MILF rebels offered to vacate some bases in Basilan 16 September to provide space for army operations against Abu Sayyaf, but talks with Manila remain on hold. NPA communist rebels attacked police station in Cantilan, Mindanao: third attack in south in 3 months. 1,000 troops deployed to Manila 21 September; military claimed escalated coup threat. Supreme Court granted lower courts broader powers to investigate extralegal killings targeting leftist activists.

Increased fighting between government and Muslim militants on Basilan and Jolo reported. Government said over 60 soldiers killed; claimed targeting Abu Sayyaf forces, but composition of fighters unclear. Manila-MILF peace talks postponed again to November. Communist National Democratic Front, political wing of New People’s Army, threatened to end long-stalled talks with government after leader Sison arrested in Netherlands on murder charges.

Ceasefire between government and Moro Islamic Liberation Front (MILF) increasingly strained by further violence. Up to 30 insurgents and 14 Marines killed in 10 July ambush by MILF forces on Basilan island; 10 were beheaded. MILF said government forces had breached ceasefire protocols, admitted involvement in ambush but denied role in beheadings. MILF announced “maximum restraint” policy to avoid escalation of clashes, launched pleas to Manila and donor governments to prevent Philippine army “punitive actions”. Giancarlo Bossi, Italian priest held hostage 1 month in Mindanao by gunmen he says were members of Abu Sayyaf, freed 19 July.

Government negotiator Silvestre Afable resigned abruptly as talks between Manila and Moro Islamic Liberation Front (MILF) due to resume after postponement during May elections. Move possibly a sign of Manila taking harder line. Government-appointed replacement, Catholic priest Eliseo Mercado, forced to resign before taking up post after MILF objections. EU team in country to provide technical assistance to end extrajudicial killings.

National legislative elections 14 May marred by fraud allegations and violence, though number of incidents lower than in 2004. 114 killed in poll-related violence since January. Polling postponed until 26 May in Lanao del Sur province after persistent armed clashes obstructed voting, while “mass fraud” under investigation in neighbouring Maguindanao. Jailed MNLF leader Nur Misuari lost bid for Sulu governorship. 8 militants with links to Abu Sayyaf surrendered in Manila; government alleged group was planning new Manila bomb attacks.

Fighting escalated between factions of MNLF rebels allied with Abu Sayyaf militants on Jolo island. 11 April rebel mortar attack on marine base sparked army retaliation against rebel bases; MNLF beheading of 6 government workers followed. Organisation of Islamic Countries, mediator of failed 1996 Manila-MNLF peace agreement, called for end to fighting ahead of scheduled July talks in Jeddah. Violence rose ahead of May polls.

Fighting between MILF rebels and government forces in North Cotabato killed over 20 and put increased stress on 6-year-old peace talks between MILF and Manila. President Arroyo called on army to work harder to maintain peace after MILF said ceasefire on verge of collapse. Organisation of Islamic Countries announced July talks between MNLF and Manila in Jeddah. MNLF leader Nur Misuari filed candidacy for governor of Sulu province. U.S. Congress launched investigation into extrajudicial killings in the Philippines, highlighted by February UN report.

Skirmishes continued between MILF rebels and troops in North Cotabato, as talks remained stalled; army claims MILF regrouping. Tripartite meeting between MNLF, government and Organisation of Islamic Countries scheduled for March in Jeddah to discuss implementation of 1996 peace deal, but prospects unclear: MNLF took government peace panel hostage for 2 days in Jolo 2 February; conditions of release not made public. UN rapporteur reported army implicated in high number of extrajudicial killings, chiefly in longstanding conflict with New People’s Army.

Boost to Manila’s fight against Abu Sayyaf militants after DNA tests confirmed death of leader Khadaffy Janjalani in September clash, while top commander killed in gunbattle 16 January. Manila reportedly intervened to end skirmishes between army and MILF rebels that killed 6 in North Cotabato end month and further jeopardised peace process.

December ASEAN summit in Cebu postponed to January 2007, reportedly amid fears of terrorist attack after botched series of raids on Abu Sayyaf strongholds end November. Government announced head of Abu Sayyaf Khaddafy Janjalani, country’s most wanted man, may have been killed in September fighting in Jolo; DNA test pending. Talks with MILF rebels remained stalled. Lawmakers allied to President Arroyo called off special legislative session due to discuss switch to parliamentary system, postponement of May 2007 elections and end to term limits, after strong opposition by Catholic Bishops group.