The first family of the Philippines is embroiled in an unfolding scandal involving allegations of money laundering, steamy affairs and shady deals. At the centre of the political soap opera, is the personal assistant of the president's husband. From her Vancouver hideout, she says... "I am not his mistress or his dummy"

By Asian Pacific News Services

Victoria Toh is having trouble sleeping. She is devastated, humiliated and is suffering from stress, say her lawyers.

But the Filipino-Chinese businesswoman, who is a confidante to the first family of the Philippines, has no intention to let those who have made her life a nightmare get away with destroying her family honour.

Holed up in Vancouver to avoid the media frenzy in Manila that is being fuelled by the unfolding scandal involving President Gloria Arroyo's husband, Victoria Toh or Vicky has begun lashing back at her accusers.

The cross-Pacific mud-slinging has spiced up Manila s latest political soap opera which has many overseas Filipinos wondering if President Arroyo is going to go the way of her predecessor the hard drinking, womanising Joseph Estrada.

There already has been calls for the first couple to split up to prevent further tainting of the presidency. This week, Victoria Toh's accusers had this to say to her ? don't sulk in some faraway land. Come home, confront your accuser and face the music.

The engrossing soap opera at Manila's Malacanang Palace broke open a few weeks ago barely a month after President Arroyo faced down a military mutiny while preparing to run for a second term in next year's elections.

In the spotlight are the business activities and lifestyle of the man known in quaint Filipino parlance as the First Gentleman - presidential spouse Jose Miguel "Mike" Arroyo.

Arroyo, a lawyer and businessman, is accused of laundering millions from corrupt deals, of operating secret bank accounts and of giving cronies lucrative official posts, including the head of the national gaming corporation and the Manila airport authority.

Then there are the allegations of a steamy affair between Arroyo and his accountant and personal assistant, Victoria Toh, who is holed up in Vancouver on vacation .

The allegations against Arroyo have been spearheaded by Senator Panfilo "Ping" Lacson, who is expected to be one of the leading opposition candidates in next year's presidential race.

Senator Lacson himself is facing accusations of corruption and ordering extra-judicial killings during his tenure as the nation's chief of police. The allegations against Lacson also have strong Canadian connections because some of the suspects involved in the murders and at least one witness have taken refuge in Canada (see archives, April 10, 2003, www.asianpacificpost.com)

In addition, Lacson, the former Philippines chief of police, is facing accusations that he, and his wife, have secret deposits in a Canadian financial institution and 16 other bank accounts in Hong Kong and the United States, totalling over US$700 million.

The money, police said in a report is believed to have been amassed by Lacson and his cronies since 1996 from drug smuggling, money laundering operations and the kidnapping for ransom of Chinese businessmen in Manila.

Lacson claims the allegations against him are rooted in a plan to stop him from becoming president. He has denied the charges.

Many in the Philippines think that the latest presidential scandal orchestrated by Lacson is a way of deflecting the public scrutiny on him by focussing the electorate on the shenanigans at Malacanang palace.

Lacson, using parliamentary immunity, fired the first salvos by calling for a legislative inquiry into allegations that First Gentleman Arroyo laundered at least 260 billion pesos (C$8.3 billion) in secret bank accounts.

To back up his claims, he provided the statements of a single witness - who has since recanted - and photocopies of bank documents. Lacson also claimed that besides using the false name Jose Pidal to launder funds, the President's husband allegedly hid tens of millions in the bank accounts of Victoria Toh, her brother Thomas Jr., who is in Canada, and her brother-in-law Kelvin Tan.

Lacson's ally Senator Sergio Osmena III also insinuated that some of the cash was used to buy a C$850,000 house in Vancouver. While most of the allegations by Lacson and Osmena have not been proven, Filipinos became suspicious of the business dealings of the First Gentleman after his younger brother, Ignacio "Iggy" Arroyo, took the blame for some of the infamous Jose Pidal bank accounts - but refused to say where the money came from.

This added fuel for an engrossed Filipino electorate that has begun widely circulating cell-phone text messages of the senator's speeches, jokes about the alleged affair between Victoria Toh and Arroyo and pictures of the two vacationing in San Francisco.

In the midst of all the mud-slinging, Victoria Toh briefly emerged from her Vancouver hideout to speak with Philippine news outlets and deny the opposition's allegations of an affair with the First Gentleman.

Toh said her life has been shattered by Lacson's claims and has vowed to clear her name.

"I feel my life is over. I am a very private person and now, the whole world has labelled me a mistress and a dummy of Arroyo's corporations," she said. "A mistress and dummy is not who I am, and I will defend my honour."

"In an effort to clear my name, I have advised my lawyer to file a case against Senator Panfilo Lacson in the Senate ethics committee. We want to make Senator Lacson accountable for his lies against me and my family," said Victoria Toh, who has been taking sleeping pills because of the emotional stress.

"You (Senator Lacson) are no officer and gentleman...Senator Lacson is using the media to destroy us...That is so unfair. We are private persons who have done no wrong. Why is he including us in a political game"

Arroyo recently broke his silence on the issue after calls by some congressmen, including those from his wife's ruling party to file for divorce.

"I know that Gloria is the chief of state, but she is also my life and my heart. If this affects the President, I am hurt even more. I acknowledge that my family has been affected by all of this, and I have apologized to them... I am sorry for the pain that this has caused my children and my wife," he added.

Arroyo's apology fell short of touching on his alleged relationship with Victoria Toh.

He reacted to the legal-separation issue proposed by some congressmen, saying his marriage is a private matter.

"I cannot imagine a life without my wife beside me," he said, adding that he is more concerned with the impact that the proposal would have on his family.

Arroyo denied that he and the President are already living separately, saying they attend Mass and receive Communion together every day.

Asked if he is on speaking terms with his daughter, Luli, he replied, I hope so.

"I have been married for 35 years and we have been blessed with three wonderful children and one beautiful granddaughter. Like any couple, we have had our ups and downs and our moments of joy and sadness," he said.

Filipinos watching the drama unfold in Manila are split over calls for a full scale Senate inquiry into the allegations against the First Family.

The Philippine Senate itself is struggling to douse public perceptions that some of its members are abusing their parliamentary immunity to hit out at political foes.

Roberto Arca, a Toh family lawyer said it was unbecoming of a senator to make accusations that are not well documented and cannot pass scrutiny.

"If it gets so obvious that there's absolutely nothing to hold on, I cannot imagine why the investigation should continue," said Senate President Franklin Drilon.

The hearings are essentially a political trial, said respected commentator Amando Doronila. Others are of the view that a senate inquiry is necessary to prevent another Marcos or Estrada situation from taking hold in a nation that is still suffering from the hangovers of greedy and corrupt leaders.

As for President Gloria Arroyo, the saga is beginning to tarnish her reputation as a strong, clean leader.

After a dignified silence and a scarcity of public sympathy, she recently called in consultants to bring back the shine to her presidential image.

Political commentators said it is too risky to think that this political soap opera will end with no impact on the presidency just because Filipinos have a history of tolerating palace indiscretions.