Saguile, 39, a leader of the "Pentagon" kidnap-for-ransom gang here, and two of his followers were killed in a clash on Saturday with government troops in nearby Pagagawan town, Maguindanao.
The Armys 601st Brigade, which has jurisdiction here and surrounding towns, confirmed that instead of helping convince Saguile to peacefully turn himself in, dozens of MILF rebels from villages surrounding his hideout even opened fire on soldiers sent to peacefully arrest him, triggering a 30-minute running gunbattle.
Although outnumbered, the raiding team, composed of policemen and combatants of the Armys 40th Infantry Battalion, outmaneuvered the gunmen and neutralized Saguile and his two aides in the ensuing firefight.
The soldiers also recovered Saguiles M16 rifle, assorted ammunition and live M-79 grenades his other companions left as they fled towards the nearby Liguasan Marsh, a known territory of the MILF and covered by ceasefire.
The Armys 6th Infantry Division in Cotabato City has denied a report that the raiding team found P250,000 cash hidden in Saguiles hideout.
"What the soldiers found in the scene was only an M16 rifle and assorted ammunition," said Maj. Gen. Roy Kyamko, 6th IDs commander.
Muslim preachers in Shariff Aguak, capital town of Maguindanao, have called on the Provincial Peace and Order Council, led by Gov. Datu Andal Ampatuan, to initiate representations for the GRP panel to consider a possible censure by the MILF for allegedly protecting Saguile and his men.
Local residents, among them Muslim missionaries, have alleged that rebel forces in the nearby Liguasan Marsh, a 220,000 - hectare delta, also protected local kidnappers of four Chinese nationals and their Filipino interpreter in Central Mindanao last year.
North Cotabato, South Cotabato, Sultan Kudarat and Maguindanao, Liguasan Marsh became an MILF haven after the groups main enclave, Camp Abubakar, fell in a massive military offensive in mid-2000.
North Cotabato Gov. Emmanuel Piñol said Saguile was North Cotabatos most wanted man for eight years and was involved in 13 kidnapping cases. He turned to banditry when the MILF expelled him for his involvement in spate of kidnappings in North Cotabato.