Banks asked to go easy on transport coops
The city council asked the Land Bank of the Philippines to stop requiring transport cooperatives or corporations applying to opening accounts with the bank to present their business permits.
Under Resolution 143, s. 2022, the city council said LandBank must recognize that transport cooperatives or corporations in the city already recognized as a legal entity through their certificate of registration with the Cooperative Development Authority or the Securities and Exchange Commission.
Transport coops need to open accounts with the bank to avail of the service contract program or other initiatives of the Land Transportation Franchising and Regulatory Board or the Department of Transportation.
The council said most transport cooperatives or corporations in the city were newly established and that the office address they declare is that of the officer or member of the cooperative or corporation and almost all of them do not have a business permit.
The LTFRB required transport cooperatives or corporations to open accounts with the government bank for them to avail of the service contract program or other related programs of the agency or the DOTr.
However, the LBP has been requiring transport cooperatives and corporations to present their business permits.
The council said application for business permits in the city is very stringent and adds to the predicament of the transport coops and asked the bank to recognize the CDA or SEC registration of the groups. – PIO release