The Moro Islamic Liberation Front (MILF) seeks a “state within a state” in southern Mindano as a condition for ending the fighting, an idea President Benigno Aquino may try and meld with his own proposal for more autonomy at peace talks set in Kuala Lumpur on Aug. 22, Mohagher Iqbal said.

“It depends on his political will,” Iqbal said in an interview at Reuters Manila office, when asked about the possibility of a breakthrough at the talks.

“He has enough political capital and I think it can be done. There is no reason why the government cannot grant that because we are not seceding from the government.”

The MILF and government have been negotiating for more than a decade to end a conflict that dates back to the 1960s and has killed 120,000 people and displaced 2 million in poor but resource-rich southern areas.

Marvic Leonen, the government’s chief negotiator, said Manila was ready to present its proposal to the rebels, but declined to comment on the rebels’ position to suspend awarding of mining and oil and gas exploration contracts.

“I cannot make any comment because the MILF has yet to formalise that position,” Leonen told Reuters, adding he felt the MILF was sincere in seeking an end to the conflict.

Jose Layug, Energy department undersecretary, has said the government would not meet another rebel demand to suspend planned tenders of 15 oil and gas exploration contracts estimated to be worth at least $7.5 billion because it has the mandate to develop oil resources.

Aquino, the son of democracy heroine Cory Aquino, won the presidency in 2010 on a campaign to root out corruption and speed up economic reforms.

He is also pursuing separately a peace pact with Maoist rebels in the Philippines, hoping to forge deals within the first half of his single six-year term ending in June 2016.

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Officers of the Criminal Investigation and Detection Group (CIDG) Task Force Maverick have raided a business process outsourcing (BPO) firm in Davao City Thursday after receiving a tip that the BPO is involved in pornography.

Armed with a search warrant, Task Force Maverick raided Cyber City Teleservices in Sobrecary St., Barangay 15-b, Davao City and confiscated more than 600 computer units.

Authorities also recovered hundreds of sex toy brochures from the site.

“May asset kami na magpapatunay talaga na ito ‘yung ginawa nila dito na violation sa ating batas, ‘yung porno site nila. Marami ‘yung dadalhin natin dito na computer, i-imbestigahan pa natin kung ano ‘yung kasong isasampa natin,” said Senior Superintendent Pedro Cabatingan Jr., regional chief of CIDG-11.

The lawyer of Cyber City Teleservices maintained that the BPO’s operation is legal.

“This is a legitimate business in Davao City. We have nothing to hide. We go on legal process,” said Atty. Enrique Diola.

Employees of the call center showed their protest against the raid by holding a prayer rally Thursday night in front of their building.

Cyber City Teleservices, the first call center in Davao City, has 18 branches across the city.

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The United Kingdom on Wednesday warned its citizens against traveling to the Philippines saying “there is a high threat from terrorism throughout the Philippines.”

The advisory was issued following Tuesday’s explosion in Cotabato City that left one person dead and 10 others wounded.

The military said the bombing was the work of the Indonesia-based terror group Jemaah Islamiyah (JI).

Instead of singling out Cotabato and Mindanao in its advisory, the UK said “terrorist groups continue to plan attacks and have the capacity and the intent to carry out these attacks at anytime and anywhere in the country.”

“Attacks could be indiscriminate, including in places frequented by expatriates and foreign travelers. Such places could include, but are not limited to, airports, shopping malls, and places of worship,” the Foreign and Commonwealth Office (FCO) said in the advisory.

For those on essential travel, the FCO said they should especially be cautious in the Autonomous Region in Muslim Mindanao, the provinces of Sarangani, North and South Cotabato, Sultan Kudarat, Lanao del Norte, Zamboanga del Sur and Zamboanga Sibugay.

“We advise against all but essential travel to the remainder of Mindanao because of ongoing terrorist activity. There have been a number of attacks against civilian targets,” it said.

Lt. Col. Prudencio Asto, spokesperson of the 6th Infantry Division based in Maguindanao, said the attack was carried out by JI recruits, particularly those trained by Basin Usman.

Usman, who was blamed for most major bomb attacks in Mindanao in recent years, was reported killed during a US drone strike in Pakistan in January last year.

But Cynthia Guiani-Sayadi, Cotabato City administrator, said the explosion has nothing to do with terrorism based on police findings.

