This is an isolated situation that will not derail the peace process.

On one hand, our troops have been in hot pursuit of members of the Pentagon kidnap gang.

On the other hand, the ceasefire committees of both sides are also actively engaged in dialogue, so that potential hostilities will not escalate.

These demonstrate the effectiveness of our law enforcement operations and the effectiveness of the ceasefire mechanism on the ground.

I commend the AFP troops for their determination to get the Pentagon gang and for preserving the GRP-MILF ceasefire.

This is military professionalism in action.

There have been no cases of kidnapping, bank robbery and carnapping, since we have implemented the checkpoint and beat patrol system.

Incidents of terrorism have dropped to nil.

Our stepped up law enforcement measures are doing well and the Canadian travel advisory seems to be baseless and misplaced.

The President has held that the former leader should be extended humanitarian compassion, but she leaves the matter of granting him a Christmas furlough to the exclusive jurisdiction of the court.

President Gloria Macapagal-Arroyo today said that the Philippine economy is expected to register more gains in the coming year as the economies of the country’s main trading partners, particularly the United States and Japan, are now recovering.

In a radio interview this morning, the President also said that the economic gains that her administration has achieved during the past two and a half years are not accidental but the fruits of hard work.

"Itong mga bagay na ito ay hindi nangyayari bilang aksidente. Ito ay nangyayari dahil tayo ho ay kumakayod sa ating trabaho para sa ekonomiya (These things did not happen by accident. These happened because we worked hard for our economy)," the President said.

The President said that despite the downtrend in the economies in the region, the Philippines, during the third quarter, registered a 4.4 percent growth in the gross domestic product (GDP) and 5.9 percent growth in the gross national product (GNP), the highest since the Asian economic crunch in l997.

The GDP refers to the total value of goods and services produced within the country, while the GNP refers to the GDP plus the earnings from abroad of Filipino workers and companies.

The President said total local and foreign investments during the last 10 months also showed a high 22 percent growth while the inflation and interest rates remain low.

She said that with increased revenue collections by the Bureau of Customs and the Bureau of Internal Revenue, our deficit budget for the year could even be below target.

She said that during the third quarter, the region’s more developed economies, like Hong Kong, Singapore, South Korea and Taiwan, suffered negative growths.

The President said the Philippines is sixth in economic growth among the 21 economies of the Asia Pacific Economic Cooperation (APEC).

Hundreds of poor and homeless families in Smokey Mountain, Tondo, Manila found Christmas cheers early this morning after President Gloria Macapagal-Arroyo personally handed to them their housing ownership certificates, fulfilling her promise to provide them with decent homes after they were displaced from the former garbage dump.

The President, along with Manila Mayor Lito Atienza and National Housing Authority (NHA) General Manager Edgardo Pamintuan, led in the symbolic awarding of the certificates after she attended the second day of the Misa de Gallo or Simbang Gabi at the Smokey Mountain with hundreds of residents in the area.

"Matagal na matagal na, ilang taon nang hinahangad ng mga taga-Smokey Mountain na magkaroon sila ng tahanan. At sa wakas, ngayong araw na ito, nakipagmisa de gallo ako sa 800 pamilyang nakalipat dito sa kanilang mga apartments dito sa Smokey Mountain (Smokey Mountain residents have long been wanting to have their own houses here. Now, after I attended the Misa de Gallo with them, they have transferred to their apartments in Smokey Mountain)," the President later said in a radio interview.

The President did not give a speech at the awarding ceremonies because she believed that what was important was that the displaced residents could now move to their new homes minus the stench of old, and with amenities such as septic tanks, electricity and water.

The Smokey Mountain Development Project started in l995. In l998, during the last year of former President Fidel V. Ramos, 21 buildings were finished.

During the entire two years under the administration of deposed President Joseph Estrada, the project was practically frozen.

But when the President took over in early 2001, she ordered the NHA to cut all red tape, solve all legal problems, and provide the necessary funds so that the project could be speeded up and the hundreds of former residents of Smokey Mountain could be provided with decent homes.

An initial batch of 764 families who received their housing certificates could now immediately move to their permanent housing units at the Smokey Mountain Development Reclamation Project.

That is only for starters. One thousand five hundred sixty families now at the temporary housing site are also scheduled to transfer to permanent housing next year.

"Talagang nakakataba ng puso na sa wakas ay natupad din iyong kanilang minimithi (It warms the heart that finally they have realized their wish)," the President said after hearing some children say, "Wow! Ang yaman na natin (Now we are rich)"

Pamintuan said that the President has fulfilled her promise to the former residents that they would be transferred to their new homes which they can now call their own and where they can live decently.

