Manila:  The presidential peace adviser's office on Wednesday clarified that the P31 million (Dh2,601,309) fund allotted by the government to a communist splinter group is not a form of "pay out" as had been perceived in the press.

Undersecretary Luisito Montalbo, of the Presidential Adviser on the Peace Process (OPAPP) said the P31 million allotted by the government to the largely Central Philippines' based Marxist-Leninist Revolutionary Proletarian Army (RPA) and the Alex Boncayao-Brigade (ABB), is not intended as a direct pay-out to rebels to lay down their arms, but rather intended to finance projects that will enable former insurgents return to society.

Montalbo also clarified the project was not initiated during the current administration of President Benigno Aquino III, but was a hold over programme initiated during the presidency of Joseph Estrada in 2000.

"OPAPP is very transparent in its disbursement of funds. The PAMANA website clearly states that the P 31-million is for community development and livelihood projects for three peace and development community sites in Negros Island where there are members of the RPA-ABB," he said.

"It is part of PAMANA's funds for 2011 amounting to P 568 million (Dhs 47,662,702) and were provided for conflict-affected communities who find it more difficult compared to other communities to jumpstart their development."

PAMANA stands for Payapa at Masaganang Pamayanan or Peaceful and Prosperous Communities, a grassroots initiative of a programme to demobilise and reintegrate members of the RPA-ABB into the mainstream society.

Several quarters have been apprehensive that the funds meant for the former rebels will be squandered by the current administration on projects that does not address the roots of the insurgency in the island of Negros and Panay where the RPA-ABB actively operates.

The RPA-ABB is a breakaway organization from the mainstream group led by Jose Maria Sison, the Communist Party of the Philippines-New Peoples' Army-National Democratic Front (CPP-NPA-NDF).

The presidential palace for its part, said it would release the funds as intended despite protestations by certain quarters.

Deputy Presidential Spokesperson Abigail Valte said in a statement on Wednesday that under the agreement, which was signed in December 2000, livelihood projects, housing assistance, education and training, primary health care, agriculture and irrigation facilities, farm-to-market roads and microfinance will be provided to several hundred members of the RPA-ABB. among others.

Montalbo said that the series of profiling held last month in Negros and Panay Islands for the former combatants belonging to the Tabara-Paduano Group (TPG) of the RPA-ABB is almost finished.

The government is also currently engaged in peace negotiations with the CPP-NPA-NDF and the Moro Islamic Liberation Front.

"A total of 495 TPG members were profiled on October 20-30. Negros Occidental accounted for 358 members, while Negros Oriental and Panay Island (Iloilo, Antique and Aklan) have 50 and 87 members profiled," he said.