annual report 2006 page 2-25

� P A G L A U M M U L T I - P U R P O S E C O O P E R A T I V E

TAhAS

kAAkUhAn

Ang Paglaum Multi-Purpose Cooperative, giniyahan sa labaw’ng Makagagahum, usa ka

lig-on, malamboon, kasaligan nga kooperatiba, dangpanan sa kabulahanang ekonomikanhong, politikanhon ug katilingbanong kahimtang sa katawhan, nagalihok sa pag-amping sa kinaiyahan ug katawohon nga panag-angay.

PAnGLAnTAw

Molihok aron makab-ot sa mga sakop apil ang komunidad, ang gahum nga

mopalambo sa ilang kinabuhi, pinaagi sa paghatag ug kalidad nga kooperatibanhon nga mga serbisyo ug programa.

Mapalambo, mopalig-on ug magmugna ug bag-ong serbisyo, pinaagi sa makanunayong pagtigum, pagdugang sa Share Capital ug pagpahiluna sa maayong pamaagi sa panalapi.

Mopahiluna ug makanunayong edukasyon, konsultasyon ug padayong serbisyo sa katawhan.

Adunay makanunayong pagsusi sa mga palisiya ug paghimo sa mga bag-o ug angay’ng mga balaod ug pagtuman niini.

Padayon nga pakiglambigit sa ubang kooperatiba, mga NGOs ug GOs.

Motabang, makig-abin sa pagpanalipod ug pagbantay sa kadagaya sa kinaiyahan.

Schedules of General Assemblies 3

Messages 4

PAGLAUM a touching story of

hope and cooperation 1�

�006 Performance at a Glance 15

Independent Auditor’s Report 17

Credit Management Report �8

Report on Membership �9

�006 Training Activities 30

�006 In-house Trainings 31

�006 Trainings/Presentations 31

�006 Election Result 3�

PAGLAUM Budget for �007 33

The Multi-Awarded Coop 34

Affiliations 35

Officers2006-2007 36

Management & Staff 36

Branches 37

ACTIVITIES 40

Laboratory Coop 43

Future Plans 43

TABLECOnTEnT

of

P A G L A U M M U L T I - P U R P O S E C O O P E R A T I V E 3

DIPOLOGMay �3, �007, 1:00 - 5:00 PM

St. Vincent Covered Court, Fr. Ramon St.,Estaka, Dipolog City

PAGLAUM MULTI-PURPOSE COOPERATIVESchedule of General Assemblies

OZAMIZ / TUDELAMay �4, �007, 1:00 - 5:00 PM

Tudela Gym, Centro napo, Tudela,Misamis Occidental

CALAMBAMay �5, �007, 1:00 - 5:00 PM

Don Mateo Matunog Gym, S.w.P.Calamba, Misamis Occidental

PLARIDELMay �8, �007, 1:00 - 5:00 PM

Lopez Jaena Gym, Lopez Jaena,Misamis Occidental

OROQUIETAMay �9, �007, 1:00 - 5:00 PM

ABC Gym, Oroquieta City

PAGADIANMay 30, �007, 1:00 - 5:00 PM

Balgo Bldg., Capitol Compound,Pagadian City

4 P A G L A U M M U L T I - P U R P O S E C O O P E R A T I V E

Republic of the Philippines

MALACAÑAN PALACEManila

Warmest greeting to the board of directors, members and consumers of

the Paglaum Multi-Purpose Cooperative (PMPC) as you hold your

Annual General Assembly.

Multi-purpose cooperative like yours help the government in addressing

the many challenges that it is facing. I laud PMPC for initiating programs,

particularly your micro-finance which have benefited mostly women small

entrepreneurs in Misamis Occidental, Zamboange del Sur, and Zamboanga

del Norte.

May you continue to promote the values of hard work, cooperation,

and discipline so that your members can truly successful micro-

entrepreneurs.

Mabuhay tayong lahat!

