ARROYO CITES DRUG LINKS TO TERRORISM

GENERAL SANTOS CITY - President Gloria Macapagal Arroyo said here yesterday
that drug money is being used to fund kidnaping for ransom and terrorism.

"Money derived from drug trafficking also lands in the hands of organized
crime gangs in kidnaping for ransom and terrorism," Mrs. Arroyo declared
before setting fire to some 5,000 marijuana plants at General Santos City
International Airport here.

The marijuana was part of P60 million worth of plants seized Monday by
elements of the National Bureau of Investigation, police, and Philippine
Air Force led by Major Chito de Guzman, in villages in Kiblawan, Davao del Sur.

The President said that Commander Flao Sloli, a B'laan bandit leader
running a sixhectare marijuana plantation here, is an enemy of the state
who must be crushed like the Abu Sayyaf terrorists.

Mrs. Arroyo arrived here to attend the 33rd foundation day celebration of
Malungon, the premier town of Sarangani. Town officials led by Mayor Teody
Padernilla and Vice Mayor Bong Constantino asked the President for P25
million to construct a new public market to replace their burned market.

Air Force chief Lt. Gen. Benjamin Defensor and NBI Director Reynaldo Wycoco
reported to the President that Sloli leads a 60-man band securing the
marijuana plantation in an area where Davao del Sur, South Cotabato, and
Sarangani provinces meet.

Intelligence reports furnished by AFP chief of staff Gen. Roy Cimatu and
PNP chief Director General Hermogenes Ebdane Jr. to the President disclosed
that a portion of earnings from drugs goes to crime syndicates and insurgents.

Mrs. Arroyo said drug pushing is a lucrative business protected or run by
crime gangs and terrorists.

The Chief Executive declared that there will be no let-up in the fight
agaionst kidnapping and terrorism, as she renewed her order to the military
to launch an all-out-war along with the police against these two menaces
that threaten national stability.

Cimatu reported to President Arroyo that proceeds from the marijuana sales
were believed used to buy firearms and ammunition.

Several months ago, Abu Sayyaf leaders Noor Mohammad Umog and Ahmad Saluan
or JR Jikiron of Basilan, formed a group called Abu Muslim to extort money
from local businessmen.

The gang set fire to two big malls here and bombed Fitmart Shopping Center,
killing 16 people and injuring 62 others.

But in the last two months, the AFP and the PNP hghave curbed the wave of
terrorism in Mindanao with informers helping authorities in conducting
operations.

With a P5 million cash reward put up by President Arroyo, lawmen captured
Umog and Saluan, killed six gang members, and captured 26 others in
separate raids here, in South Cotabato, Sultan Kudarat, Davao del Sur, and
Cotabato City.

Praise

GENERAL SANTOS INTERNATIONAL AIRPORT - President Gloria Macapagal Arroyo
yesterday praised the Philippine Air Force and the National Bureau of
Investigation for the discovery and destruction of a marijuana plantation
near the tri-boundaries of Sarangani, South Cotabato and Davao del Sur.

The President, together with Armed Forces chief of staff Gen. Roy Cimatu,
joined PAF chief Lt. Gen. Benjamin Defensor and NBI Director Reynaldo
Wycoco in the ceremonial burning of the hoard held at the grounds of this
airport yesterday morning.

The marijuana plantation was found by a joint team of PAF intelligence
operatives, Air Force 710th SPOW special operations elements, and NBI anti
narcotics agents of Sitio Basag, Bulol, Salu, Kiblawan in Davao del Sur.

The plantation was situated in the mountainous area of bordering the three
provinces that is inaccessible to all kinds of land transportation.

General Defensor said the plantation was developed, maintained, and
protected by 60 heavily armed members of the Bilaan tribal group.

Defensor identified the leader of the group as Commander Flao Saloli.
Proceeds from the plantation are used to procure firearms and ammunition as
well as to finance the activities of the Saloli group.

The PAF chief added that funds from the bandit group have been found to be
channeled to MILF units operating in the area.

The joint operation was a result of painstaking work and intelligence done
by the 300th Air Intelligence and Security Group of the PAF and the NBI
Anti Narcotics Division.