It is a common practice among transport cooperatives that their respective Chairman or a member of the Board of Directors acted as the cooperative liaison officer or the authorized representative to transact business with the concerned government agencies such as OTC, LTO, LTFRB among others.

This practice is a clear violation of the provision of R.A. 9520 particularly Article 39, Sec. 2 thereof which states that: œThe members of the Board of Directors shall not hold any other position directly involved in the day to day operation and management of the cooperative. 

In order to avert such malpractice and accord dignity and respect with the TC Board of Directors, the OTC Board in its regular meeting held last February 26, 2014 passed the following policy/guidelines through Resolution No. 2014-02-09, to wit:

1. Any member of the Board of Directors is hereby prohibited to act as cooperative liaison officer. The TC liaison officer duly appointed/designated by the Board of Directors through a Resolution and duly endorsed by OTC shall be the only one allowed to transact business with LTFRB, LTO and other concerned government agencies in relation to its day to day operations.
   
   
2. The Chairman and/or the Vice-Chairman of transport cooperative as designated by the Board of Directors through a Resolution and duly endorsed by OTC shall represent/s their respective TC organization in all fora, conferences, dialogues/meetings and hearings called for the purpose by the concerned government agencies, i.e. OTC, LTO, LTFRB, DOTC, among others.

For information and strict compliance

(SGD) MELCHOR V. CAYABYAB
Chairman