Philippines open for business, says Arroyo

Early vote counting shows Arroyo's supporters hold a slim lead over backers of former President Joseph Estrada

By CNN's Maria A. Ressa

MANILA, Philippines -- Philippine President Gloria Macapagal-Arroyo has told investors her country is "open for business," after crucial mid-term elections were marred by confusion at the polls and violence on the streets.

Arroyo addressed an investors' forum organized by Credit Lyonnais Securities Asia, telling them initial election results show a vibrant democracy at work.

Unofficial preliminary counts show candidates backed by Arroyo are leading over candidates supported by her predecessor, Joseph Estrada.

She said she has received assurances from opposition leaders that "they are willing to set aside politics for the urgent imperative of economic recovery."

Arroyo defended the elections for more than 17,600 posts, calling them "free and fair."

The National Movement for Free Elections (NAMFREL), however, says it is consulting its lawyers, asking them to file criminal charges against Commission on Elections Commissioner Luzviminda Tancangco.

NAMFREL Chairman Jose Concepcion says Tancangco failed to computerize voters lists ending in confusion at the polls Monday.

Concepcion told CNN there were "significantly substantial" numbers of voters who were left off the lists and robbed of their right to vote.

Others pointed out thousands of names were repeated in different precincts, technically giving those people the right to vote several times.

The list also included many names of people who had died -- potentially allowing someone else to vote under that name.

"A woman who voted in 1998 couldn't find her name on the voters' list," said Senate President Aquilino Pimentel.

"Worse, the name of her father who had died was still on the list."

Mirroring Arroyo Estrada split

NAMFREL Secretary General Guillermo Luz blamed Tancangco and three other commissioners, pointing out the four were appointed by Estrada.

Many allege an internal rivalry in Commission on Elections (COMELEC) that mirrors the political split between Estrada and Arroyo helped prevent the computerization of voters lists which was supposed to have been in place up to 40 months ago.

Luz accused the four of colluding to prevent a quorum in en banc meetings.

"I'm a bit worried about the four," said Luz. "They can't even get the work done."

"We've been trying to fix this for two years. We can't fix this overnight," Tancangco said in her defense.

Arroyo says the Philippines is 'open for business' despite continuing violence

There were other problems. Public school teachers, who ran more than 230,000 polling stations, protested outside the Commission on Elections Wednesday, demanding their mandated allowance and highlighting irregularities.

"This Commission on Elections just presided over what could probably be the worst election in recent memory," said Raymond Villanueva, spokesman for the Alliance of Concerned Teachers.

"Hundreds of thousands of voters were not able to exercise their right to suffrage. What they gave us was the right to suffer."

Violence a problem

Violence is another continuing problem.

In General Santos City Wednesday, a candidate for mayor losing in preliminary counts rallied his supporters. They tried to storm the counting center, prompting military action.

Several people were injured as troops used truncheons to disperse the crowd.

Manila has been rocked by violence related to the elections and the arrest of Estrada in April

The fierceness of political feuds at local levels has sparked unruly protests, fuelled by candidates who refuse to concede defeat or who want to try to influence the vote count and final result.

Most of the election-related violence the past three months are blamed on warlords, who mobilize their own private armies in outlying areas.

It doesn't help that the counting is a tedious, manual process.

As each ballot box is opened, dozens of observers watch and take note to make sure accurate figures are reported. In the past, massive electoral fraud could be committed by adding or omitting zeros on tally sheets.

At this point, most of the counting remains on the local levels. From the precincts, which do the first official count, results are sent to provincial centers before going on the national tally.

On Wednesday, the Commission on Elections convened the national canvassing center -- only to close it down soon after because not one election return had been submitted.

Official results are not expected until May 28, although unofficial counts will be available a week earlier.

Arroyo says no matter the result, she is willing to work with whoever is elected.

Still, analysts point out her party's lead in the crucial race for the Senate is so small it is causing concern.

"When the Administration doesn't have a clear, working majority then it is pretty weak and subject to destabilization," Nelson Navarro told CNN.

Financial markets remain cautious. Traders predict it will remain so until official results are in.

So is the Philippines open for business? That remains to be seen.