June 24, 2005 - 10:05 AM

Marchers in Manila call on President Arroyo to quit

By Stuart Grudgings

MANILA (Reuters) - Chanting "fake president," about 5,000 protesters marched in central Manila on Friday, demanding Philippine leader Gloria Macapagal Arroyo quit over allegations of wrong-doing that have rattled financial markets.

"Enough of corruption, GMA step down," read one banner, referring to Arroyo by her initials.

Nothing has been proven but Filipinos have been riveted by the war of words between Arroyo's accusers and her government, which says there is a broader plot to undermine and replace her.

The national police force was on full alert over the rally in the capital by a loose coalition of opposition politicians, leftist and Catholic groups.

But a protest planned for Saturday, organized by a retired general calling for the president to quit over allegations of fraud in last year's election, was canceled.

The national police chief, Arturo Lomibao, said officers had been ordered to show maximum tolerance but lines of riot police blocked marchers at two points on the route.

"I'm asking leaders of the protesters to always be on guard against possible infiltrators," Lomibao told reporters after inspecting one squad of riot police backed by fire trucks.

Rallies in recent weeks against Arroyo, whose ratings are at a record low since she won a fresh term in 2004 by beating movie star Fernando Poe Jr by about 3 percent of the vote, have been limited to a few thousand or few dozen marchers.

But the political opposition has been buoyed by Arroyo's silence in response to audio recordings which it says prove she cheated her way to victory.

NO MOMENTUM YET

Arroyo has drawn criticism from opponents and some allies who say she should make a definitive statement on whether it was her voice in the alleged conversation with an election official.

The president is also under fire over accusations members of her family took payoffs from illegal gambling. A Senate inquiry into those allegations resumed on Friday.

"President Arroyo never benefited from the proceeds of illegal gambling," said her spokesman, Ignacio Bunye.

A history of popular uprisings that toppled presidents in 1986 and 2001 hangs over the anti-Arroyo campaign, but political analyst Ramon Casiple said key elements of society were giving the president the benefit of the doubt.

"There is as yet no momentum because everybody I think at this time -- the middle class, business, the church etc etc -- are still giving the president time to speak," he said.

"This is a time of negotiations, of maneuvering for a better political position."

Other analysts say Filipinos are hardly shocked by claims of election cheating in one of Asia's most vibrant but unruly democracies and are weary of the disruptions of "people power" revolts and at least a dozen attempted coups since 1986.

Investors worry the political noise could paralyze Arroyo's government and drown out debate on reforms needed to cut its $70 billion in debt and tackle rampant corruption.

IDEAglobal.com said in a commentary the markets would be watching the number of protesters at Friday's rally as a gauge of "just how much support the opposition has in its present quest to get President Arroyo to resign." (With reporting by Manny Mogato)