Palace: Govt-Cojuangco coco levy fund deal mere rumors

Malacañang on Saturday branded as plain “rumors” reports of a supposed compromise between the government and former Ambassador Eduardo “Danding” Cojuangco Jr. on the multi-billion-peso coconut levy funds.   Deputy presidential spokesperson Abigail Valte insisted the government under President Benigno Aquino III will “do what is right for the people” as far as the funds are concerned.   “There seems to be a lot of rumors floating around,” she said on government-run dzRB radio, referring to the claims of a compromise between the government and Cojuangco.   She noted some groups had earlier claimed the coco levy funds may be used to fund the controversial Conditional Cash Transfer (CCT) program being implemented by the Social Welfare Department.   The militant Kilusang Magbubukid ng Pilipinas (KMP) deputy secretary general Willy Marbella had been quoted as saying Cojuangco’s support for Aquino during the 2010 presidential election “definitely has political and economic quid pro quo that includes compromises and concessions over the multi-billion-peso coconut levy funds.”   He added Cojuangco could influence Malacañang in disposing the coco levy fund for purposes that would not benefit the coconut farmers.   “The government will do what is right for the people... The president will always do what is right by the people,” Valte insisted. The coco levy controversy began in the 1970s and '80s when the former President Ferdinand Marcos and the people close to him, including Danding Cojuangco, allegedly conspired to tax coconut farmers, promising them the development of the coconut industry and a share of the investments. But the money was allegedly used for personal profit particularly in the purchase of United Coconut Planters Bank (UCPB) and majority stake in San Miguel Corporation (SMC). — LBG, GMA News