"We are doubling our efforts to move these families as soon as possible. In fact, the project developer RII Builders has been working double time to speed up the development and repair works at other buildings for the immediate transfer of Smokey Mountain families, as well as other intended beneficiaries," Pamintuan said of the remaining 1,560 families.

Seven medium rise buildings have been allocated for the transfer of some 800 families. Each building can accommodate 120 families.

RII Builders is now completing housing related works at other 14 buildings for immediate occupancy, complete with basic amenities and services such as water, electricity, drainage and sewer lines, according to Pamintuan.

President Gloria Macapagal-Arroyo today said the Philippines stands to benefit much from its bilateral relations with the Kingdom of Bahrain.

To begin with, the President said Bahrain has donated $1 million for the Muslim communities in Mindanao, part of it will be used to finance the construction of a commercial center in Maharlika Village in Taguig, Metro Manila showcasing Muslim arts and craft.

"Bahrain is a new friend, but a very enthusiastic friend," Mrs. Macapagal-Arroyo said in a radio interview.

During her two-day state visit to Bahrain on Sunday and Monday, the President said Bahrain officials have manifested keen interest in promoting the welfare of the Filipino-Muslims.

Filipino-Muslim vendors, particularly those displaced by the government’s drive to clear Metro Manila streets and sidewalks of obstructions, as well as the crackdown on pirated tapes and compact discs, would be allowed to pursue their trade at the Muslim commercial center.

The President also said Bahrain with its expertise in Islamic banking would help rehabilitate the moribund Al-Amanah Bank in the Philippines. She added that the Prime Minister of Bahrain has directed their finance officials to help rebuild Al-Amanah Bank.

She noted that Bahrain serves as the banking center in the Middle East.

Mrs. Macapagal-Arroyo also disclosed that the government has initially allocated P10 million from the Quedan Corporation to provide access to capital for Filipino-Muslims intending to put up small businesses.

In the same interview, the President said overseas Filipino workers (OFWs) in Bahrain, estimated at about 30,000, were enjoying high standards of living.

She pointed out that Bahrain, just like Hong Kong and Singapore in Asia, is the "freest economy in the Middle East and maintains the "highest human development index in the Arab World."

The President indicated that the people of Bahrain, including their royal family, have a high regard for the OFWs.

She said employees of the royal family were mostly Filipinos.

President Gloria Macapagal-Arroyo has approved the request of Presidential Management Staff chief Secretary Silvestre C. Afable, Jr. for an indefinite leave of absence effective January 1, 2004.

Afable made the request in view of the coming peace negotiations with the Moro Islamic Liberation Front (MILF). Afable heads the negotiating panel of the government.

The peace talks between the government and the MILF are expected to start next month in Kuala Lumpur.

In the President’s visit to Tokyo last week to attend the Association of Southeast Asian Nations (ASEAN)-Japan Commemorative Summit, new Malaysian Prime Minister Abdullah Badawi reiterated to his country’s continued support for the government’s peace efforts in Mindanao.

Badawi took over as prime minister from the retired Mahathir Muhamad who initially made the commitment to the President to broker the talks with the MILF.

Malaysia was scheduled this week to send a monitoring team to Mindanao to observe the ceasefire between government troops and the MILF.

President Gloria Macapagal-Arroyo today dismissed as "isolated" the pockets of clashes in Mindanao, and ruled out the possibility that they would adversely affect the peace negotiations in the South.

"This is an isolated situation that will not derail the peace process," the President said in a radio interview.

She clarified, however, that the troops were in hot pursuit of members of the dreaded Pentagon kidnap gang operating in Southern Philippines.

The President said the ceasefire committees of both the government and the Moro Islamic Liberation Front (MILF) continue their dialogue "so that potential hostilities will not escalate."

"These demonstrate the effectiveness of our law enforcement operations and the effectiveness of the ceasefire mechanism on the ground," Mrs. Macapagal-Arroyo noted.

In a statement earlier released, the President cited the military for upholding the bilateral ceasefire while, at the same time, pressing its operations against the Pentagon kidnap gang.

"This is military professionalism in action," she stressed. "It proves that the strict enforcement of law and order can be done side by side with the peace process," she added.

The President said Bahrain would possibly join a team of foreign observers to monitor compliance to the ceasefire by both the military and the MILF.

