2011 R - 013 - SETTING THE PRICE OF, AND ORDERING THE SALE OF INOS COOKWARE SETS

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 18 April 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011-013

SETTING THE PRICE OF, AND ORDERING THE SALE OF INOS COOKWARE SETS

WHEREAS, the OCGEMPC has failed to profitably dispose several pieces of Inos cookware sets which have been in its merchandise inventory for more than three years, and many of these cookware sets have just been given away for free to the members during the past general assemblies of the cooperative;

WHEREAS, the said cookware sets have continuously depreciated in value due to the emergence in the market of better and cheaper cookware of the same kind;

WHEREAS, the Board deems it more beneficial to the cooperative and its members, to convert these cookware sets into cash by making them available through cash sales or loans at affordable prices;

NOW THEREFORE, upon of motion of Director Beth Daduya, seconded by Director Genia Eclarino, the OCGEMPC Board of Directors in session assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to offer the Inos Cookware for cash sale or through appliance loans, at a minimum price of Seven Thousand Pesos (P7, 000.00) per set, effective immediately.

Done this 18th day of April 2011.

2011 R - 012 - UPDATING AND READJUSTING THE ACCOUNTS OF ATTY. RAYMOND DILAG

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 18 April 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011- 012

UPDATING AND READJUSTING THE ACCOUNTS OF ATTY. RAYMOND DILAG

WHEREAS, Republic Act 9520, otherwise known as “The Cooperatives Code of 2009”, reduced the allowable shares capital of each cooperative member from 20 percent to 10 percent of the cooperative’s paid up shares capital;

WHEREAS, as a result of the enactment of RA 9520, the capital shares of Atty. Raymond Dilag as of 31 December 2009 have exceeded the allowable maximum 10 percent of the OCGEMPC’s paid up shares;

NOW, THEREFORE, upon motion of Director Julie U. Reyes seconded by Genia R. Eclarino, the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative in session assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to, as it hereby instructs the OCGEMPC management staff, particularly the Manager and Treasurer, as follows:

1. Reduce the capital shares of Atty. Raymond Dilag to conform with the maximum allowed under RA 9520 and the OCGEMPC By-Laws;

2. From the amount in excess of the shares capital, offset the outstanding balance on the secured loan of Atty. Dilag, applying thereon the OCGEMPC policy of 2 percent interest on every skipped monthly installment and 3 percent interest on the remaining balance after the maturity date of the loan;

3. The final balance shall be treated as long term time deposits;

4. All these adjustments shall be effective as of 01 January 2010.

Done this 18th day of April 2011.

2011 R - 010 - ADOPTING THE TERMS OF REFERENCE FOR THE CONDUCT OF THE INVESTIGATION OF SUSPECTED OFFENSES COMMITTED BY CERTAIN OFFICERS OF THE OCGEMPC

Excerpts from the Minutes of the Meeting of the OCGEMPC Board of Directors Held on 31 March 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011-010

ADOPTING THE TERMS OF REFERENCE FOR THE CONDUCT OF THE INVESTIGATION OF SUSPECTED OFFENSES COMMITTED BY CERTAIN OFFICERS OF THE OCGEMPC

WHEREAS, the OCGEMPC Board of Directors has decided to conduct an investigation of suspected offenses committed by certain officers of the cooperative;

WHEREAS, there is a need for the Board to adopt the terms of reference for the said investigation in order to set its limits, and ensure that it be objective, systematic and beneficial to the interest of the OCGEMPC;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the OCGEMPC in session assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to, as it hereby adopts the following Terms of Reference which shall take effect immediately until the investigation is officially terminated:

TERMS OF REFERENCE

FOR THE OCGEMPC BOARD OF DIRECTORS’ INVESTIGATION OF SUSPECTED OFFENSES COMMITTED BY REYNALDO ERINGCO AND AILEEN C. SANCHEZ AGAINST THE OCGEMPC

A. BACKGROUND

This investigation was triggered by the discovery, sometime in March 2011, of OCGEMPC documents showing unusually large amounts of loans amassed by, and way beyond the capacity to pay of, certain members of the cooperative. A summary review of these documents by the Board showed that as of January 2011 Reynaldo Eringco, part time staff of the OCGEMPC has a total unpaid loans balance of P990,482; Aileen C. Sanchez, Director and former Chairperson of the OCGEMPC has a total unpaid loans balance of P502,675; the latter’s sister, Anna Lucille Cuevas has a total unpaid loans balance of P136,742; and their brother Alfred Cuevas a total unpaid loans balance of P85,335. It appeared from the records that the said loans were acquired in violation of OCGEMPC policies, rules, and regulations.

In the Board meeting held on 11 March 2011 Ms. Sanchez was confronted with the above-mentioned records of her loans and those of her siblings and Reynaldo Eringco. Ms. Sanchez denied responsibility for her own loans and told the Board that she did not know she owed the Cooperative that much already. She told the Board that in fact, this was the first time she learned of the total amount of her loans. She said, “Rey Eringco buried me in loans without my knowledge.” She admitted having had some financial problems in the past and that she indeed needed loans, but that Rey Eringco had always assured her that there were still loan windows available to her.

Reynaldo Eringco, on the other hand, when confronted with the records and told of Ms. Sanchez’ statements against him, just kept silent and did not respond nor react.

