Visayas coops call for end of CISA

CEBU, Philippines - More Visayas cooperatives are joining the call of the Cebu CFI Community Cooperative to stop the implementation of the Credit Information System Act (CISA).

 This after CFI chairman, former Deputy House Speaker Pablo Garcia, thoroughly discussed the illegality and unconstitutionality of the law during the Visayas-wide Consultative Convergence held in Cebu City last Friday initiated by the Cooperative Development Authority.

 Garcia shared the position paper of the CFI stating that, "the Credit Information System Act (CISA) is an idea whose time may never come."

 Passed into law in 2008, Republic Act No. 9510, also known as CISA, mandates all lending institutions to submit their clients' basic and credit data to the Credit Information Corporation (CIC).

 Garcia pointed out that CISA is unconstitutional, since its implementation violates article III of the Bill of Rights of the Constitution.

 Moreover, Garcia said that CISA would give certain governmental powers to a stock and profit-making corporation, the CIC.

 "This constitutes and undue and unconstitutional delegation of legislative powers," said Garcia.

 With particular reference to cooperatives, Garcia stressed that the implementation of CISA would violate certain provisions of R.A. No. 9520 or the Philippine Cooperative Code.

 As general concepts, the law provides that a cooperative is an autonomous and duly registered association of persons, with a common bond of interest, and independent controlled by its members.

 Article 140 of the Code prohibits "direct or indirect interference or intervention by any public official or employee into the internal affairs of a cooperative of which he is not a member."

 "The operation of CIC, with respect to cooperatives will be an 'interference' or 'intervention' by CIC into the internal affairs of cooperatives and which is 'inimical' to their autonomy and independence," Garcia said.

 Garcia also pointed out that CISA has been overtaken and rendered useless by a much later legislation, R.A. no. 10173 or the Data Privacy Act of 2012, which prescribes stringent requirements and conditions in the submission and processing of personal information such as personal credit data.

 As soon as cooperatives will not get favorable response on requests to set aside CISA and for CIC to exclude them from its operation in the collection of credit information from their borrowers, Garcia said cooperatives should file a petition in court for declaratory relief and prohibition, with prayer for temporary restraining order or preliminary injunction.

 A participant moved for the adoption of the position paper of the CFI, but lawyer Elias Espinosa, vice chairman of Cebu Newsworkers Multi-purpose Cooperative, instead suggested for cooperatives to individually pass a resolution supporting the position of CFI.

 He cited Cebu News Coop, which has already passed a resolution supporting the position of the CFI. (FREEMAN)