GLORIA MACAPAGAL-ARROYO


SEEDFINANCE Corporation, its forerunner the SEAD, Inc.-NGO, and CARE-Philippines, congratulate the Paglaum Multi-Purpose Cooperative (PMPC) on the occasion of its 15th Annual General Assembly to be held on May 23, 2007. With this year’s theme of ‘Kalambu-an Sa Kooperatiba, Kadaugan sa Matag Pamilya’, one is reminded of the common perspective our organizations share with Paglaum MPC – that of a holistic, continuing development framework that emanates from the empowerment of the individual.

As Paglaum MPC brings the benefits of microfinance and its attendant services to a greater number of the poor and marginalized in Mindanao, it takes microfinance to a new level of purpose and direction. Targeting the enterprising poor, Paglaum MPC provides its clientele with a direction, one that makes them aspire to leap out of the pits of poverty towards economic emancipation. The microfinance client as an individual makes that initial leap, and as the individual gains more clout and economic control, she takes along her family with her. In a typical Filipino multi-familial setting, the household is the next step, say in a micro-enterprising housewife who engages in local handicraft-making and begins to employ her family and household members. As this micro-enterprise gains even more scale, nothing stops the micro-entrepreneur from employing her neighbors and contributing to the economic development of an even bigger playing field, the local barangay or municipality. The micro- is no longer so as she gains small- or even medium-scale status. The vicious cycle of poverty is arrested as micro-entrepreneurs are set on their tracks of consistent and continuous growth, never coming back to their poverty pits. Paglaum MPC’s empowerment of its members, and accordingly their families and households, transforms the local communities where the coop operates. Such begins the reverse process of development trickling from below, from the individual level, to the barangay, the municipal, the provincial, regional, ultimately the national front. Paglaum MPC’s perspective is remarkable!

SEEDFINANCE Corporation shares that perspective with Paglaum MPC. Genuine community development - anchored on the strength of the cooperative’s members and their families and households – brings forth the remedies to poverty and marginalization. Just as Paglaum MPC envisions its members to grow, SEEDFINANCE takes its partner-organizations to a new level of development, moving from parochial cooperatives to provincial or regional microfinance institutions. Microfinance is merely the first step, and the total cooperation of SEEDFINANCE and its partners working hand in hand with the local government and its instrumentalities, the civil society, the business community, all these takes microfinance further. It is our privilege to be a partner of Paglaum MPC in this noble, empowering work, as together as partners we provide financial and business advisory services to the poor in the countryside.

As Paglaum MPC works from the realization and acceptance of the challenges to improve the lives of its members and their households and communities where they live, the new challenges of embracing a broader perspective of economic growth coupled with social goals begin to take shape. We are confident Paglaum MPC will face and live up to those challenges ably, competently, triumphantly!

Congratulations to Paglaum MPC, its officers and staff, its members, for an empowering work well done!

Mabuhay!

JuN P. PEREzManaging Director & COO

SEEDFINANCE Corporation / SEAD, Inc.


Republic of the PhilippinesPROVINCE OF MISAMIS OCCIDENTALOffice of the GovernorCapitol, Oroquieta City, 7207

Warm greetings and felicitation to the officers and members of Paglaum Multi-Purpose Cooperative on the occasion of your series of Annual General Assemblies from May 23-30, 2007.

For many years PMPC has always been a channel of various charitable services not only to its members but to the whole community as well. I admire PMPC’s dynamic and indubitable contribution towards the upliftment of the quality of life of our people. Indeed, the enormous dedication of your cooperative has inspired and empowered our people to develop their entrepreneurial skills and abilities.

The Provincial Government of Misamis Occidental is privileged to have PMPC as its potent partner in providing economic benefits to the people of the province. The National Award both PMPC and the Provincial Government shared which is dubbed as the Most Outstanding COOP-LGU Partnership in the Philippines is a tangible proof of our unified thrust of uplifting the economic condition of the people in the communities. It is indeed worthy to note that your cooperative is soaring to the greater height of accomplishments and is growing fast in terms of membership and provision of tangible and equitable economic services to the people.

