November 2, 2000, Seattle Times / AP, Philippines' embattled leader loses more political allies, by Jim Gomez,

November 2, 2000, Seattle Times / AP, Philippines' embattled leader loses more political allies, by Jim Gomez, 

MANILA, Philippines--Philippine President Joseph Estrada, embroiled in a growing political crisis over allegations he accepted millions of dollars from illegal gambling lords, offered yesterday to face a referendum on whether he should stay in office.

Estrada made the offer after a day that saw more members of his Cabinet and ruling party resign.

Trade Secretary Manuel Roxas, formerly a strong Estrada backer, announced he would step down from the Cabinet without specifying a reason. He urged that the political crisis be resolved soon. House Speaker Manuel Villar, a key Estrada ally, and 44 congressmen belonging to the ruling coalition will cross the floor to the opposition, an official said today.

Five lawmakers, including Rep. Neptali Gonzales II, the acting head of the House Committee on Justice, quit Estrada's LAMP party yesterday The committee is scheduled to begin considering an impeachment complaint against Estrada on Monday.

Vice-President Gloria Macapagal Arroyo also quit the cabinet and is leading a chorus of demands for Estrada to resign.

Villar's defection means that a resolution of impeachment now pending in the House may be accepted, paving the way for the Senate to hear the motion to remove Estrada from office.

The ruling coalition dominates the 218-member House, but only 73 votes are needed to pass the case to the Senate.

Four of Estrada's senior economic advisers also planned to resign today, officials said, in a further blow to rapidly eroding business confidence in Estrada's government.

"From here, it's a matter of time before it's all over," said Guillermo Luz, executive director of the Makati Business Club.

Allegations by a provincial governor that Estrada pocketed more than $11 million from illegal gambling operators and tobacco taxes have touched off widespread demands for his resignation or impeachment. Business confidence has plunged as a result of the political crisis, sending the peso and stock market to record lows.

The once immensely popular Estrada--a former movie star elected 28 months ago on a pro-poor platform--has denied taking "even a centavo" of illegal gambling money but has not responded more specifically to the charges. In a statement yesterday, Estrada said he would end the silence because many people had mistaken it as "an admission of guilt."

"I will prove my innocence," he said. "I guarantee the Filipino people that I will be vindicated because the truth is on my side."

Estrada did not specify how a referendum might be held.

But Gonzales, a former Estrada stalwart, said the president is widely viewed as guilty. He called the situation "irreversible."

"In the face of the public outrage and the worst economic crisis to hit our country, he can no longer effectively govern. I hope and pray that in his heart of hearts he will be able to recognize this and ... step down from the presidency to save the nation from ruin."

The governor of Ilocos Sur province, Luis Singson, touched off the crisis by testifying in early October that Estrada had asked him to coordinate the nationwide collection of payoffs from an illegal numbers game. Singson said he personally sent more than $8.6 million in payoffs and $2.8 million from provincial tobacco taxes.

Information from Reuters is included in this report.