Twenty-five congressmen and 13 governors belonging to the Nationalist People’s Coalition (NPC) today joined hands with the ruling Lakas-Christian Muslim Democrats (Lakas-CMD) in what was described as a historic alliance to support President Gloria Macapagal-Arroyo’s program of reform and reconciliation.

Speaker Jose de Venecia, Jr. president of Lakas-CMD and Congressman Alfredo Maranon of the second district of Negros Occidental, head of the NPC contingent in the House of Representatives, led the initial list of signatories to the National Coalition Agreement which aims to forge a common stand in support of the President in her vision beyond 2004.

"This is historic in the sense that for the first time we have decided to transform this Lakas-CMD-NPC coalition in Congress to a nationwide coalition in response to the President’s call for reform and reconciliation," De Venecia said.

"This will be a chapter by chapter series of agreements intended to solidify, enlarge and dramatize the importance of this coalition," he added.

The Speaker noted that since the inception of the Rainbow Coalition that included the country’s two major parties in 1992, a total of 228 vital economic and social reform laws have been passed.

The ensuing Sunshine Coalition of 2001 also involving the two major parties, he stressed, was able to push 911 bills, 17 of which had already passed the House.

De Venecia stressed that today’s event, held at Malacanang’s Rizal Hall, was only the start of a series of alliances meant to rally forces behind President Macapagal-Arroyo.

He said that in the next few days, it would be the turn of the Liberal and Nacionalista parties as well as some 3,000 Ulamas comprising the largest Muslim group to forge a coalition with Lakas-CMD.

The national coalition agreement signed by members of Lakas and NPC in certain party chapters in specific provinces, congressional districts and cities, will field a common senatorial ticket in support of the President and her running mate as well as the Sunshine coalition advocating for constitutional changes and a shift to a parliamentary system of government.

The coalition’s selection process will respect the equity of the incumbent of congressmen, governors and city mayors and other incumbent provincial and municipal officials.

Signing the agreement for NPC, among others, were chairman Faustino Dy Jr. of Isabela, president Frisco San Juan, and secretary general Joseph Felix Durano. Signing for Lakas-CMD were Secretary General Hernando Perez and Sr. Deputy Secretary General Gabriel Claudio.

President Gloria Macapagal-Arroyo today reiterated the need for national unity and reconciliation through a general amnesty that would do away with polarization of the Philippine society.

In a radio interview, the President clarified, however, that Congress must first pass a bill empowering her to grant amnesty to both leftist and rightist rebels, including misguided elements of the military.

"We need a law for that (general amnesty). The President alone cannot grant amnesty," Mrs. Macapagal-Arroyo said.

The President said she has seen during her two and a half years in office the need for institute reforms in the government systems for a more effective administration.

"I have also cited the need for unity and reconciliation. We have to heal the deep division in our society," the President said.

On Monday, Mrs. Macapagal-Arroyo told the Dubai-based Gulf News that she would submit soon to Congress a draft bill on general amnesty for groups and individuals involved in various conflicts with the government.

She identified these groups as the Muslim secessionist Moro Islamic Liberation Front, the Communist Party of the Philippines and its military arm the New People’s Army and political wing the National Democratic Front, and the so-called EDSA II and EDSA III forces.

Earlier, the President told Gulf News in Manama, Bahrain that the May 2001 siege of Malacanang and the failed military mutiny in Makati last July reflected the "deep division that we must heal."

Set aside politics and concentrate on what’s good for the country’s economy for the coming year.

This was what President Gloria Macapagal-Arroyo answered when asked by media men what her Christmas wish is during an ambush interview inside the passenger train of the Philippine National Railways on the way to the Light Rail Transit 1 Blumentritt Station in Sta. Cruz, Manila.

"My Christmas wish is for the gains that we were able to make in our economy this year be sustained into the next year. So my wish is that the confluence of economic growth will do us good in 2004," the President said.

The President said it was a difficult year for the world but the Philippines performed much better than the other economies after the country registered growths of 4.4 percent in gross domestic product and 5.9 percent in gross national product.

She explained that based on record, investments grew by 22 percent, while inflation and interest rates have stayed low. She wants to sustain that the next year.

The President told the media that the country’s economy has a potential to sustain the momentum because the United States economy is recovering after the Sept. 11, 2001 terrorist attack.

The Japanese economy is also showing positive developments while China is now buying more products from the Philippines.

President Gloria Macapagal-Arroyo graced today the test run for four new stations of Light Rail Transit 2 preparatory to formal opening of the facilities to passenger traffic.

The four stations are located on Betty Go Belmonte, Gilmore and J. Ruiz streets in Quezon City and V. Mapa street in Sta. Mesa, Manila.