Truly, the cooperation and unity of all your members are instrumental in the various successes achieved by your cooperative throughout its years of fruitful existence.

To all PMPC members, I wish you good luck and go onward in promoting the spirit of cooperativism among our people.

Mabuhay and God Bless!

LORETO LEO S. OCAMPOSProvincial Governor


Republic of the PhilippinesHOuSE OF REPRESENTATIVEQuezon City, Metro Manila

It is with pride that I extend my warmest greetings and felicitations to the officers and members of Paglaum Multi-Purpose Cooperative as they hold a series of Annual General Assemblies from May 23-30, 2007.

Paglaum Multi-Purpose Cooperative with the excellent leadership of its General Manager Gadwin E. Handumon has brought honor and prestige to our province especially to the Municipality of Plaridel having been recently awarded as the Most Outstanding Cooperative of the Philippines. Paglaum Cooperative provides employment as well as livelihood to those who are unemployed. Many of our constituents have become micro entrepreneurs. Financing has become very easy. These, among others, are the significant contributions of Paglaum Cooperative to the economy of our community, our province and our country.

Thus, I commend each and everyone of you for a job excellently done.

WISHING FOR A FRUITFUL ASSEMBLIES AND MAY GOD BLESS US ALL.

HON. ERNIE D. CLARETERepresentative

1st District, Province of Misamis Occidental


Congratulations Paglaum Multi-Purpose Cooperative on your 15th Annual General Assembly!

We at MASS-SPECC Cooperative Development Center, are very pleased to know that your cooperative has grown steadfastly. In the last five years, your cooperative has been able to get out of the corners of Plaridel, Misamis Occidental and established branches from as far as Pagadian City in the south to Sindangan, Zamboanga del Norte in the north. Branching has never been an easy endeavor. One coop can only establish a branch if it is ready to face the challenges that come on its way. But you have dared to seek for more communities, new markets to offer your services. You current eight (8) branches are open doors for you to expand your membership so that more and more Misamisnons and Zamboangenos will benefit the service only Paglaum can offer.

The year 2006 was a very favorable year for your cooperative. You won the most prestigious Coop-LGU partnership awards together with the provincial government of Misamis Occidental. This only validates your sincere and dedicated service to your members and your communities.

Allow us also to thank your cooperative for patronizing the services of MASS-SPECC being our affiliate. Please be assured that as you continue to desire for more growth, we will always be there to support you.

Let 2007 be a turning point as you reach your 100 million in total assets.

Mabuhay and Paglaum Multi- Purpose Cooperative!

SYLVIA OKINLAY-PARAGuYAMASS-SPECC CEO

MASS-SPECCCooperative Development Center


Republic of the PhilippinesDepartment of FinanceCOOPERATIVE DEVELOPMENT AuTHORITY5th Flr. Ben-Lor Bldg., 1184 Quezon Avenue, Quezon City

On behalf of the Cooperative Development Authority (CDA), I would like to extend our sincere congratulations to the Management, Staff and Members of Paglaum Multi-Purpose Cooperative (PMPC) on the occasion of your Annual General Assembly.

Empowerment of members is the key to achieving cooperative sustainability and the entire membership of PMPC of more than 15,000 has more than enough reason to be truly proud of their cooperative. Your Board of Directors, Management and Staff have resolutely demonstrated unequivocal commitment and untiring dedication to quality member services thus upholding the fundamental principles and values of genuine cooperative governance.

The CDA as your cooperative partner agency can only wish and hope that your cooperative’s operation would continue to look beyond your millions in assets and always advance the cause of touching thousands of lives, transforming communities and empowering people and foremost, extending a helping hand to our less fortunate brethren.

Cheers to the Power of Cooperation! Mabuhay ang Kooperatiba!

LECIRA V. JuAREzChairperson


I am very pleased to extend my warmest congratulations to the men and women

who have been responsible in pioneering and sustaining the cooperative movement

throughout this 15th Annual General Assembly.

