City council denies transport coop accreditation

The Baguio City Council has denied the reaccreditation request of a transport cooperative operating in the city following complaints from former members alleging gross mismanagement, lack of transparency, and violations of good governance principles.
The Cordillera Basic Sectors Transport Cooperative (CBSTC) is a transport cooperative registered in October 2018 that operates modernised public utility vehicles across the Cordillera Administrative Region and Northern Luzon. It was accredited by the City Council in 2019 and 2022 and is applying for reaccreditation this year.
However, during the regular session on October 27, 2025, former CBSTC members expressed to the City Council their opposition to the accreditation of the transport cooperative, citing mismanagement of funds, unfulfilled obligations to operators, and irregularities in the submission of required documents.
It can be recalled that accusations against the former CBSTC Chairperson and now Chief Executive Officer, of unilateral and illegal management, financial mismanagement, and violations of cooperative by-laws started in 2023. A leadership tussle ensued when Rolando Yambot, newly elected chairperson, was prevented from assuming office, and the governance of the cooperative remained under the past management.
The former members led by Yambot raised concerns that CBSTC had failed to distribute dividends properly to operators and had engaged in questionable practices regarding its franchise agreements. Yambot also revealed that since the transport Cooperative’s establishment in 2018, there had been no general assembly meetings conducted.
Yambot stated that CBSTC’s financial problems led to the repossession and foreclosure of 38 minibuses, amounting to an unpaid P69 million loan which ballooned to P114 million due to interest and nonpayment.
He further alleged that CBSTC had failed to submit financial statements since its establishment and asserted that such lapses reflected poor governance.
Former members expressed frustration over years of financial losses and lack of dividends. They claimed that while they contributed to the cooperative and participated in its operations, profits or returns never materialized.
Despite repeated complaints and attempts to raise the issue to the Cooperative Development Authority (CDA), Yambot said no corrective action had been taken. The members eventually withdrew from CBSTC and were later authorized by the Land Transportation Franchising and Regulatory Board (LTFRB) to form a new cooperative.
Citing the city’s adherence to good governance principles, Yambot argued that CBSTC should not be granted accreditation by the city government.
All 12 City Council members present voted against CBSTC’s reaccreditation, while only Councilor Fred Bagbagen voted in favor, leading to the official denial of the cooperative’s status as a CSO eligible to partner with the city government.
Bagbagen argued that the City Council’s role is limited to accrediting organizations as CSOs and does not extend to determining the legal existence or validity of a cooperative. He stressed that any legal disputes over the cooperative’s status should be addressed through proper agencies.
Meanwhile, several members stressed CBSTC had failed to meet certain accreditation requirements such as submitting a proper annual accomplishment report and maintaining a single principal office. They agreed that while the City Council has the authority to accredit CSOs, it cannot rule on the cooperative’s legal existence which is outside its jurisdiction.
The City Council also referred related unresolved issues to the Committee on Appropriations and Finance Cluster C for further study and recommendations. **Jordan G. Habbiling