Mike A goes into exile

With her credibility on the line, embattled President Arroyo announced yesterday that her controversial husband Jose Miguel Arroyo has chosen to go into foreign exile to avoid conflict of interest issues that could further undermine her troubled presidency.

But Mrs. Arroyo indicated that she would tough it out against opposition moves to oust her over allegations that she cheated in last year’s presidential election.

She told a business conference at the Manila Polo Club in Makati City she was pushing through with her reform agenda amid a looming oil crisis after urging Congress to pass tough revenue measures.

"My husband has volunteered to go abroad... to remove himself from any situation which will cast doubts on my presidency," Mrs. Arroyo said.

"For my children and granddaughters, missing their doting father and grandfather is their small contribution to rebuilding our society. As a wife, I’m grateful to my husband for his sacrifice. My family will miss him terribly, and I ask for you to help pray that we remain strong as a family," the Chief Executive said.

She did not say where the First Gentleman would be relocating or how long he would be staying abroad.

Mrs. Arroyo said her husband "will leave to remove these distractions and doubts from our people," comparing him to a "Caesar’s wife" who must not only be incorruptible but also appear to be incorruptible.

"This has been the subject of considerable pain for me and for the members of my family who’ve been subjected to these charges. To say that this goes with the territory in politics is easy, but it doesn’t stop people from being distracted from the real work required if we are to build a better nation," the President said.

She complained that her husband’s "contributions to health care and sports development have been the object of pillory, especially by my political enemies, who have been trying to distract me from fulfilling my reform agenda as president."

Mrs. Arroyo has said she follows the philosophy of her late father, President Diosdado Macapagal — that of God first, country second and family third — and that her family had made many sacrifices because they know she is effectively married to the country.

"My family knows that they must be self-effacing because the presidency is a position of great responsibility necessitating personal sacrifice," Mrs. Arroyo said. "Today my family is once again called to sacrifice our personal happiness to allow me to serve best as president of our country."

Damage Control

The move appeared designed to placate investors worried about instability and to help Mrs. Arroyo — who has made the fight against corruption a cornerstone of her presidency — win back public trust shaken to its foundations by the election scandal and allegations that her husband, son and brother-in-law took kickbacks from illegal gambling syndicates.

She is in the midst of a political crisis with an impeachment complaint against her and a House of Representatives inquiry into allegations of vote fraud in the May 2004 presidential election.

Mrs. Arroyo went on television late Monday to admit that she had improperly called an election official during the 2004 vote count. But she denied rigging the polls and said she won’t resign, instead apologizing for the lapse and appealing for unity.

A male voice that sounded like Mrs. Arroyo’s husband was also heard on the recordings discussing with the election official the plight of Robert Barbers, a pro-administration senator running for re-election.

Mike Arroyo — a lawyer who stopped practicing when his wife entered politics in 1995 to avoid conflict of interest issues — has periodically been a lightning rod for opposition attacks against the President.

First Gentleman Arroyo has been portrayed as an influence-peddler, working behind the scenes and under the President’s protection.

Media reports have alleged that the President’s husband has influenced several government transactions and appointments.

Along with the President’s brother-in-law, Negros Occidental Rep. Ignacio Arroyo, and their son, Pampanga Rep. Juan Miguel "Mikey" Arroyo, the First Gentleman has also been accused of taking payoffs from jueteng illegal lottery operators. They have rejected the allegations, which are the subject of a current Senate inquiry.

Mikey Arroyo took an indefinite leave earlier this month from his seat in the House of Representatives amid the payoffs allegations, which are being investigated by the House.

Political Liability

In 2003, Sen. Panfilo Lacson hurled the most serious allegations of wrongdoing against First Gentleman Arroyo, accusing him of laundering millions of pesos in secret local bank accounts under the alias "Jose Pidal."

Lacson showed similarities between Arroyo’s signatures and those of Jose Pidal. However, the chief of the police crime laboratory at the time, retired chief superintendent Restituto Mosqueda, certified that the Jose Pidal signatures were not consistent with the First Gentleman’s penmanship.

Arroyo’s younger brother, Ignacio, later came forward and claimed the account was his. He gave specimen signatures to prove his claim.

But he invoked his right to privacy and refused to give details, prompting the Senate to halt its inquiry on the money-laundering allegations as senators debated over whether or not Arroyo could invoke that right.

The issue resurfaced recently after self-confessed jueteng bagwoman Sandra Cam told the Senate inquiry on the jueteng bribery allegations that Mosqueda had lied and that he altered the Pidal signatures to make them consistent with Ignacio Arroyo’s handwriting. Mosqueda denied the charges.

Public trust in the President’s husband, according to pollster Social Weather Stations (SWS), averaged 22 percent from the start of the Arroyo presidency in January 2001 to last March.

The highest rating Arroyo had was 39 percent in January 2001, and from there it steadily dipped. The lowest was 16 percent in last March and in November 2003.

"Statistical analysis has consistently shown a direct correlation between public satisfaction with a president’s performance and public trust in the president’s spouse," the SWS said.

The only time Mr. Arroyo had a net plus rating in the SWS surveys was also in January 2001 at 14 percent. From there, his rating immediately took a dive. His net public-trust rating last March was negative 44 percent, the lowest so far.

A sample of 1,200 respondents was polled in the SWS surveys, which had an error margin of three percent and a 95-percent confidence level.

Pushing Forward

Mrs. Arroyo said strong economic growth, despite the political squabbling, showed the Philippines was still doing well.

"The fact that we are making this progress despite the noise of Philippine politics is clear evidence that our macroeconomic fundamentals are sound and that our foundations for recovery are solid," she said.

Michael Wootton, chairman of the British Chamber of Commerce in the Philippines, said Mrs. Arroyo’s announcement about her husband’s departure was "a remarkable statement to hear," but he didn’t think it would necessarily boost investor confidence.

Some businessmen praised Mrs. Arroyo’s action and expressed hope that the country’s attention would now turn to economic matters.

"She has done what she feels needs to be done. What we’ve got in President Arroyo is a woman who is not afraid to make tough decisions, not afraid to make tough calls," said Michael Clancy, president of the Philippine Business Leaders Forum, the organizer of the conference.

Bear Stearns investment bank said in an advisory to clients that Mrs. Arroyo "refuses to resign and will ‘tough out’ opposition demands for her resignation and/or impeachment in the coming months."

The advisory said this strategy was "workable" since the public had no appetite for another change in leadership and the opposition "has an even worse credibility problem."

Mrs. Arroyo said she would now set out to rationalize tax incentives, strengthen the banking system, ensure shareholder protection and generate more savings.