year, establishing thereby, a uniform expiry date.

IX. BASIS FOR NON-ISSUANCE/WITHDRAWAL OF CGS

a. Submission of false, fake or misleading documents/reports
b. None or incomplete submission of the required documents
c. Non-compliance with the provisions of the OTC Administrative Order and other issued circulars/memoranda
d. Failure to renew CGS for two (2) or more years, without justified cause/reason to be determined after due process
e. Habitual/persistent repetition of justifying deficiency/ies in documents.

X. SANCTIONS

A transport cooperative without a CGS shall not be entitled to any assistance from OTC. Action may be suspended on any pending franchise/registration application/petition and any other related transactions of the concerned transport cooperative requiring OTC’s engagement.

Concerned TC officials/officers may likewise be warned or penalized for neglect of duty.

For a transport cooperative that continuously failed to renew its CGS for two (2) or more years, cancellation of its accreditation certificate may be initiated and shall be the basis for recommending the cancellation of its registration with CDA and will adversely affect TC’s dealings with the LTFRB and LTO (for road transport) or MARINA (for water transport).

This Memorandum Circular takes effect immediately. Approved per OTC Board Resolution No. 2014-02-07 dated 26 February 2014.

For guidance and/or compliance of all concerned.

(SGD) MELCHOR V. CAYABYAB
Chairman