In his resignation letter dated July 29, Corpus said it was best for him to step down in the interest of military unity and stability.
"In chess, when a queen is beleaguered, it is sometimes necessary to sacrifice a knight to save the game. I feel that the restiveness will not calm down with my continued presence," Corpus said in his single-page letter submitted to the President.
He warned, however, that "the current political crisis is far from finished. There is still deep restiveness in the officers corps."
The 58-year-old Corpus denied allegations that he had a hand in the Davao bombings last March and April that left at least 38 people dead and over a hundred others wounded, saying the accusations were "without basis."
"The putschists are asking for my resignation. Although I can honestly say that their accusation that I had a hand in the Davao bombing is without basis, I think that it is best for all that I get out of the picture," he said.
Despite his resignation, Corpus will still be investigated regarding the allegations of the mutineers, Malacañang said.
National Security Adviser Roilo Golez, however, denied that Corpus resignation was related to the weekend mutiny or in response to the soldiers demands.
In a television interview, Golez said the departure of Corpus had been considered for at least a month before last Sundays mutiny.
Sources told The STAR Corpus had tendered his resignation before leaving Monday night to attend a forum on intelligence gathering in Seoul, South Korea.
Although Corpus was over the mandatory retirement age of 56 for military officers, there was a special arrangement for him to retire on Oct. 4, 2004 when he turns 60.
Presidential Spokesman Ignacio Bunye said Mrs. Arroyo had accepted Corpus resignation as intelligence chief but would retain him in the military.
"The President made clear, however, that she is not accepting General Corpus offer to retire from the service. The President described General Corpus as a noble officer," Bunye said.
Presidential Chief of Staff Rigoberto Tiglao said the same thing. Tiglao said Mrs. Arroyo was "touched by the nobility of General Corpus principled stand" when he offered his resignation.
"The President accepted his resignation only as ISAFP chief but not from the military because he (Corpus) is considered valuable to the Armed Forces," Tiglao said.
The mutineers particularly accused Corpus of incompetence and involvement in the recent deadly bombings in Davao City to justify more military aid from the United States.
Aside from Corpus, the mutineers, who are now being detained and interrogated at the ISAFP headquarters in Camp Aguinaldo, also demanded the resignation of Defense Secretary Angelo Reyes and Philippine National Police (PNP) chief Director General Hermogenes Ebdane Jr.
The mutineers claimed that Corpus was in Davao City when a bomb exploded in a crowded wharf, killing 16 people in April. They said Corpus was either involved in the attack or was so incompetent he failed to detect and foil the attack.
Armed Forces chief Gen. Narciso Abaya said Corpus will likely handle another job dealing with civil-military operations (CMOs).
"He is resigning as ISAFP chief. He is not resigning from the service. We could make use of his expertise in other fields," Abaya said.
Abaya said Corpus will be an asset in civil-military operations. "He can coordinate the right hand effort and the left hand effort of the government. Like earlier, the President had designated him as in charge of the distance learning which is part of the left hand effort in our internal security operations," he said.
Corpus was a promising Army lieutenant in the 1970s when he defected to the communist New Peoples Army (NPA) and eventually became one of its leaders.
He returned to the government fold more than a decade later, was detained for years at the ISAFP compound before he was released after the February 1986 EDSA people power revolt that installed President Corazon Aquino into power.
Corpus was reinstated in the Armed Forces of the Philippines and worked as chief of Combat Research Office of the Deputy Chief of Staff of the AFP. Corpus was later appointed by Mrs. Arroyo to a sensitive military post to head the ISAFP.
With the mutiny staged by junior officers and servicemen demanding the resignation of government and military officials, Corpus ended up being the first official to step down following Sundays drama.
For his part, Abaya said Corpus resignation as the militarys chief spook will be a big loss to the ISAFP. "There was no pressure coming from anybody (for Corpus to resign)," he said.
As to who will replace Corpus as ISAFP chief, Abaya said they have a list of possible candidates.
"We have not come out with the final recommendation but we are studying several possible replacements. To divulge (the names of those recommended) would be still premature," Abaya said. - With reports from Mike Frialde, Christina Mendez, AP, AFP, Reuters