Philippines defence minister resigns

Although Mercado had planned to resign by February 12 to run for the Senate in general elections scheduled for May, his decision to go early underscored the country’s deep political divisions.

He said he was resigning over Macapagal-Arroyo’s appointment of Lisandro Abadia as national security adviser, alleging he was tainted by a military corruption scandal four years ago.

In her first news conference since being sworn in Saturday, Macapagal-Arroyo was asked about persistent rumors of a coup, particularly involving Marine Lt. Gen. Edgardo Espinosa.

“Espinosa is an old friend of mine,” Macapagal-Arroyo told reporters on live television. “I will call him up right now and ask him.”

After an aide with a cellular phone got through to the general, she got on the line and asked: “Are you going to stage a coup against me?”

She listened carefully to his response before telling the media that he said the reports were nothing more than imagination. She was upbeat in maintaining that the anti-Estrada street protests – dubbed “people power II” after the 1986 “people power” revolution that toppled Ferdinand Marcos – had strengthened the country’s democracy.

Some have said the change of power was no boost for democracy because it came in a way not set down by the constitution. Singapore elder statesman Lee Kuan Yew said as much Monday, but added that the Philippines can expect investment to flow back into the country.

“In our constitution, people power has also been enshrined,” Macapagal-Arroyo said. “I think the bottom line is how the markets accepted it. These are indicators of trust … and that the strengthening of democracy is the prevailing position.”

Shares on the Philippine stock market rose by 2 per cent Thursday, buoyed by expectations the new government will pursue reforms to keep the country on track to economic recovery, traders said. Shares prices have soared by 20 per cent since Estrada was toppled.

Also Thursday, Justice Secretary Hernando Perez dismissed fears that Estrada would try to legally regain the presidency by arguing he did not sign a resignation and had only had stepped down temporarily.

“There is no basis for President Estrada to recover his office,” Perez said. “He was ousted from his office. He said his farewells. As far as the law is concerned, the former president is a former president.” The impeachment trial allegations that Estrada took bribes and kickbacks were transformed into a criminal investigation Monday on six possible charges. Since then, Estrada has been barred from leaving the country and had at least one of his bank accounts frozen.