Other ranking officials who attended the affair were Transportation and Communications Secretary Leandro Mendoza, Presidential Adviser on Official Development Assistance Absorption Marita Magpili-Jimenez, Metro Manila Development Authority Chairman Bayani Fernando, Transportation and Communications Undersecretary Jose L. Cortez, Jr. and LRTA Administrator Teddy Cruz.

The trial run covered the LRT stretch from Cubao, Quezon City to V. Mapa.

"This test run shows that by middle of next year, the public, specifically those residing, working or studying in the southern part of Quezon City and Marikina, as well as those in San Juan and the nearby Rizal towns such as Antipolo, Cainta and Angono, will have less travel time going to Manila," the President told reporters.

Cruz announced that the commercial run of the Korean-made trains will begin in April next year. The new coaches can accommodate a total of 1,600 passengers.

He said the trains will cut down travel time from Santolan in Pasig City to Sta. Mesa to only 20 minutes.

The stretch covers 8.76 kilometers, passing through the congested Marcos Highway, Aurora Blvd. and Ramon Magsaysay Ave.

The entire LRT Line 2 is expected to be completed in December next year, with additional stations in Pureza Street in Sta. Mesa, Legarda street in Sampaloc and Claro M. Recto Ave. in Sta. Cruz.

The President also inspected the security measures being implemented to ensure passenger safety in the trains.

She christened the rail service network as "Strong Republic Transit System (SRTS)" and urged the people to popularize the name. Mrs. Macapagal-Arroyo also boarded a PNR train in Antipolo Street, Sampaloc to Blumentritt in Sta. Cruz, Manila where she transferred to LRT Line 1 going to Pasay, then to the Metro Star Express or MRT 3 back to V. Mapa via Cubao.

After the test run, President Macapagal-Arroyo decided to walk along the one-kilometer stretch from Ramon Magsaysay Ave. from V. Mapa Station to Altura in Sta. Mesa.

The President called the PNR North Rail as the Green Line, the Southrail as the Orange Line, LRT Line 1 as the Yellow Line, MRT 3 as the Blue Line and LRT Line 2 as the Purple Line.

President Gloria Macapagal-Arroyo today paid tribute to the government partners and stakeholders who contributed immensely to the objective of providing houses to millions of homeless Filipinos during the Kabalikat sa Pabahay Awards 2003 at the Heroes Hall in Malacanang.

The awardees include developers, organized community associations, banks, and housing technology providers who actively took part in housing production for the period January 2001-October 2003.

"Today, we accord appropriate recognition to our partners and stakeholders in the housing sector who through the years have been with us in the pursuance of the country’s shelter programs," said Chairman Michael T. Defensor of the Housing and Urban Development Coordinating Council (HUDCC).

Defensor assisted the President in presenting the plaques to awardees.

"We would like to thank them for their invaluable contribution and for letting us know that the government is not alone in its fight against homelessness," Defensor added.

He said building homes for the Filipino and securing land tenure for the masses is not an easy task. "We need the combined energies and resources of government, private sector and the civil society to achieve our goal of providing decent shelter to every homeless Filipino family," he further said.

Defensor said the HUDCC initiated the Kabalikat sa Pabahay Awards in cooperation with all the key shelter agencies, namely Home Development Mutual Fund (HDMF) or Pag-IBIG, Home Guaranty Corporation (HGC), National Home Mortgage Finance Corporation (NHMFC), National Housing Authority (NHA) and Housing and Land Use Regulatory Board (HLURB).

Awardees were chosen according to the respective awards categories and criteria set by each shelter agency.

Among the awards categories are: Outstanding Developer, Distinguished Bank Partners of Government, Outstanding Community Association/CMP Originator, Outstanding Cooperative, Outstanding Housing Technology Provider and Leading Developer in Socialized Housing, Economic Housing, Open Housing and Condominium.

Four down, six to go.

National Anti Kidnapping Task Force (NAKTAF) chief Angelo Reyes today presented to President Gloria Macapagal-Arroyo captured kidnap suspect listed as No. 7 in the top ten most wanted kidnappers list.

The suspect was identified as Jose lim Arnuco, a former Army soldier who carries a P750,000 bounty on his head.

Reyes presented Arnuco to the President late this afternoon at the NAKTAF headquarters in Camp Crame.

Arnuco was reportedly captured by the police early Monday night at Barangay Seol Norte, Leon town in Iloilo.

Officials of Barangay Bakhaw, Mandurriao, Iloilo provided the information that led to Arnuco’s arrest.