MANILA. Not only administration congressmen but also at least one local government executive were given money after attending separate meetings with President Macapagal-Arroyo in Malacañang on Thursday.

Pampanga Gov. Eddie Panlilio, a Catholic priest, yesterday said a Palace staff member dressed in a barong tagalog handed him a brown paper gift bag containing P500,000 as he was walking toward his car.

Panlilio said the bag, which had a handle, was stuffed with crisp P1,000 bills in five bundles, each amounting to P100,000.

He said the man told him he could use the money to help in the barangay elections, and that he accepted it after being told that he could also use it for "barangay projects."

Panlilio agreed to confirm that money had changed hands after the meeting "because as a priest and a public officer, I should not lie."

"I believe that since the money came from Malacañang, I also believe it is public money. So I should be accountable for it and transparent about it," he said.

The President called the meeting with around 200 officers and members of the Union of Local Authorities of the Philippines (Ulap), the umbrella organization of governors,mayors and other local officials, ostensibly to discuss the progress of infrastructure projects in the "super regions."

It was held hours after a breakfast meeting between Ms Arroyo and around 190 congressmen, where envelopes containing amounts of between P200,000 and P500,000 were reportedly distributed. (Malacañang and some congressmen denied this, but Cebu Rep. Antonio Cuenco confirmed he was given P200,000 as "Christmas gift.")
A local official tipped the Inquirer that envelopes containing cash were also given out during the President's meeting with Ulap members.

The source, who asked not to be named because of the sensitive nature of the subject, said the envelopes contained amounts ranging from P20,000 to P500,000 and were distributed so mayors and governors would support the dismissal of the supposedly weak impeachment complaint lodged against Ms Arroyo.

The complaint, filed by private lawyer Roel Pulido, was referred to the House committee on justice late on Thursday.

"They looked funny because when they came out of Malacañang, they carried identical paper bags containing the money. They were like Japanese tourists who came out of a store with similar shopping bags," the source said.

It was earlier reported that 48 of the 81 governors and an undetermined number of mayors attended the meeting.

The source said P500,000 was apparently for the governors, and amounts of P20,000, P30,000, P50,000, P100,000, P200,000, P300,000 and P500,000 were given to city and municipal mayors.

According to the source, the amount depended on the size of the municipality: "If you are from a small municipality, you got P20,000. Big cities received P100,000 to P300,000, while chartered cities and provinces received P500,000."

The source also said that apart from Ms Arroyo, Executive Secretary Eduardo Ermita and Undersecretary Tonypet Albano of the Office of Coalition Affairs were present at the meeting with Ulap.

But Ms Arroyo and Ermita were not present when the envelopes were distributed by Remedios "Medy" Poblador of the Presidential Legislative Liaison Office and other functionaries, the source said.

Panlilio said that before he left the meeting of the local officials, he learned from other governors that Ms Arroyo would be "giving help" for the barangay elections.

"May ibibigay daw pagkatapos ng meeting," he said, adding:

"Jonjon (Bulacan Gov. Joselito Mendoza) and I discussed whether to accept the money or not. Jonjon said he would accept it if I decide to accept it."

But it's apparently the priest's word against his colleagues and other local government officials.

Mendoza, a member of Ms Arroyo's party, the Kabalikat ng Malayang Pilipino (Kampi), said he had not received any money from any staff member of Malacañang.

Mendoza said in a phone interview that he came to the meeting because he had something to discuss with Ms Arroyo -- the purported refusal of Interior Secretary Ronaldo Puno to replace Senior Supt. Asher Dolina as Bulacan police director.

There was only silence from other governors.

Repeated calls by the Inquirer to Eastern Samar Gov. Ben Evardone (secretary general of the League of Provinces of the Philippines or LPP), Misamis Occidental Gov. Loreto Ocampos (the LPP national president), and Bohol Gov. Erico Aumentado, (past national president of Ulap), went for naught.

There was likewise no response from the governors of the Southern Luzon provinces -- Vilma Santos-Recto (Batangas), Erineo "Ayong" Maliksi (Cavite), Teresita Lazaro (Laguna), and Arnel Panaligan (Oriental Mindoro) -- despite repeated calls and text messages.

Evardone had earlier told reporters that if the Pulido impeachment complaint had no basis, the governors could "appeal" to congressmen to junk it.

The complaint was purportedly meant to protect the President from another and stronger impeachment complaint for one year.

Mayor Ramon Guico of Binalonan, Pangasinan, president of Ulap and of the League of Municipalities of the Philippines, and a cousin of Ms Arroyo, also denied having received money from Malacañang on Thursday.

"Wala sa mayors. Di kilala ang mayors (There was nothing for mayors. Mayors are not well-known)," Guico said.

He said he could not speak for the governors present because some of them were "suddenly pulled out of the Heroes Hall" in Malacañang by Camarines Sur Gov. Luis Raymund "Lray" Villafuerte.

He said he was informed that the governors went to the Guest House: "They went out before lunch and returned one by one later."

Guico said members of the Ulap national executive board and Ulap as an organization did not receive money or financial support from Malacañang on Thursday.

He said the mayors and governors gathered at the Heroes Hall for the oathtaking of Ulap officers.

Asked to comment, Governor Villafuerte said in a text message: "I attended the governors' meeting as chair of the League of Provinces and as Regional Development Council chair of Bicol. There was no cash gift given."

Mandaue Vice Mayor Carlo Pontico Fortuna, past national secretary general of Ulap, likewise denied that money was distributed to them on Thursday.

Said Fortuna: "[The congressmen] are fortunate because they were given [cash gifts].

We did not receive any. We were there because of the turnover [of responsibilities to the new set of Ulap officers] and secondly, for the terminal meeting of the outgoing Ulap officials. The mayors and the governors were also being called. And I suppose they were there because they were asked to listen to the developments in the 'super region' program."

Manapla Mayor Manuel M. Escalante III, president of the Negros Occidental chapter of the League of Municipalities of the Philippines, said he attended the meeting but was not given any money, nor was he aware that others were given money.