Armed Forces Southern Command chief Maj. Gen. Roy Kyamko said the military retaliated by shelling rebel positions in Barangay Liningding in Munai. Two soldiers were wounded in the rebel attack.
Three days of fighting have already left seven soldiers and three MILF rebels dead since Saturday in the interior villages of Munai town, Kyamko said.
The military also reported eight soldiers wounded in the encounters.
Kyamko said the soldiers came under heavy fire, forcing the military to use 105-mm. howitzers on MILF positions.
"The shelling forced the rebels to withdraw their attacks and flee toward different directions," Kyamko said.
The MILF, however, claimed the military suffered big losses when troops penetrated Barangay Basak and ran into a flank of guerrillas, resulting in the killing of seven soldiers, including a junior officer.
Kyamko disputed the rebel figures citing reports that only eight soldiers were wounded while the rebels suffered three killed and an undetermined number of casualties.
"The cadavers of the killed enemy were brought to Barangay Basak for proper disposition while the wounded troopers were evacuated to Camp Evangelista Station Hospital for medical treatment," Kyamko said.
As this developed, Lt. Col. Daniel Lucero, Armed Forces public information chief, claimed some MILF rebels have expressed their willingness to accept the government’s offer of a permanent ceasefire.
"We still believe that there are some sectors or members of the MILF who would like to accept the government’s peace proposal. However, due to the inability of the MILF to control some of its ground forces, some (MILF units) are destroying the initiatives of both sides," Lucero said.
The MILF earlier declared a 10-day unilateral ceasefire, which ends midnight Wednesday.
MILF spokesman Eid Kabalu, however, said they are not inclined to extend the 10-day ceasefire "unless we receive reciprocal action from the government." He said the MILF had not received notice that the government intended to join the ceasefire.
The President called on the MILF to "show clean hands by purging its ranks of bombers and murderers," and vowed there can be no peace with terrorists blamed for recent bombings and raids in several areas in Mindanao.
"We cannot have a principled peace if one side is contaminated with the stigma of terrorism," Mrs. Arroyo said at the start of her eight-day visit to Mindanao.
Despite sporadic fighting, violence appears to have largely subsided during the last week. Amid signs that long-stalled peace talks with the rebels might resume, Mrs. Arroyo last week encouraged Malaysian Prime Minister Mahathir Mohamad to continue acting as the main peace broker.
Mrs. Arroyo said she is just awaiting the response of the MILF if they are ready to renounce terrorism and discard any links with terror groups. — With Mike Frialde, Edith Regalado, Bong Fabe, Perseus Echeminada