Former Defence Secretary General Fortunato Abat arrested on sedition charges after proclaiming himself leader of new revolutionary government. Intelligence officials claimed capture of Pio de Vera, alleged number 2 of radical Muslim Rajah Solaiman Movement, averted Christmas attacks in Manila. Clashes between Communist New People’s Army rebels and soldiers continued on Mindanao. Fighting continued on southwestern island of Jolo.

Violence flared as military battled on 2 fronts: against Islamic militants in Jolo and Communist rebels in central and northern areas. At least 31 killed 11-15 November in fighting between military and Abu Sayyaf Group (ASG) in southwestern island province of Sulu where military searching for ASG leader, Radullan Sahiron. Communist New People’s Army (NPA) continued assault on military. At least 30 killed in series of clashes throughout month. Military launched offensive against NPA 21 November in Barangay San Agustin, Palo Leyte, with reports of civilian casualties.

Conflict  with  Communists  intensified  after government revoked immunity for National Democratic Front (NDF) peace negotiators: roadside bomb killed 9 on Mindanao, while NDF military wing (NPA) reportedly killed 60 soldiers in Luzon and north and east Mindanao. Breakaway faction of NPA, Revolutionary Party of Workers in Mindanao, signed ceasefire agreement with government 28 October. Details emerged on “breakthrough” reached between government and Moro Islamic Liberation Front in September talks: government agreed in principle to allow southern Mindanao Muslims to write own charter and have revenue-raising powers; talks ongoing. U.S.-backed hunt for Abu Sayyaf Group (ASG) militants continued around Mindanao. ASG-suspected ambush killed 3 on Basilan island 13 October. Ahmad Santos, alleged leader of the  Rajah Soliman  group with ties to ASG and Jemaah Islamiyah, arrested.

Government and Moro Islamic Liberation Front negotiators reported breakthrough on major issue of “ancestral domain” in informal talks, which resumed after Congress dismissed impeachment calls for President Arroyo on charges of election fraud. National Democratic Front (NDF), political wing of insurgent Communist Party (CPP), denied resumption of peace talks, citing government failure to compel U.S. and EU to remove CPP-NDF (and its military arm NPA), from terrorist organisation lists: NPA resumed attacks on economic targets.

Violence continued in south: 26 wounded in 2 bomb attacks in Zamboanga City 10 August; 30 wounded in ferry bombing 28 August. Jemaah Islamiyah and Abu Sayyaf suspected. Peace negotiations between government and National Democratic Front (NDF - political arm of Communist Party) broke down 4 August as government withdrew immunity from rebel delegation and security forces threatened arrest. Allegations of corruption and fraud continued to hound President Gloria Arroyo; House of Representatives considered impeachment motion. Arroyo ally Zaldy Ampatuan elected governor of Mindanao region in 8 August poll.

Continued political turmoil and resignation of key cabinet members delayed resumption of peace talks with Communist National Democratic Front and MILF. Opposition filed impeachment complaint against President Arroyo 25 July on charges of electoral fraud, corruption and betrayal of public trust though fears of coup attempt largely dissipated. Arroyo called for political reform, resisting resignation calls from mass demonstrations. Security operations continued southern Mindanao against Abu Sayyaf group: 2 explosions 31 July injured 4. In north, soldiers clashed with communist rebels, killing 2.

Protests against President Gloria Macapagal Arroyo held throughout month amid graft accusations. To stem resignation calls, Arroyo announced departure from country of businessman husband and apologised for having spoken to election official during 2004 election claiming not intended to influence count. Leftist rebels and security forces clashed in north: 14 from Revolutionary Army of the People, breakaway faction of communist New People's Army, killed in army raid in Pampanga province 12 June - apparently sparking 14 June retaliatory ambush which killed 10 soldiers. Army announced arrest of top leftist rebel leader 29 June. Informal meetings between government and Moro Islamic Liberation Front to narrow differences on issue of ancestral land for Muslims in south ended 21 June in Kuala Lumpur; parties agreed to resume talks July. Local clan wars in south increasing strain on peace talks; at least 15, including women and children, killed in Mindanao 28 June.

Moro Islamic Liberation Front (MILF), with government representatives attending, met Mindanao 29 May in open consultation ahead of June peace talks with government in Kuala Lumpur. Communist National Democratic Front rejected ceasefire as government precondition for resumption of suspended peace talks 31 May.

Prospects improved for peaceful resolution of MILF separatist rebellion after exploratory talks with government in Malaysia. Both sides announced breakthrough on ancestral land issue though “governance” question unresolved. Talks described as very positive. Formal negotiations to begin June.

Security forces on alert for revenge attack after 15 March police storming of Manila prison left 22 dead, including 3 top Abu Sayyaf Group (ASG) commanders. ASG detainees killed 3 guards in attempted jailbreak. Several arrests made relating to Valentine’s Day bombs in Manila and 2 other cities in which Jemaah Islamiyah-trained operatives from ASG and Muslim convert group, Rajah Solaiman Movement, said to be involved. Those arrested included JI member Rohmat, alias Zaki, JI’s liaison to ASG. Zaki reported 23 Indonesians just finished training and had left for Indonesia.