I am going to Kabuntalan to signify that we must now refocus our energies on the fight against terrorism. I am also going to Mindanao to thank our soldiers here for their loyalty to the flag and the Constitution.

A dragnet has been put in place for the recapture of al-Ghozi and we have the full cooperation of the local government units and the communities. We also look forward to the cooperation of the MILF under its commitments to the peace process.

KABUNTALAN, Maguindanao—President Gloria Macapagal-Arroyo, the Commander in Chief, visited her troops today right at the frontline of the military’s hot pursuit of Indonesian Fathur Rohman al-Ghozi, hailing the professional soldiers "who went through their jobs quietly and without flinching."

In a statement she read at a makeshift hut in the middle of a marshland here, the President underscored the need to "refocus our energies on the fight against terrorism."

"I have also gone here to thank our soldiers for their loyalty to the flag and the Constitution," she added.

The President also pointed out that while all those who enter the military profession "know fully well the dangers and sacrifices it entailed," she was taken aback "when a group of traitors withdrew their allegiance to the Constitution."

The President was referring to the Magdalo group that staged a failed mutiny last July 27.

And it was harsher to note that the mutiny came "at a time when their comrades in arms were in the thick of the fight against terrorism," the President said.

"Our soldiers in Mindanao were never with the Magdalo group and they will never be," the President declared.

She further hailed the soldiers for doing their jobs quietly and without flinching. "And they are not noisily crying out their problem because they know we are trying our best to reform the AFP and to bring the benefits of the command down to the combat soldiers in the field," the President added.

The President also presented the Gold Cross to an Army captain and three sergeants for the apprehension of Abdulmukim Ong Edris and a companion last August 7 at Upper Bangaan, Sultan Naga Dimaporo in Lanao del Norte.

Awarded the Gold Cross were Capt. Paolo Perez and Sergeants Alexander de los Santos, Angel Abanel and Jovito de los Reyes.

ILOILO – "To say that the Oakwood incident was a spontaneous mutiny is like saying that the bombing of the World Trade Center was an accident."

This was the reaction of President Gloria Macapagal-Arroyo to claims made by Lt. Sr. Grade Antonio Trillanes of the Philippine Navy when he testified before the Feliciano Commission Wednesday that the July 27 siege at Oakwood in Makati was not planned.

"No way," the President said here. "The conspirators in the coup d’etat have no respect whatsoever for the intelligence of the Filipino people."

Mrs. Macapagal-Arroyo was here to lead the ground-breaking rites for the 40-megawatt extension project of the Panay power station being undertaken by the American power firm Mirant.

"One can only recall the antecedent days before the incident, the actuations of the leaders during the event itself, the words spoken and the means employed, as well as the evidence that is emerging, to see that this was a plain and simple attempt to overthrow the duly-constituted government by a civilian-military cabal," the President told Iloilo-based mediamen.

And with the Feliciano Commission and Senate hearings both public, Mrs. Arroyo underscored that "the truth and the lies are now surfacing for everyone to hear and to see."

"I am glad that the Feliciano Commission and the Senate decided to open hearings to the public so that everyone can see this arrogant and absurb attempt to cover up the treason at the highest levels of the body politic," the President said.

She likewise assured the people that ‘the wheels of justice will unravel and expose the full length and breadth of this conspiracy and exact full retribution from those who led it."

The International Monetary Fund (IMF) today described the Philippine economy as strong, as it projected growth in 2003 to "remain around its recent pace of 4 percent."

The IMF said the economy got a boost from the "low inflation-cum-interest rate environment" and "the steady growth in foreign remittances" which gave a big push to private consumption and investments.

In its post-program monitoring report dated August 13, the IMF projected:

-- Inflation to "remain close to 3 percent in 2003," noting receding oil prices and the absence of downward pressure on the peso.

-- The current account surplus to "narrow modestly, reflecting some deterioration in the trade balance."

-- Near-term macroeconomic conditions to be "generally favorable," despite global and domestic pressures in late 2002 and early this year.

It said liquidity in the domestic banking system "is ample, partly reflecting a steady growth in deposits and subdued lending to the private sector."

This would likely support low domestic interest rates and sustain the current expansion, it added.

The IMF also commended the government "for the timely monetary tightening and strengthening of the anti-money laundering legislation."

It further cited authorities for improvements in the state’s budgetary performance in recent months, which was backed by "a supportive external financing environment."

An important factor that caught the eye of the IMF was the government’s "commitment to reform."

It urged officials to "continue to work vigorously to mobilize the political and public support that will be needed for advancing the reform agenda, particularly during the coming pre-election period."

But the IMF also called for measures to address vulnerabilities "to safeguard the credibility of fiscal policies and ensure sustainability."

The fund expressed concern over the increase in the deficit target for 2003, the postponement of the target year for balancing the budget from 2006 to 2009.

President Gloria Macapagal-Arroyo has thanked the international community for the confidence and strong support they extended to the Philippine government during and after the short-lived military adventurism staged by some misguided junior officers of the Armed Forces of the Philippines in Makati City last July 27.

In her remarks during the thanksgiving cocktails that she tendered Wednesday night for the diplomatic community at Malacanang’s Guest House, the President said the expression of support conveyed by the international community during the crisis sent a strong signal to the mutineers and to their supporters that they expect nothing from the Filipino people and from peaceful loving nations.

