Engr. Isagani M. Barcelona

This letter responds to a complaint from the general manager of MERWASCO regarding alleged interference in the cooperative's internal affairs. The letter argues that the complaint lacks legal basis for three reasons: 1) the allocation and disbursement of funds is a public matter, not entirely internal, as the cooperative is owned by member-consumers. 2) The current controversy involves illegal disbursement of funds without board approval, not election interference. 3) The alleged illegal disbursement of Php 698,000 is a matter of public concern as the cooperative is owned by the people of Medina. The letter calls for a thorough investigation of the controversial issue involving MERWASCO.

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Engr. Isagani M. Barcelona

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February 21, 2022

Engr. Isagani M. Barcelona

General Manager
Medina Rural Waterworks and Sanitation Cooperative (MERWASCO)
Purok 6, Brgy. South Poblacion, Medina, Misamis Oriental

Dear Sir,

This letter serves as a formal response to your letter-complaint dated February 14,
2022 seeking to call the attention of all public officials and employees on the
independence of every cooperative by virtue of several provisions of RA 9520 or the
Cooperative Code of the Philippines, as cited in your letter-complaint.

Primarily, it is my contention that your complaint is bereft of any legal basis

particularly on your allegation on direct or indirect interference or intervention by any
public official or employee into the internal affairs of MERWASCO. It should be
emphasized that the allocation and disbursement of funds is not entirely an internal
issue as this matter is imbued with public interest because MERWASCO, being a
cooperative is essentially owned by the public as member-owner-consumers.

Secondly, your allegation on influencing the election and appointment of officers,

directors, committee members and employees through public or private endorsement
or campaign for or against any person or group of persons is also baseless since the
current controversy involving MERWASCO does not deal with the election of the
Board of Directors but ultimately involves illegal disbursement of funds for spending
cooperative funds without prior concurrence or approval of the Board of Directors.

Thirdly, it should be given emphasis that the issue on alleged illegal disbursement of
funds is of paramount importance and is therefore a matter of public concern since the
aforesaid cooperative is owned by the people of Medina particularly the member-
owner-consumers. Briefly said, the cooperative is not a private business owned by
few people.
Finally, the right of the people to information on matters of public concern enshrined
in the Philippine Constitution must be upheld. The amount of around Six Hundred
Ninety Eight Thousand Pesos (Php 698, 000.00), alleged to have been illegally
disbursed as it was used for a purpose without the prior approval of the Board of
Directors is certainly a matter of public concern. Therefore, the contention that there
is interference into the internal affairs of the cooperative is completely groundless.