"We do not negotiate with terrorists, and as far as the government is concerned, any faction of the MILF harboring terrorists is beyond this ambit of the peace process," Presidential Spokesman Ignacio Bunye told reporters yesterday.
"All salient agreements with the MILF explicitly exclude terrorists from the (peace) process. We are strictly enforcing this caveat."
Earlier, Defense Secretary Eduardo Ermita said Abu Sayyaf chieftain Khaddafi Janjalani and members of the Indonesia-based Jemaah Islamiyah terrorist network are hiding in MILF camps in the Lanao provinces.
The government is negotiating peace with the MILF.
Meanwhile, Mrs. Arroyo assured Filipino Muslims yesterday that the government is not waging a "hate campaign" against them.
"There is no hate campaign or witch-hunt directed against Muslims," she said in a statement from Malacañang. "The Muslim faith is for peace, and we respect Islam as a way of life."
Mrs. Arroyo said it is unfortunate that Islamic principles and beliefs are being twisted and exploited to justify sinister acts.
"We know that our Muslim brethren condemn terrorism as much as we Christians do," she said.
"But the problems besetting the Islamic faith in regard to terrorism are not only for Muslims to address, but also for all of us since what is at stake here is for security of the whole citizenry and the whole nation."
Mrs. Arroyo said she was happy that "more responsible" leaders of the Islamic community have positively received her appeal for understanding.
"I am glad in the growing solidarity of Muslims and Christians behind our campaign against terrorism," she said.
Mrs. Arroyo is set to meet in Malacañang with Muslim leaders led by action star Robin Padilla, who converted to Islam while serving time for illegal possession of firearms at the National Penitentiary in Muntinlupa.
On the other hand, Sen. Rodolfo Biazon asked the MILF yesterday to denounce its alleged faction which has been reported to be coddling terrorists.
"The terrorist factor relative to the MILF movement is going to make the pursuit of the peace process very difficult," he said.
"It is imperative that the MILF leadership put distinction between the mainstream that is engaged in the peace process and the alleged group coddling terrorists.
"The links of the MILF with the Jemaah Islamiyah must first be resolved with the help of two panels if we are to pursue the peace process. I would recommend that the observer teams play a major role in the resolution of terrorism that could affect the peace process."
However, the issue cannot be an obstacle to the peace talks, he added. –Marichu Villanueva, Jose Rodel Clapano