Presidential Spokesman Rigoberto Tiglao said Alvarez still enjoys the trust of President Arroyo despite the delay in the confirmation of his appointment as head of the Department of Transportation and Communications (DOTC).
"Those (rumors) are all lies. Secretary Alvarez is still with the Cabinet," Tiglao said.
Last week, rumors circulated that Alvarez had been replaced by Mass Transit and Railways Project head Willie Trinidad, who was named officer-in-charge while the DOTC chief was on a week-long trip to Bangkok, Thailand.
"We find it strange that Malacañang had to be the one to name an OIC. It should have been done by Secretary Alvarez himself, unless, of course, he was already out of the Cabinet," a DOTC source said.
However, Tiglao explained that it was SOP (standard operating procedure) for the Palace to appoint an OIC.
Alvarez has been experiencing rough sailing at the Commission on Appointment (CA) hearings, having already been bypassed thrice. The congressional body recently went on recess and is expected to resume sessions next month.
Various groups, including an association of airport operators, have opposed his confirmation, citing the issue of the Ninoy Aquino International Airport Terminal 3 project (NAIA 3).
The MIA-NAIA Association of Service Operators (MASO) accused the former Davao del Norte congressman of conflict of interest, saying he and his wife owned Wintrack Builders, a subcontractor of the Philippine International Air Terminal Co. (PIATCO), which won the project contract.
MASO said Alvarez was also head of the technical committee that studied the project.
Another Cabinet member experiencing similar rough sailing at the CA is Environment and Natural Resources Secretary Heherson Alvarez.
Tiglao said the two Cabinet men still have the backing of the President, who would shortly issue new ad interim appointments for both to remain in their posts.