“The angle seen by police is personal grudge and not terrorism,” she said.

She said Jayvee Martinez, owner of gunstore where the explosion took place, has personal grudges with his relatives over property issues. He allegedly sold pieces of property of the family and deprived relatives of their share, according to the city administrator in a phone interview.

She described UK’s latest travel warning as unfair.

The bombing occurred on the second day of the Muslim fasting month of Ramadan and amid warning by authorities about heightened terrorist activities.

The warning by authorities was issued following the recovery of six homemade bombs made from mortar shells in the towns of Esperanza in Sultan Kudarat, Atu Odin Sinsuat in Maguindanao and in Kidapawan City in North Cotabato.

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President Noynoy “PNoy” Aquino’s administration urged by Former Finance Secretary Gary Teves Wednesday to ask Congress for help in raising new taxes now while he can still wager some of his political capital, as gauged by his high popularity rating.

Teves said,

“Popularity ratings do not stay at the same level too long… We might be acting too late in raising additional revenues. Why wait for 2013 if we can do it earlier?”

Teves, also a former Representative of Negros Oriental, said if President Aquino pushes for tax bills later instead of earlier, the political realities that come with the 2013 midterm elections will become constraints.

Teves added that Aquino administration’s current efforts to plug revenue loopholes and curb tax leakages may be insufficient to enable the country to weather rising prices worldwide.

“Commodity prices are up and oil prices are up. [President Aquino] has no buffer. He needs a buffer,” Teves said.

Teves also advised against the enactment of new laws that will provide more tax relief and exemptions, saying such laws deprive government of funds it needs to implement good governance programs.

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One more person has been confirmed killed in a blast that hit a commercial district in Cotabato City this afternoon, bringing the explosion’s death toll to two.

Chief Superintendent Agrimero Cruz, Philippine National Police spokesman, declined to identify the two fatalities. Earlier reports identified one of the fatalities as Jimmy Ali.

Cruz said that five people, including a seven-year-old boy, were hurt in the blast that ripped through a gun store along Parang Road at around 2 p.m.

He said that the boy was in critical condition. The four other injured victims were identified as Nancy Lagamon, Datu Ike Karudin, Delio Tumandag and Cherry Danonsiya.

Initial police reports said that the improvised bomb that exploded was planted in a parked motorcycle along road.

Police recovered parts of an 88-millimeter mortar and a Nokia 5110 cellular phone, which, probes said, could have been used as the bomb’s triggering device.

The blast happened even as the police force in the city was placed on a heightened alert due to possible attacks, which usually happen at the start of the Muslim’s observance of Ramadan.

Last week, local authorities disclosed that local groups are planning to disrupt the observance of Ramadan in the city

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First Gentleman Jose Miguel Arroyo will be summoned by Philippine Senators to appear in the next Senate Blue Ribbon Committee hearing on the alleged anomalous Philippine National Police (PNP) purchase of pre-owned choppers in 2009.

Teofisto Guingona III, chairman of the Senate Blue Ribbon Committee, said FG Arroyo must explain his involvement in the helicopter deal after Lion Air President Archibald Po identified him as the owner of the 2 second-hand helicopters that were sold as brand new to the PNP.

Arroyo’s alleged accountant Rowena del Rosario was also summon by the Senate to appear in the next hearing.

According to Po’s testimony, he sold 5 Robinson R44 Raven 1 helicopters to Arroyo for $312,450 each in 2004.

Arroyo later told Po that he wanted to sell the helicopters for $350,000 each.

“I commented that the price was on the high side of pre-owned helicopters, but he said that was the price he was willing to sell the helicopters,” Po said in his affidavit.

Po said 2 of the choppers were sold to the PNP through Manila Aerospace Products Trading Corp. He said he personally delivered the payment of $700,000 to Arroyo on April 2010.

Senate Blue Ribbon Committee already ordered Po to submit a supplemental affidavit that would further explain the specific circumstances of his transactions with Mr. Arroyo, including the so-called “Statement of Account” for Mr. Arroyo that Lion Air kept in its records.

Guingona concluded that Tuesday’s proceedings revealed that Mr. Arroyo was the real owner of the second-hand helicopters, and Lion Air was just used as a “front” for the former First Gentleman.

He said Mr. Arroyo benefitted from the sale of the second-hand helicopters to the PNP.

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