As we celebrate another milestone in our coop’s history, let us count our blessings and

take a look at what we have gained in the year 2006. On January 23, 2007, our very

own cooperative together with the provincial government of Misamis Occidental,

was awarded “Most Outstanding Cop-LGU Partnership Award”. This was the highest

recognition that we have received so far. And this was made possible through our

selfless endeavors, through cooperating with one another.

God has been so good to us. We should not forget to thank Him for without Him we

can do nothing in our cooperative. To all the members of the Board of Directors and

the different committees, my sincere and highest commendation for a job well done.

Congratulations to all and MABUHAY Paglaum MPC’s 15th Annual General

Assembly!

NATIVIDAD C. JAIM

Chairperson

PAGLAUMMULTI-PURPOSE COOPERATIVE


Usa ka malampuson nga tuig ang 2006 kanatong tanan!

As we celebrate our 15th year as a cooperative, allow me to express my deepest gratitude to all the officers, staff, and members because all of you have contributed to what Paglaum is at present.

It is through your untiring effort and cooperation that we have gone this far. What we are today is also the result of our humble beginnings back in 1992.

After 15 years, we have opened eight (8) branches across Misamis Occidental, Zamboanga del Sur, and Zamboanga del Norte Provinces. These are opportunities for us to help build more empowered families and communities as we provide our members with access to micro- enterprise. Truly, our theme “Kalambuan sa Kooperatiba, Kadaugan sa matag Pamilya” reflects our passion to help bring out more united and more healthy families in Misamis and Zamboanga. We will continue to reach out and find out how we can help make lives better for our members.

The National Coop LGU Partnership Award we have received recently is a manifestation of the trust that we have earned not only from our members but also from our partner agencies in both the government and the private sector. Furthermore, it was a proof of our lively and harmonious partnership with the provincial government of Misamis Occidental. Let this be our inspiration to do more for our members and for our cooperative.

Pinaagi sa atong mga paningkamot, padayon ang pag-uswag sa atong kooperatiba ug sa matag pamilya.

GADWIN E. HANDuMONGeneral Manager

PAGLAUMMULTI-PURPOSE COOPERATIVE

1� P A G L A U M M U L T I - P U R P O S E C O O P E R A T I V E

Fourteen years ago, the cooperative movement was a struggling sector in Misamis

Occidental. Many cooperatives failed to survive. Some died a natural death. On the other hand, Plaridel was a lonely town. There were very few who ventured in business. Most of the townsfolk were either farmers or fisherfolks. But despite the miserable scenario in the cooperative movement and the loneliness of Plaridel, a group of community parents and staff from Paglaum Community Development Foundation attempted to form a cooperative by pooling a total of two thousand pesos (P2,000.00). Thus, Paglaum Multi Purpose Cooperative was created. This became the foundation’s livelihood arm. From the initial capital contributed by 35 founding members, PMPC first ventured into “palay trading”.

The coop then started to operate its savings and credit program in the municipality of Plaridel. As a new player in the

financial service industry the coop endured “birth pains”. This was so because the coop did not have much technical assistance in the operation of a savings and credit cooperative. Nevertheless, after five (5) years of its existence, it reached its first million in the middle of 1996. More millions came in after 1996. Later, PMPC felt its need to reach out to more communities. It expanded to

Calamba and Oroquieta City in the year 2000. The initial successes of these two branches led to the opening of more locations. In 2005, it opened offices in Tudela, Misamis Occidental and Dipolog, Zamboanga del Norte. Later in 2006, Pagadian City branch was opened to address the needs of more women who would like to venture into micro-finance activities. In 2007, PMPC bravely

Paglaum


“conquered” Ozamiz City and Sindangan, Zamboanga del Norte. The 35 founding members never realized that they would reach more than 15,000 members throughout the Northwestern Mindanao region and would grow their P2,000 to almost 90 Million in early 2007.

Most members are women micro-entrepreneurs. Paglaum gave them the opportunity to start their own business and help their husbands find additional income to sustain the family’s needs. Saving of these women- members are used to finance the loans of other members.

