Both the government and the Moro Islamic Liberation Front (MILF) have denied reports that MILF members are returning to an estimated 40 MILF camps, with the signing in Malaysia of an agreement with the government on rehabilitation and development in the war-torn areas of central Mindanao.

"There are no MILF areas or MILF camps in that agreement," said acting Press Secretary, Silvestre Afable.

"We are no longer seeking the return of the camps because in the first place, the military does not have full control of them. Except for Camp Abubakar (in Maguindanao, Autonomous Region in Muslim Mindanao), the camps are still controlled by the MILF," said MILF spokesman Eid Kabalu.

"The military had six months as a time frame to take control of the camps in 1998. They rushed the flag-raising ceremonies when, in fact, they didn't have full control of the said camps," Kabalu said, recalling the time when former president Joseph Estrada waged a civil war against the group.

"The agreement (which was signed in Kuala Lumpur) is a socio-economic package that will provide livelihood projects and other benefits for the people of Mindanao," said Kabalu.

He added it will allow the MILF to identify, manage, and receive private funds for projects in the war-affected areas. The agreement will also pave the way for the return of around 100,000 former residents to the camps.

This includes ordinary citizens as well as families in MILF camps who were displaced by the civil war in 2000.

Under the recently signed agreement, the MILF will form a project implementation body which will be involved in the implementation of development projects in central Mindanao.

The MILF will be working closely with the Autonomous Region for Muslim Mindanao (ARMM), which is led by the Moro National Liberation Front (MNLF), to conduct rehabilitation and development projects in central Mindanao, said Afable.

The MNLF and the MILF forged a unity agreement in Jakarta last year. "This is part of that unity agreement," Afable explained.

The MNLF forged a pro-autonomy peace settlement with the government in 1996. It led to the expansion of the ARMM from four to six provinces in a referendum for autonomy in August, 2001. The MILF cannot use private funds for war materials.

"There has never been a significant occasion for private funds to be used in the procurement of war material, or guns or ammunition to be used by the MILF against the government," said Afable when asked if there is a chance that the MILF might use the private funds for waging war against the government.

"Most of the private funds that have gone into Muslim Mindanao from private sources have gone into hospitals, health centres, madrassa schools," explained Afable.

Government secretary for special concern Norberto Gonzales will try to conclude the back-channel talks with the MILF, for the two camps to reach a political settlement in three months, said Afable.

The government and the MILF twice signed a ceasefire agreement, at the start of the talks in 1997 and in Libya in 2001. The recent agreement signed in Kuala Lumpur will be followed by talks on ancestral domains, prior to a political settlement. The MILF and the government also agreed to join hands against terrorism in central Mindanao.