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Raissa Robles

Dubious business dealings, claims of payoffs and  the unexplained wealth of husband and son, threaten  her presidency

President Gloria Macapagal-Arroyo's family is a major factor dragging down her presidency.

Allegations of money laundering, bribe taking, influence peddling and unexplained wealth are hounding Mrs Arroyo's spouse, Jose Miguel ('Big Mike'); brother-in-law Ignacio; and eldest son Juan Miguel.

Her son, known as Mikey, had a simple explanation for  his woes: 'If my mum's opponents can't hit her, they hit me.'

Mrs Arroyo's critics have found her relatives easy targets, mainly due to the paper trail they've left behind. Based on documents that Mikey, 36, filed with the government, his net worth showed a remarkable growth. Serving as confidential aide to his mum who was then a senator, he had disclosed a net worth of 50,000 pesos ($6,970) in 1993.

By 2002, after starring in his first movie flop and getting elected vice-governor of Pampanga province, his declared net worth had climbed to 5 million pesos.

Two years and six movies later, upon assuming office as congressman in July last year, his net worth had shot up to 74.4 million pesos. By then he had become nearly as rich as his parents, who had declared a conjugal net worth of 75.7 million pesos in  2003.

Mikey's net worth grew by another 2 million pesos in a matter of six months - or to 76.5 million pesos from July to December 31 last year.

Lawmaking, which paid a monthly salary of 35,000 pesos, was his main source of income.

However, a businesswoman named Sandra Cam claimed he and his lawmaker uncle, Ignacio, had been receiving regular payoffs from operators of the illegal gambling game jueteng.

She even claimed under oath that as part of the payoffs, she had personally handed him 500,000 pesos and 400,000 pesos to his uncle last December.

His uncle was placed under investigation last month by the Bureau of Internal Revenue for possible tax evasion.

Ignacio Arroyo, 54, is the second-richest lawmaker with a declared net worth of 291.6 million pesos. Tax examiners reportedly asked him to explain why his annual tax payments have hovered under 20,000 pesos when in 2003, he had claimed owning bank deposits worth 270 million pesos under the fictitious name 'Jose Pidal'.

The opposition had accused him of covering up for the president's spouse, who was earlier pinpointed as the alleged owner.

Of the tax probe on her brother-in-law, presidential spokesman Ignacio Bunye said it showed 'the president is consistent with her stand that there are no sacred cows in her administration'.

The charges levelled against the president's spouse, however, have proven to be the most damaging.

Former trade secretary Juan Santos said he and nine other key ministers had told Mrs Arroyo to make her husband 'disappear' if she wanted to repair her credibility.

Mr Santos, who recently resigned, with the nine others,  told the South China Morning Post that two prominent Hong Kong bankers had told him they were worried whether the president could still make tough decisions given the scandals swirling around her.

'The tough decisions we are talking about are: the departure of the First Gentleman, shortly followed by the people who are perceived to have been associated with him,' Mr Santos said. He said there was widespread perception among businessmen that Mr Arroyo 'might be involved in things that are not exactly aboveboard'.

Early this month, Mr Arroyo flew to California after a brief stay in Hong Kong 'to remove himself from any situation which will cast doubt on my presidency', Mrs Arroyo announced.



Family members drag Arroyo down