The mere palay trading has grown into what is now the Farm Level Grains Center III (FLGC). This project has expanded into trucking services, computerized mechanical drying system, and milling, serving members and communities. At present, FLGC is one of the major rice traders in the area. Because of the coop’s sound management, several donor agencies poured out their funds for Paglaum’s special projects. The Philippine Australia Community Assistance Project (PACAP) has worked with PMPC and the provincial government of Misamis Occidental in the Coconut Industry Rehabilitation Program.

The Paglaum Community Development Foundation, Inc. continues to serve the under privileged children, families, and communities. PMPC is aggressive in Child Development Program especially in Health and Nutrition where dental and medical services were conducted. PMPC

is sensitive in the continuing advocacy of the Rights of the Child, parents’ and children’s spiritual enrichment, and scholarships. PMPC supported construction of school lavatory, provided sports equipment and school supplies. The on- going health and education programs of the foundation have brought a lot of healthier and smarter children.

Moreover, PMPC has put into service various assistance and activities in partnership with the provincial government. Assistance program to persons with disability has been designed. Provision of water system facilities was funded. Dental and medical outreach missions were conducted. Upliftment of livelihood in the province is assisted through Micro Finance Program. The coop’s participation in provincial government projects is evident in the Philippines-Australia Community Assistance Program (PACAP) as Secretariat

a touching story of hope and cooperation


and as proponent in the Coconut Industry Rehabilitation and Development Program (CIRDP). It is a stakeholder and occupies the presidency in the Misamis Occidental 1st Integrated Coconut Processing Corporation and Philippines-Australia Technical Support for Agrarian Reform and Rural Development (PATSARRD). Grants and financial assistance from the Office of the Governor have been extended to PMPC for continuous implementation of developmental functions.

Paglaum’s positive image in the community has earned the trust and confidence of the members and potential members where countless awards and plaques of appreciation harvested over the years. Paglaum’s participation and involvement in different working committees and special bodies in the provincial g o v e r n m e n t has been duly r e c o g n i z e d . C o o p e r a t i v e ’ s branching out made it possible for the people to avail of quality savings and credit services.

In terms of employment, PMPC which started with six

(6) dedicated and committed e m p l o y e e s in 1992 has grown rapidly to one hundred forty-seven (147) e m p l o y e e s across the branches. The e m p l o y e e s are equipped with various educational trainings and directed with values formation.

Paglaum’s steady growth has made a significant contribution to rebuilding the image of the cooperative movement. It has been successful not only in providing economic opportunities to its members and families but most importantly in making these people responsible citizens in their communities.

Paglaum has indeed grown into a huge cooperative. But despite its growth, the cooperative has remained

true to its ideals. It continues to give HOPE to its members. It continues to make an impact

in Northwestern Mindanao, reaching out to more people and communities. And, it

desires to grow by a hundred million in 2007.

Thank you to the 35 pioneers. Thank you to their initial P2,000 capital. Now, it means

so much to every PMPC member.


2006 PERFORMANCE AT A GLANCEThe following is a graphical presentation on how we have performed at Paglaum Multi-Purpose Cooperative for 2006.

The data in 2005 is also presented for comparative purposes.

An increase of 56% or 4,471 new members was noted in 2006. The main reason for the surge in membership was the expansion efforts in Dipolog Branch. Dipolog posted the highest increase from 238 in 2005 to 2351 in 2006. All other branches have also moved up in their membership.

MEMBERSHIP

For the year 2006, savings mobilized was P20,782,541. This is P6.9M higher than the figure in 2005 which was at P13.8M. Plaridel maintains the highest deposits mobilized. All other branches have increased savings deposits.

