MANILA, Philippines—(UPDATE 2) A “colossus” that will dominate Philippine politics well after she steps down in 2010 is how President Gloria Macapagal-Arroyo envisions the proposed merger of the country’s two dominant political parties to be.

Speaking at a meeting Monday of the ruling Lakas-Christian-Muslim Democrats national directorate at the Manila Hotel, Ms Arroyo endorsed plans to unify Lakas-CMD and her own party, Kabalikat ng Malayang Pilipino (Kampi).

The President proposed the merger after the party's founder, former House Speaker Jose de Venecia, resigned as party president and was replaced by the incumbent House Speaker Prospero Nograles.

At the same time, the President also thanked Lakas members for being her "steady allies," and in particular, former president Fidel Ramos, for “continuing to be a beacon of sobriety, unity and peace not only for the party but for our country.”

Arroyo, who founded Kampi, is the chairman of Lakas-CMD while Ramos is the party's chairman emeritus.

Ms Arroyo, who said she would step down when her term ends in 2010, declared that the merger would see “a two-decade period of political leadership by our coalition.”

“Let us work hard together for the good of the nation and for our party’s victory in 2010, when by the mighty hand of Lakas and the blessings and support of the Filipino people, I shall pass on the torch of national leadership in a milieu of tranquility, justice, hope and economic well-being for our beloved countrymen,” she said.

The President made the statement amid fresh calls for her to resign over allegations that she and her husband received million-dollar kickbacks from the scrapped $329-million National Broadband Network (NBN) deal with Chinese firm ZTE Corp.

As anticipated, Pangasinan Rep. De Venecia yielded the party presidency to Speaker Nograles without a fight. De Venecia was ousted as Speaker in January after his namesake son, Jose III, implicated Ms Arroyo’s husband in the NBN controversy.

De Venecia skipped the meeting and avoided the embarrassment of being ousted by his erstwhile allies from the presidency of the party he co-founded. However, De Venecia accepted the post of president emeritus, saying it was a “position of honor.”

The Lakas-CMD merger with Kampi was one of seven resolutions that the directorate presented to Ms Arroyo.

Ms Arroyo said that the unification would “combine the talents and resources of two great political parties into a powerhouse team.”

Powerhouse

The merger will mean more allies that include “five senators, an absolute majority of the House with 143 representatives, 55 governors, 85 city mayors, 945 municipal mayors and over 7,000 vice governors, board members, vice mayors and councilors,” Ms Arroyo said.

The President said the merger “can create the dominant infrastructure that is a key to delivering the governance that our people expect and deserve.”

Like Malaysia

Arroyo compared Ramos and herself to former Malaysian Prime Minister Mahathir Mohammad and his successor, Abdullah Badawi.

“Our merged party will be a colossus that calls to mind Mahathir of Malaysia, whose decades-old dominant political machinery, supported by key business groups, provided the underpinning for Malaysia’s development,” said Ms Arroyo.

“Similarly, a composite of Ramos, Arroyo, and our successor, will mean a two-decade period, 1992 to 2016, interrupted only by 2-1/2 years of (President Joseph) Estrada, a two-decade period of political leadership by our coalition,” she said.

Ms Arroyo said that the merger would allow her to devote further her attention in making the economy grow stronger.

"With our reinvigorated party's leadership, and with our continuing unity, I remain bullish on our country, optimistic about our future and deeply committed to being a force for good," she aid.

"I am humbled at having the privilege of serving this nation not only as President of the Philippines but also as chair of Lakas," she said.

“All’s well that ends well after five postponements and a lot of speculations,” Sen. Juan Miguel Zubiri, Lakas secretary general, told reporters, a sentiment echoed by most Lakas officials and members after De Venecia voluntarily gave up the Lakas presidency.

A long way to go

But Ramos curtly warned: “We still have a long way to go on the economy, governance, graft and corruption, poverty reduction ... ”

All posts, except the party chair held by Ms Arroyo and executive vice president held by Quezon City Mayor Feliciano Belmonte, were declared vacant, as previously planned, during the meeting, but the incumbents remained after a vote.

Ramos was reelected as chair emeritus, Zubiri as secretary general, former Davao del Norte Gov. Rodolfo del Rosario as national treasurer, former Environment Secretary Heherson Alvarez as vice president for Luzon, Justice Secretary Raul Gonzalez as VP for Visayas, and former Surigao del Sur Rep. Prospero Pichay as VP for Mindanao, the position vacated by Nograles, Metropolitan Manila Development Authority Chair Bayani Fernando as VP for the National Capital Region, and Maguindanao Rep. Simeon Datumanong as VP for Muslim Communities, among others. With a report from Norman Bordadora