Considering the gravity of the probable offenses committed, and the sensitive positions occupied by the two principals involved, the Board decided to pursue an investigation of the amassed unusual loans. The Board also decided to take this opportunity to investigate other probable major offenses committed by Ms. Aileen Sanchez, about which many members are still asking for information, but which were never investigated nor put to proper closure during the term of Ms. Sanchez as Chairperson of the OCGEMPC Board.

In the meantime, Reynaldo Eringco is placed on preventive suspension, while Ms. Sanchez voluntarily went on a leave of absence from her duties as officer of OCGEMPCI pending the investigation.

B. NATURE AND PURPOSE OF THE INVESTIGATION

This investigation is essentially a fact-finding activity or series of activities to establish the truth regarding the probable irregular transactions and offenses committed by Mr. Reynaldo Eringco and Ms. Aileen Sanchez against the OCGEMPC.

More specifically, this investigation shall be based on already existing prima facie evidence and shall aim to:

1. Establish more objectively whether offenses were actually committed

2. Determine the nature of the transactions, how offenses were committed, and establish who were responsible or liable for them

3. Draw lessons from the facts gathered in the investigation that could guide the Board in promulgating new, or revising existing policies, rules and regulations to further protect the general interest of members and improve the operations of the cooperative.

C. SCOPE OF THE INVESTIGATION

1. Subjects of the Investigation – Without prejudice to the future investigation of other possible offenses of other officers and members, this investigation shall focus only on the following probable offenses based on OCGEMPC records:

a. Unusual Loan Accounts of Reynaldo Eringco, Aileen Sanchez, Anna Lucille Cuevas and Alfred Cuevas

b. Unliquidated Cash Advances of Aileen Sanchez and Rey Eringco

c. Unauthorized Erroneous Computation and Distribution of Dividends which caused an upheaval of OCGEMPC members in year 2010.

2. Period Covered by the Investigation – As indicated in the OCGEMPC records which are the bases of this investigation, the period to be covered by this investigation shall be from year 2008 to March 2011.

D. METHODOLOGY AND PRECEDURE OF THE INVESTIGATION

1. The investigation shall be done mainly through a diligent review of OCGEMPC official documents and records concerning the corresponding transactions under investigation. This shall include, but may not be limited to, loan notes, ledgers, journals, transacted checks, books of accounts and other financial documents.

2. Face to face interviews of the principals, concerned OCGEMPC staff and other witnesses shall also be done whenever necessary to elicit pertinent information, verify records, clarify transaction procedures and crosscheck the testimony of some witnesses.

3. Whenever necessary, some of those concerned may be requested to sign affidavits.

4. The proceedings of the investigation and the facts gathered shall be thoroughly and systematically recorded for official record purposes and other future use.

E. THE INVESTIGATING BODY

1. As provided in the OCGEMPC By-Laws, the Board shall be the body to conduct this investigation. It may, however, seek the assistance of the Ethics Committee and other Committees of the OCGEMPC in the conduct of this investigation.

Done this 31st day of March 2011 at Olongapo City, Philippines.

2011 R - 008 - APPROVING THE SCHEDULE OF GENERAL ASSEMBLY AND ELECTION-RELATED ACTIVITIES

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 11 March 2011 at the OCGEMPC Board Room, Olongapo City Hall

Resolution No. 2011-008

APPROVING THE SCHEDULE OF GENERAL ASSEMBLY AND ELECTION-RELATED ACTIVITIES

WHEREAS, R.A. 9520 and the OCGEMPC By-Laws require the holding of a General Assembly and Election of Officers every year;

WHEREAS, the Election Committee has proposed the adoption of a schedule of activities leading to the conduct of the annual General Assembly and Election of Officers for the guidance of all concerned, and to ensure that these activities shall be conducted in a truly democratic manner;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative in meeting assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to adopt the proposed Schedule of Activities leading to the annual OCGEMPCI General Assembly and Election of Officers, as follows:

Activity

1. Announce date and venue of the GA; announce/post vacant positions to be filled up through elections

2. File Certificates of Candidacy (CC)

3. Screen candidates; release list of, and notify qualified candidates

4. Candidates campaign

Schedule/Duration:

1. At least 30 days before GA announce/post vacant positions to be filled up through elections

2. Start exactly 30 days before elections, lasting 10 consecutive days,ending at 5:00 p.m. on the 10th day

3. Start exactly on the day after deadline notify qualified candidates of filing CC’s, lasting exactly 7 consecutive calendar days thereafter

4. Start exactly 14 days before election and ends on election day

Done this 11th day of March 2011 at Olongapo City, Philippines.

2011 R - 007 - APPROPRIATING THE AMOUNT OF P200, 000 TO DEFRAY THE EXPENSES FOR THE 2011 OCGEMPC GENERAL ASSEMBLY

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 11 March 2011 at the OCGEMPC Board Room, Olongapo City Hall

Resolution No. 2011-007

APPROPRIATING THE AMOUNT OF TWO HUNDRED THOUSAND PESOS (P200, 000) TO DEFRAY THE EXPENSES FOR THE 2011 OCGEMPC GENERAL ASSEMBLY

WHEREAS, it is necessary to allocate funds for the conduct of the OCGEMPC 2011 General Assembly in order to ensure its success and at the same time put a limit on its expenses;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative in session assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to, as it hereby appropriates the amount of Two Hundred Thousand Pesos (P200,000) out of the general operating funds of the OCGEMPC, to defray the expenses to be incurred in the conduct of the General Assembly to be held in 20 April 2011.

Done this 11th day of March 2011 at Olongapo City, Philippines.