Abu Sayyaf spokesman Abu Asmad Salayuddi, alias Abu Sabaya, made the announcement over a Zamboanga City radio station after the hostage’s mother Carol Schilling aired a last-minute appeal.
"The execution is suspended," Sabaya said in a satellite phone interview with dxRZ. "I’m giving Mrs. Schilling the chance to appeal to President Arroyo."
Carol Schilling of Oakland, California arrived in Manila at dawn yesterday in a last-ditch appeal for the life of her son, whom the Abu Sayyaf threatened to behead yesterday as a "birthday gift" to President Arroyo. The President turned 54 yesterday.
In an earlier appeal aired over the radio, Mrs. Schilling, a 51-year-old YMCA accountant, said she was only a woman of "modest means" and begged the bandits to release her son.
"We call him our gentle giant and we want his great big bear hug. Please release my only son," she said hours before the bandit group called off Schilling’s execution.
"This is the only gift we can give to Mrs. Schilling and President Gloria Macapagal-Arroyo on her birthday," Sabaya said.
"She (Mrs. Arroyo) is lucky we didn’t give her a gift of two heads like we did on (President Joseph Estrada’s) birthday," Sabaya added, referring to the beheadings of two male teachers last year to spite Estrada on his 63rd birthday on April 19.
Mrs. Arroyo later designated Defense Secretary Angelo Reyes as the lead government official to deal with Mrs. Schilling.
The President, during a Palace function also demanded Schilling’s "immediate and unconditional release" while Executive Secretary Renato de Villa reiterated the government’s policy of non-negotiation with terrorist groups.
The US Embassy, in a statement, said it welcomes the news that the bandits had suspended their threat to execute Schilling.
"This was the right decision. We urge his prompt release so he can go home with his mother and be with his family," the embassy said in its one-paragraph statement.
The US government, like the Philippines, has refused to negotiate with Abu Sayyaf bandits who have repeatedly changed various demands except for a $10-million ransom demand for Schilling.
"I want to give these last words to GMA (President Arroyo) and the US government. First, Happy Birthday, GMA. Second, welcome to the Philippines, Mrs. Schilling. And third, if the US government has its policy, we also have our policy," Sabaya said.
But Sabaya also demanded the military stopped a looming offensive that is being prepared against them on the islands of Sulu and Basilan.
"One thing I want to request: If they want to settle this problem, just back off the military operations now. Otherwise, we might be provoked to execute Jeffrey Schilling," Sabaya added.
The military has been preparing since Monday an offensive under Task Force "Trident II" to rescue Schilling and neutralize the bandit group.
Schilling, a Muslim convert, has been the group’s hostage since Aug. 31 last year, after he purposely visited an Abu Sayyaf camp with his Filipina wife, Ivy Osana, Sabaya’s cousin.
Schilling was taken hostage around the time the Abu Sayyaf was negotiating for the release of several hostages of various nationalities who were abducted from Sipadan island in Malaysia.
Shortly after the alleged payment of a $24-million ransom, the Abu Sayyaf proudly brandished before television cameras new high-powered rifles and other weapons.
In Davao City, Armed Forces Southern Command (Southcom) chief Maj. Gen. Gregorio Camiling admitted the group’s financial resources have helped them elude pursuing government troops.
"Our operations have been ongoing and we’ve never stopped. It’s just that the Abu Sayyaf has the money for their operations," Camiling said, adding that the bandits usually bribe and threaten poor villagers against divulging their whereabouts.
"(But) more soldiers will be deployed in the area. The additional forces will be sent in soon," Camiling said.
Camp Aguinaldo officials confirmed that three veteran Army and Marine battalions will be deployed to Sulu to reinforce troops that were sent earlier this week to comply with Mrs. Arroyo’s order to "annihilate" the bandit group.
Armed Forces spokesman Brig. Gen. Edilberto Adan said the troops would be composed of two battalions of elite Army Scout Rangers and one battalion of Marines.
"Additional troops coming from the Air Force and Navy are also expected to arrive in Sulu and Basilan," Adan added.
Already, the 103rd Brigade has been stationed in Basilan while the 104th Brigade is in Jolo, Sulu. Both islands are known strongholds of the bandit group.
About 1,000 government troopers early yesterday raided an Abu Sayyaf hideout near Patikul town in Sulu but only found pots and pans, Southcom officials said.
Hours earlier, Sulu provincial police chief Superintendent Candido Casimiro said intelligence indicated Schilling was held hostage in that camp. However, government troops have yet to encounter the bandits.
Meanwhile, hundreds of soldiers swarmed Sulu’s capital of Jolo and guarded churches in groups of 10 while officials warned foreigners to stay out of the countryside for fear of more kidnappings.
Soldiers provided security escorts to all priests in the town on rumors that the bandits plan to kidnap religious figures to bolster their negotiating position.  With Edith Regalado, Marichu Villanueva, Aurea Calica, Rey Arquiza