The President, her spokesman said, is bent on unmasking Pacifico Marcelo, who has formally accused her of demanding majority control of his two companies in exchange for recalling her veto of a bill granting a telecommunications franchise to his firms.
Presidential Spokesman Rigoberto Tiglao, however, expressed doubts over the legality of a Senate plan to summon the President to the chambers inquiry into the controversy.
Tiglao said the Palace cannot allow harassment to affect the work of the President.
Malacañang said Marcelo has renounced his Filipino citizenship and succeeded in hoodwinking Congress into granting him a franchise for his two firms, in violation of the countrys laws.
"The President is vindicated by the very disclosure of these facts themselves, that she was right in vetoing what would have been a crony enterprise," Tiglao said.
He dismissed as "total fabrications" Marcelos account of his meeting with the President at Malacañang last August.
Tiglao also said Mrs. Arroyo had nothing to do with the attempt of immigration agents to arrest Marcelo.
Meanwhile, opposition Sen. Teresa Aquino-Oreta justified yesterday her move shielding Marcelo from immigration agents out to arrest him, saying she was merely protecting his right to due process.
Oreta branded the immigration agents attempt to arrest Marcelo at the Senate as "an affront to the Senate as a co-equal branch of go-vernment."
She clarified that she took Marcelo to her home upon the request of the Senate sergeant-at-arms, Gen. Leonardo Lopez, to avoid a possible violent confrontation between Marcelos bodyguards and the Immigration agents.
Oreta said she was ready to face any charges arising from her act Monday night.
"I believe that what I did was right. I am disappointed, saddened by the decision of the Senate president," Oreta said.
She was referring to an order by Senate President Franklin Drilon to release Marcelo from Senate custody, in effect throwing him to the waiting arms of the immigration agents.
"The repeated attempts by the BI (Bureau of Immigration) to spirit away Mr. Marcelo while inside the Senate premises showed sheer disrespect for the chamber as an institution," Oreta said, adding "it was the height of sycophancy on the part of the BI leadership to flaunt its contempt of the Senate just as these officials would worm their way to the good graces of Malacañang."
Marcelo has accused President Arroyo of trying to take control of the Philippine Communications and Clearinghouse Inc. (PCCI) in exchange for enacting the firms franchise bill.
Marcelo was presiding over a press conference at the Senate media office when the immigration agents tried to arrest him over a question of his citizenship.
Oreta, along with opposition Senators Panfilo Lacson, Gregorio Honasan, Vicente Sotto III and Senate Minority Leader Aquilino Pimentel Jr. came to Marcelos rescue, calling the immigration agents move as a form of harassment and obstruction of justice.
Lacson said warrantless arrest was not applicable to Marcelos case, adding there was no investigation and court order on the matter.
Marcelo was allowed to stay under the custody of the Senate but Drilon ordered Lopez to take him out after the senators failed to approve a resolution filed by Pimentel seeking protective custody of the witness.
Drilons order paved the way for the immigration agents to arrest Marcelo, but Oreta intervened.
She said since the Immigration agents failed to present a valid warrant of arrest, she acceded to General Lopezs request to escort Marcelo out of the Senate because I felt that his safety and rights had to be protected.
"If we do not act fast and protect the rights of people who want to testify before the Senate, how can we encourage more witnesses to help uncover the truth in our inquiries? Who else will come forward to testify on anything if our citizens feel that the Senate is inutile and cannot protect them within its premises?" Oreta said in a statement.
In a statement, Pichay called on the political opposition not to allow itself to be used by Marcelo to get back at Mrs. Arroyo for having vetoed the two franchise bills proposed by the businessman.
"The franchises for Marcelos two firms were vetoed by the President after concerned government agencies warned that a privately owned clearing house for the cellular phone industry would be inimical to Filipino consumers," Pichay said.
"What is apparent is that Mr. Marcelo, apparently because of pressure from his erstwhile investors in the clearing house operation, is waging a personal vendetta against the President for having vetoed his two franchise bills. The President should not be faulted for having stood firm, despite Mr. Marcelos threats and blandishment," Pichay said.
The Mindanao lawmaker also termed as "fantastic and outright falsehood" Marcelos claim that Mrs. Arroyo had tried to grab majority stake in his proposed clearing house.
Pichay noted that the PCCI had "minuscule" capital base, no track record and an operational concept that was bound to have been opposed at every turn by the leading cellular phone companies.
"The President only granted Mr. Marcelos request for an audience to explain why she had to veto the clearing house franchise. Perhaps, she was concerned that if she did not, Mr. Marcelo may bad-mouth the Philippines to foreign investors," Pichay said.
On the other hand, former Sen. Juan Ponce Enrile said Mrs. Arroyo may face possible impeachment if it was proven she asked for majority control of the PCCI.
"Any violation of her oath of office to do justice to every man and to also faithfully execute the laws of the country is an impeachable offense," Enrile said in a statement.
For its part, the opposition Partido ng Masang Pilpino expressed concern that the government may be setting the stage for the re-emergence of strong-arm rule with Mondays attempt to arrest Marcelo without any warrant. With Aurea Calica