Arroyo gets crucial support, consolidates grip on power
Arroyo gets crucial support, consolidates grip on power
MANILA (Reuters): New Philippine President Gloria Macapagal Arroyo consolidated her grip on power on Wednesday when a coalition of parties backing her wrested control of the House of Representatives from deposed leader Joseph Estrada's supporters.
Barely five days in office and grappling with a depleted treasury and volatile markets, Arroyo also won pledges of support from the United States and international financial institutions.
In a late night session, a pro-Arroyo coalition won control of the Lower House by electing minority leader Feliciano Belmonte, an Arroyo supporter, as new Speaker.
The House was previously controlled by parties supporting Estrada, who was ousted in a popular uprising on Saturday.
The legacy Estrada left behind is a ballooning budget deficit, a flight of foreign investment and a host of other economic headaches.
A call from Senate President Aquilino Pimentel for Estrada to be exiled to save the country from any "violent upheaval" underlined lingering concern about threats to the stability of the fledgling government.
Pimentel said he was not insinuating that Estrada would try to destabilize the new administration "but people who are his partisans could easily make him the rallying point".
"All I am saying is that if Mr Estrada is exiled into another country, he would be less of a problem to the nation," Pimentel told reporters, adding it was up to Estrada to decide which country he would like to go to.
Marine General Edgardo Espinosa voiced concern at the presence of supposed Estrada "loyalists" in the military and police forces.
"They're still capable. Estrada's men are still in place," Espinosa said.
Defense Secretary Orlando Mercado, who bolted to the Arroyo camp last weekend, said on Tuesday he saw no threat of a coup against Arroyo but the military was not taking things for granted and was checking all such reports.
Central bank governor Rafael Buenaventura denied newspaper reports Estrada had left behind a bankrupt government and that state coffers were empty.
Buenaventura told Reuters the government had 130 billion pesos (about US$2.7 billion) in the treasury.
But the government posted a budget deficit of 136.11 billion pesos last year, more than double the original target. The new government has forecast a budget deficit of 120 billion pesos for 2001.
New Finance Secretary Alberto Romulo said that in addition there were "payables" of about 70 billion pesos pending.
"Obviously if you add the list of payables that have not been paid, that would have been a bigger budget deficit," he said.
As Arroyo began grappling with the economic mess left by Estrada, U.S. President George W. Bush telephoned her and said: "If I can assist you in any way, I would like to."
Arroyo also got a boost from leaders of the International Monetary Fund and the World Bank.
IMF Managing Director Horst Koehler said the Fund was encouraged by her first policy pronouncements and said the peaceful transition in the Philippines "offers much hope".
World Bank President James Wolfensohn backed Arroyo's promise to fight poverty and restore good government and pledged the bank's "continued support and cooperation."
After days of seclusion, the Estrada family broke its silence to deny the deposed president planned to leave the country.
"We have no intention to leave," Estrada's son, Jinggoy, told reporters. He denounced as "harassment" a government order on Tuesday freezing Estrada's bank accounts.
The government has ordered Estrada not to leave the country and to answer allegations of corruption and illegal acquisition of wealth. The Ombudsman has accused Estrada of economic plunder, an offense punishable by death.
Justice Secretary Hernando Perez dealt Estrada another blow by rejecting any further claims he might have on the presidency.
Perez said Estrada's decision to leave the presidential palace, coupled with Arroyo's oath-taking and the recognition she received from the diplomatic community, "foreclosed all questions regarding the legality and constitutionality of her assumption of the presidency".
Estrada has told Congress Arroyo was only an "acting president", suggesting he might try to re-take power.
Philippine markets have retreated from the highs reached just after Estrada's downfall as the reality of the task facing Arroyo sunk in, but they are still up on last week's closes.
Shares closed up 0.19 percent on Wednesday, having at one stage been up almost two percent. The peso, which crumbled to record lows at the height of the political crisis, firmed to around 48.50 to the dollar on Wednesday.