MANILA, Philippines -- President Gloria Macapagal-Arroyo is satisfied with the report of the Department of Interior and Local Government that absolved a South Korean firm from alleged bribery, a senior Malacañang official said Wednesday.

Executive Secretary Eduardo Ermita said the President met with local officials of Misamis Oriental reportedly after Myung Goo Kwon, director of Hanjin Heavy Industries Inc., sent a letter to them expressing the company’s desire to withdraw from the project.

But Ermita said that the DILG had “cleared” Hanjin from allegations that it offered P400 million worth of contracts to local officials in exchange for securing permits for its operations.

Asked if the President's initiative averted the crisis, Ermita said, "The President had averted something that could have been messy if this was not looked into immediately."