Coup tension eases but Arroyo faces legal challenge

PHILIPPINES: Tensions within the Philippine military over a foiled coup receded on Monday but problems loomed on a new front for President Gloria Macapagal Arroyo as lawyers prepared to challenge her emergency rule in court.

Schools were closed for the day in Manila, but it was otherwise business as usual in the capital and the financial markets were calmer after being spooked on Friday by the crisis.

The peso moved 0.2 percent lower to 52.3 to the dollar in early trade on Monday and the main stock index was down 0.4 percent. Both had tumbled 1 percent on Friday.

"I am hoping that things would settle down but if it doesn't I guess we just have to work a little harder and get things clarified to the public and to the investors," Philippines Finance Secretary Margarito Teves told Reuters.

Dozens of Marines briefly defied the state of emergency on Sunday, calling for public support after the elite force's commander was removed for links with the plan to topple Arroyo. But they returned to their barracks peacefully after staging a show of support for their sacked chief in full battle gear and with armoured personnel carriers at their base in Manila.

Arroyo invoked the emergency on Friday to confront what she said was a conspiracy by political enemies, communists and "military adventurists".

Critics say her move, which allows for arrests without warrant and an extension of detention without charge, smacks of the martial law days of dictator Ferdinand Marcos, who was toppled in a "people power" uprising 20 years ago.

A lawyers' group said it would file a petition with the Supreme Court on Monday for a temporary restraining order on the national emergency, arguing that it was unconstitutional.

"We hope that the Supreme Court will act immediately on the matter to avert any escalation of the political crisis that we have now resulting from the proclamation," said Marlon Manuel, spokesman of the Alternative Law Group.

Senior military officers said Major-General Renato Miranda had been allowed a "graceful exit" as chief of the 8,000 Marines in the 117,000-member armed forces after he became the most senior officer so far to be linked to the foiled coup.

Dozens of civilians, mainly from leftist groups, gathered at the base after an appeal for public support by a respected Marine colonel loyal to Miranda. But the standoff was later resolved after a straw poll of senior commanders, and the crowd dispersed.

Miranda's dismissal followed the detention of the head of the elite Scout Rangers regiment for allegedly planning to lead troops to incite crowds at anti-Arroyo rallies.

A former police chief and leftist congressman were also detained for questioning over the weekend and government officials said more arrests were expected in coming days. Manila, Monday, Reuters