‘LOAN MESS’: CDA files charges against Iloilo City Hall co-op execs

By Joseph Bernard A. Marzan

The Cooperatives Development Authority (CDA) Region 6 has filed formal charges against former members of the board of directors of the Iloilo City Government Employees’ Multi-Purpose Cooperative (ICGEMPC) over alleged irregularities in loan transactions in 2023.

ICGEMPC’s current chairperson, lawyer Joseph Edward Areño from the City Legal Office, confirmed on Monday, September 16, that CDA-Region 6 Director Antonio Escobar Jr. filed a motu proprio complaint with the agency’s Adjudication Division.

A complaint notice dated August 1, 2024, cited violations of Republic Act No. 9520 (Philippine Cooperative Code of 2008) against 14 officers, including:

• Former chairperson Leo Elevencione
• Vice chairperson Salome Villamor
• Board members Susan Sicad, Cherie Ampig, Harriette Solis, Carmelita Orat, and Josie Castillo
• Audit committee chair Angelita Alvarez and committee member Johana Pauline Vidal
• Credit committee chair Carmelita Garbillos and committee member/loan clerk Evangeline De Juan
• General Manager Irene Duliesco
• Bookkeeper Margaret Malban
• Treasurer Joy Bersamin

The charges include Serious Dishonesty, Grave Misconduct, Disgraceful Conduct, Inefficiency, Incompetence, Grave Abuse of Authority, Gross Negligence, and Gross Neglect of Duty.

The complaint highlighted alleged irregularities in loan releases, citing multiple loans granted to Elevencione and Duliesco within short intervals.

“Multiple loans in a month were released to the former Chairman, General Manager, Treasurer, Bookkeeper, and other staff members of ICGEMPC. Notably, as per the ledger of ICGEMPC, former Chairman Leo M. Elevencione obtained back-to-back loans between the months of June and July with only a 10-day interval,” the complaint read.

“Significant amounts of past due Director, Officer, Stockholder, and Related Interests (DOSRI) loans were discovered, such as that of the former Chairman, General Manager, Treasurer, Bookkeeper, Loan Clerk, and other staff members of ICGEMPC. Specifically, two (2) DOSRI loans were noted to have reached such a staggering amount, that of former Chairman Elevencione and General Manager Irene V. Duliesco. As per the ledger of ICEMPC, General Manager Duliesco obtained consecutive loans 28 times which are still outstanding,” they added.

The CDA also criticized the absence of a policy limiting DOSRI loans, which should not exceed total capital contributions.

The complaint noted that several officers, including Elevencione and Duliesco, exceeded the cooperative’s six-times capital build-up policy.

“When asked if there was a policy on limitations as to DOSRI loans during their incumbency, all of the interviewees answered in the negative. They reasoned that as per cooperative practice, the directors, officers, staff, and members of the ICGEMPC were allowed to borrow loans as long as it is not over six (6) times their capital buildup as the maximum limitation,” they said.

“Nevertheless, as shown by the ledger of ICGEMPC, there are DOSRI borrowers who exceeded their six-times capital build-up policy, particularly, that of [Elevencione] and [Duliesco],” they added.

The ICGEMPC in the second half of 2023 suffered huge financial losses from the accumulated loan releases amounting to P31 million.

Iloilo City Mayor Jerry Treñas on September 28, 2023, issued Executive Order No. 129 Series of 2023, declaring then-CDA-6 director Nora Patron as persona non grata in the city.

The mayor cited lack of action from Patron and the issuance of a Certificate of Compliance despite the brewing controversy over the DOSRI loans.

CDA chairperson Joseph Encabo last year admitted that there had been lapses in the CDA-6’s handling of the issues and vowed the central office’s own investigation on the matter.