"Much of our success can be credited to the clear expression of support that you and your governments gave during our hour of need, and which you continue to give. Thank you very much for that," the President said.

The President informed the diplomatic corps that 15 days after the Makati mutiny, the state of rebellion was lifted since there is no longer a need for extraordinary measures to deal with the threat.

She said several leaders of the failed coup who are still at large would be accounted for through the normal run of law, intelligence, enforcement, and investigative and judicial processes.

In the light of clear and cold evidence, the government is now unmasking the larger conspiracy to destroy our nation, the President said.

She said that through the commissions and task forces that she has created, the government is not leaving any stone unturned in unearthing the lapses of integrity, diligence and professionalism in the armed forces.

"The only way the government can attack the root of instability is through a relentless pursuit of impartial justice in the courts and a cleansing process within the uniformed service," the President said.

Saying that "the truth shall set us free," the President stressed that all allegations of graft and corruption should be brought responsively and openly before the bar of justice.

"I’m referring to both the military and civilian sectors. This is the time to put an end to coddling, looking the other way, or whitewashing investigations," the President said.

The President also said the military and civilian leaders of the Oakwood conspiracy would take the brunt of the full retribution under the law but not the ordinary soldiers who have been misled and deceived.

"We will put an end to this spectacle of having the small fry being held to account for the sins of the rich and the powerful. The worst evil comes from those who have no compunction to destroy our democratic way of life by deploying pawns for their political fortresses," the President said.

The President thanked the government of Malaysia and other countries in the Organization of Islamic Conference (OIC) for their role in the re-opening of the peace process between the government and the Moro Islamic Liberation Front (MILF).

She also added that with the help of Norway, the exploratory talks with the communist rebels would be happening soon.

The President also informed the diplomatic corps that the government will continue to fight the root cause of terrorism and recapture international terrorist Fathur Rohman al-Ghozi.

President Gloria Macapagal-Arroyo today challenged Sen. Gregorio Honasan to stop playing hide and seek and face his peers in the Senate which is now conducting an investigation on the Oakwood mutiny last July 27.

"Senator Honasan should come out and defend himself openly. It does not speak well of a senator to be hiding from justice, as well as the scrutiny of his own peers. Playing hide and seek will not help his claim to innocence," the President said in a statement she read in Romblon.

In a briefing in Malacaņang, Presidential Spokesman Ignacio Bunye said Senator Honasan would be accorded due process and would not be arrested if he comes out and files his counter affidavit in court.

"The President has always said that he will be accorded due process. Right now, there is no warrant of arrest," Bunye told Malacaņang reporters.

Bunye said Honasan would be treated with respect and accorded due process "in terms of what stage the case is right now."

"When we say he can be accorded due process, we’ll have to follow strictly the process involved in this particular case. A complaint has been filed against him. We are at that stage where he was given the right to contest the allegations by filing a counter affidavit. At this point, based on the procedures, he could not be arrested," Bunye said.

Bunye added that Honasan can freely submit his counter affidavit, contest the allegations against him, and, if the investigating body is satisfied, then they’ll probably drop the case against the senator.

"But if the investigating body is not satisfied with his counter affidavit, as per the procedures, the investigating body has to file the case in court," he said.

Bunye added he is not aware of any move to place Honasan under the custody of Senate President Franklin Drilon who is in constant communication with the senator.

President Gloria Macapagal-Arroyo will visit Brunei Darussalam next month to deliver her keynote address during the 15^th General Meeting of the Pacific Economic Cooperation Council (PECC) slated Sept. 1-3, 2003.

In a briefing, Presidential Spokesman Ignacio Bunye said the President would leave Manila on September 3.

The President will deliver her keynote address at the Istana Edinburgh on the same day.

The conference, themed "Securing the Future: A Strategic Path for the Next Decade," will be participated in by around 600 delegates from the Asia-Pacific region, including leaders from the government, business and academic fields.

The President will also meet with the members of the Filipino community in Brunei during lunch hosted by Philippine Ambassador to Brunei Virginia Benavidez.

She will then have a 20-minute one-on-one meeting with His Majesty the Sultan of Brunei before going back to Manila.

"So it would just be a short visit," Bunye said.

He said it is safe for the President to leave the country for a short while.

Presidential Spokesman Ignacio Bunye today said Lt. Senior Grade Antonio Trillanes IV, who claimed to be an anti-corruption crusader, could be guilty of tainting the same advocacy he was trying to profess.

Bunye said Trillanes has come out with all sorts of inconsistencies in his testimony before the independent fact-finding commission investigating the Oakwood mutiny last July 27.

"He is beginning to lose his cool and has come out with all sorts of inconsistencies. And although he professes to be a champion of anti-corruption, it seems that he himself may be guilty of some lapses," Bunye said during a briefing in Malacaņang.

He said one example was Trillanes’ inability to file his Statement of Assets and Liabilities (SAL) for two consecutive years.

Before the Feliciano Commission on Wednesday, Trillanes said he failed to file his SAL last year and this year because of his schooling at the University of the Philippines.

Bunye said another inconsistency was when Trillanes made a false statement in public documents by making it appear that he is the owner of certain vehicles.