MANILA, Philippines--President Gloria Macapagal-Arroyo appointed Presidential Adviser for New Government Centers Silvestre Bello III on Tuesday as the new Cabinet secretary, replacing Ricardo Saludo who had been named chair of the Civil Service Commission (CSC).

Bello was chair of the Philippine peace panel negotiating with the Communist Party of the Philippines (2001-2004). He was also formerly justice secretary.

Bello will take the post upon Saludo's confirmation as CSC chair by the Commission on Appointments, said Press Secretary Ignacio R. Bunye.

Bunye himself announced on Sunday that he was moving to the Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas.

The Monetary Board will soon have vacancies with the expiration of the six-year terms of some board members, including Commission on Higher Education Chair and former Socioeconomic Planning Secretary Romulo Neri.

Ms Arroyo has reportedly promised to appoint former Chief of Staff Michael Defensor and former Senators Ralph Recto, Tessie Aquino-Oreta and Vicente Sotto III to key positions in her administration as payback for joining her Team Unity slate in the 2007 elections. But there has been no word on the defeated senatorial candidates.

Former Surigao del Sur Rep. Prospero Pichay, who also failed in his bid for a Senate seat, said he was not inclined to join the Arroyo administration at this point. The former staunch Arroyo defender in the House of Representatives said by phone that he was not seeking any Cabinet post.

"If the President will offer me a post that I think I'm not qualified to occupy, then I will have to turn down the President because I don't want to burden the Filipino people and the President," said Pichay, who is eyeing another Senate run in 2010.

Defense Secretary Gilbert Teodoro, Secretary Cerge Remonde of the Presidential Management Staff, Energy Secretary Angelo Reyes and Metropolitan Manila Development Authority Chair Bayani Fernando were spared by Ms Arroyo from the revamp.

The next day, while visiting the Department of Justice, she also made it clear that Justice Secretary Raul Gonzalez would be retained.

She, however, kept as a "secret" the fate of Executive Secretary Eduardo Ermita and Bunye at the time.

Ermita first served as defense secretary before replacing Alberto Romulo, who became foreign secretary.

Bunye took over the post vacated in 2002 by Milton Alingod, who is now head of Radio-TV Malacañang, the government's official mouthpiece.

A reporter and later a lawyer, Bunye had served as assistant vice president at Bank of the Philippine Islands and mayor of Muntinlupa for 12 years.