SAVINGS

0

2000000

4000000

6000000

8000000

10000000

PLARIDEL CALAMBA OROQUIETA TUDELA DIPOLOG PAGADIAN

20052006

2,799,674

102,579

DIPOLOG

121,076

0

PAGADIAN

20,782,5411,276,3584,194,3704,055,3448,335,7192006

645,589

TUDELA

13,844,5763,224,0472,916,9116,955,4502005

TOTALOROQUIETACALAMBAPLARIDELYEAR

2,799,674

102,579

DIPOLOG

121,076

0

PAGADIAN

20,782,5411,276,3584,194,3704,055,3448,335,7192006

645,589

TUDELA

13,844,5763,224,0472,916,9116,955,4502005


0500

100015002000250030003500


20052006

2351

238

DIPOLOG

224

0

PAGADIAN

1243316762979216330402006

1267

TUDELA

80302485156324772005


2351

238

DIPOLOG

224

0

PAGADIAN

1243316762979216330402006

1267

TUDELA

80302485156324772005


There was 51.57% increase in share capital for 2006 compared to its 2005 figure. All branches have increased in capital build up. From a measly 66,695 when it started operations in 2005, Dipolog has increased this to P1.78M in 2006.

SHARES

0

2000000

4000000

6000000

8000000

10000000


20052006

1,783,341

66,695

DIPOLOG

68,092

0

PAGADIAN

21,591,7832,051,3336,163,3393,503,1188,022,5602006

1,094,126

TUDELA

14,244,5744,652,7542,464,2095,966,7872005


1,783,341

66,695

DIPOLOG

68,092

0

PAGADIAN

21,591,7832,051,3336,163,3393,503,1188,022,5602006

1,094,126

TUDELA

14,244,5744,652,7542,464,2095,966,7872005



Loans released increased from P70.1M in 2005 to P102.66M in 2006. This is a 46.39% increase. The increase was due to the increase in releases of Plaridel, Calamba, Tudela, and Dipolog branches. Dipolog Branch posted the highest increase.

LOANS RELEASED

05000000

1000000015000000

20000000

25000000

30000000


20052006

102,660,078548,44916,420,43813,690,87226,895,65719,637,78025,466,8822006

70,125,4030759,0009,093,23425,277,17514,615,87020,380,1242005

TOTALPA GADIA NDIPOLOGTUDELAOROQUIETACALAMBAPLARIDELYEAR

102,660,078548,44916,420,43813,690,87226,895,65719,637,78025,466,8822006

70,125,4030759,0009,093,23425,277,17514,615,87020,380,1242005


Total assets increased to P66M in 2006 from P50.2M in 2005. This was due to the increase of assets in Pagadian, Dipolog, Calamba, and Tudela branches. Figures here only represent assets of the cooperative’s savings and credit operation and exclude other businesses.

TOTAL ASSETS

0

5000000

10000000

15000000

20000000

25000000


20052006

66,074,7696,074,7698,190,1185,764,96315,795,25210,990,57219,552,6422006

50,217,38301,845,9954,914,44815,859,0717,373,04220,224,8272005


66,074,7696,074,7698,190,1185,764,96315,795,25210,990,57219,552,6422006

50,217,38301,845,9954,914,44815,859,0717,373,04220,224,8272005


Plaridel, Calamba, and Oroquieta branches remained profitable in 2006. However, Tudela, Dipolog, and Pagadian branches lost in their operations. Pagadian is a very new branch and is expected to earn in 2007. Dipolog and Tudela’s losses were mainly due to their expansion activities. Both branches are expected to shape up in 2007.

NET SURPLUS

-1000000

-500000

0

500000

1000000

1500000


20052006

(542,358)(201,598)(94,471)1,153,587776,6051,039,4502006

-(71,379)170,1211,301,971718,728918,7892005

PA GADIA NDIPOLOGTUDELAOROQUIETACALAMBAPLARIDELYEAR

(542,358)(201,598)(94,471)1,153,587776,6051,039,4502006

-(71,379)170,1211,301,971718,728918,7892005

PA GADIA NDIPOLOGTUDELAOROQUIETACALAMBAPLARIDELYEAR

�0 P A G L A U M M U L T I - P U R P O S E C O O P E R A T I V E

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�� P A G L A U M M U L T I - P U R P O S E C O O P E R A T I V E

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annual report 2006 page 2-25

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