By Manny Mogato
MANILA (Reuters) - Thousands of people rallied in Manila onFriday calling for the resignation of Philippine PresidentGloria Macapagal Arroyo over a corruption scandal.
Police said around 10,000 people, mainly left-wingactivists, students and religious groups, had taken to thestreets.
The protests, sparked by a Senate inquiry into governmentkickbacks in a telecom deal, were the biggest since tens ofthousands of people demonstrated against Arroyo in 2005 amidallegations she cheated in elections the previous year..
"We are outraged by the reports of corruption and greed ingovernment," said Maita Gomez, an activist who said she waswearing red because it was the colour of anger.
Religious leaders sang songs and read prayers from a stageset up at the front of the rally and people waved posters withthe words "Out Gloria". Some wore badges that read, "ModerateYour Greed".
Office workers in high-rise buildings threw confetti on thecrowds below.
But analysts said the absence of high profile politiciansfrom the demonstration showed the political elite did notbelieve Arroyo, who has survived three impeachment bids and atleast three coup plots, could be pushed out.
"It appears it's only the activist left that came out infull force," said Benito Lim, a professor of political scienceat the University of the Philippines.
"If the opposition cannot even come together, how can theybring down Gloria?"
In an interview with Reuters earlier this week, Arroyo saidshe would complete her final term and in a briefing withinvestors on Friday, she assured them that the latestallegations were part of the typical politicalrough-and-tumble.
"These types of charges have regularly emerged even inprevious administrations, as part of our less than impressivepolitical culture," said the former economist, whose final termruns out in 2010.
The Senate inquiry has heard renewed allegations that thecountry's former election chief demanded $130 million to brokera $329 million deal with China's ZTE to build a broadbandnetwork for government agencies. The deal was scrapped lastyear.
MERRY-GO-ROUND
But political analysts say the president's position appearssafe due to support from the military and the lower house ofCongress and the apathy of many Filipinos, who are sick of thepolitical merry-go-round in Manila.
Arroyo herself took over after former President JosephEstrada was ousted following street protests seven years ago.He was later convicted of plunder, but Arroyo granted him apardon last year.
The latest scandal has, however, unsettled some investors.The Philippine stock index bucked the regional uptrend onThursday and continued to fall on Friday, finishing down 0.9percent.
The government rejected all bids for 4-year Treasury bondsearlier this week after the renewed controversy encouragedbanks to demand a higher rate of return.
The Philippines is currently on an economic roll, withgrowth at a 31-year high and the budget deficit at a 10-yearlow, and Arroyo said the momentum would be sustained despite aslowdown in the United States through acceleratedinfrastructure spending.
(Writing by Carmel Crimmins; Editing by Raju Gopalakrishnanand Sajeev Miglani)
