This was the claim yesterday of opposition Sen. Panfilo Lacson who said President Arroyos husband, Miguel "Mike" Arroyo, presides over a "Department of the Underground" which he described as "the most inventive, creative, and innovative agency of grease, graft and corruption."
At Malacañang, Mrs. Arroyos spokesman said she stands by her husband in the face of these accusations and that Mr. Arroyo is willing to face his accusers in the Senate or other investigating bodies.
"As she said, the First Gentleman has repeatedly stressed that he has nothing to hide and that he is willing to face his accuser whether in the Senate or whatever forum," Presidential Spokesman Rigoberto Tiglao said.
In a privilege speech yesterday, Lacson said: "Its (Department of the Underground or DUs) expertise is to broker crooked deals and win them. Its excellence is to assign cronies to positions of power and make money out of them."
He claimed that Arroyo used P250 million of Philippine Charity Sweepstakes Office (PCSO) funds to ensure the victory of Mrs. Arroyos friends in the recent elections. The money went into the pockets of broadcasters who were tasked to sing hosannas to the Arroyo administration, according to Lacson.
He said that it is not the payola recipients but a presidential husband "who has gone overboard" that is the issue.
"He has abused his affinity with the President to milk agencies of government for his selfish interests and those of his ilk. This must be stopped," Lacson, himself facing varied charges before a Senate investigating body, said.
Lawyer Patricia Bunye, the official spokeswoman for Mr. Arroyo, reiterated yesterday the categorical denial of Attorney Arroyo on the alleged dipping into PCSO funds and heading the so-called DU, and that he was mulling to file legal action.
"We plan to take legal actions against the damaging and false accusations against the First Gentleman," Bunye said, adding that the senators principal witness, one Robert Rivero, "conveniently happens to be married to a member of (Lacsons) staff."
Lacson claimed that Mike Arroyo headed the clandestine department with the assistance of Press Undersecretary Roberto Capco, Ito Los Baños, Jack Arroyo, Manny Estrella, Resty de Quiros and several other people he did not identify.
Capco denied the allegations. "As press undersecretary, I oversee the communication plans of the national government; I dont corrupt the media," he said.
While Lacson did not name in the privilege speech the friends of the First Gentleman who allegedly benefited from the PCSO funds, he and his fellow opposition senators did so in Resolution No. 161 that called for an investigation of the alleged misuse of PCSO funds.
Those named in the resolution, citing a news report, were Senators Juan Flavier and Joker Arroyo, and losing administration candidates Roberto Pagdanganan and Ernesto Herrera.
The resolution was referred to the Senate committee on electoral reforms headed by Sen. Edgardo Angara.
The resolution and Lacsons privilege speech drew heated reaction from Senator Arroyo who challenged the Senate opposition to make an open declaration of war against the majority.
"Are we now declaring an open war? If it were so, I would not retreat. You would be in for a good fight!" he exclaimed.
Arroyo said he welcomed the investigation of the PCSO as demanded by the opposition because it would show that there was a conspiracy by some Senate personnel against senators elected by the people.
Yesterdays emotional outbursts came just a few days after the majority and the minority in the chamber showed exemplary cooperation by unanimously passing the newly signed Anti-Money Laundering Act of 2001. That experience had even made neophyte Sen. Francis Pangilinan to state that he would now favor giving the finance subcommittee chairmanship to the minority.
Arroyo said that he had no brief for the First Gentleman, as he urged the minority to go ahead and run after Mike Arroyo instead of skirting around the issue and drag other personalities.
"I have asked Mike Arroyo to reply to the allegation of seven senators that he profited from a franchise deal. We will start hearing that case as soon as the investigation on illegal drugs ends," added Arroyo, chairman of the Senate Blue Ribbon Committee.
Arroyo said that the inclusion of Jack Arroyo, his nephew, in Lacsons list of men assisting Mike Arroyos DU was "cruel."
"Throughout the campaign, Jack Arroyo was in the United States because his wife was suffering from terminal cancer. And he was supposed to have assisted the government of the underground? How cruel can some persons be!" he exclaimed.
He also identified Manny Estrella as the brother of former Health Secretary Felipe Estrella "who resigned from the Estrada Cabinet after one month because he did not want to be dictated upon."
But before emotions would further get out of hand, Senate President Franklin Drilon called for a suspension of session and prevailed upon the opposition not to ask Arroyo any question.
Senate Minority Leader Aquilino Pimentel Jr. said they are acceding to the request "in the spirit of Christmas and to prevent some members from suffering any heart attack."
Meanwhile, Sen. Luisa Ejercito Estrada said that Mr. Arroyo should welcome the Senate investigation. She recalled that when she was still first lady, she also submitted herself to investigation by the Blue Ribbon committee over the alleged misuse of PCSO funds.
"The investigation will give everyone the opportunity to present his side," she said.
That investigation, headed by Senator Pimentel, found no evidence showing misuse of PCSO funds and absolved her and her son, then San Juan Mayor Jinggoy Estrada, of any anomaly. With Marichu Villanueva