PRESS DIGEST - Philippine newspapers - August 28

MANILA Aug 28 (Reuters) - These are the leading stories in Manila newspapers on Thursday. Reuters has not verified these stories.

- Armed members of the Ilaga, a Christian group known for its bloody attacks and human rights abuses in Mindanao in the 1970s, have resurfaced in North Cotabato, warning the Moro Islamic Liberation Front to stop its atrocities against civilians or face the consequences. (PHILIPPINE DAILY INQUIRER, THE MANILA TIMES)

- A lawyer of First Gentleman Jose Miguel Arroyo admitted calling the head of the Presidential Commission on Good Government for help regarding the Government Service Insurance System's legal battle with Manila Electric Co MERB.PS but denied he did so on orders of the president's husband. (PHILIPPINE DAILY INQUIRER, THE PHILIPPINE STAR, MALAYA)

- Government and Moro secessionist negotiators met in Kuala Lumpur to try to agree on the fate of an international team monitoring the ceasefire agreement that they signed in 2003, a source in the government peace panel said. (MANILA STANDARD TODAY)

**********

BUSINESS

- The Philippines lags behind its neighbours in reducing poverty and is in the company of South Asian countries which have done a poor job in reducing the ranks of the poor in the past decade, an Asian Development Bank study showed. (BUSINESSWORLD)

- The government spent 406.82 billion pesos ($8.8 billion) in the seven months to July to pay maturing debts. This was 0.6 percent lower than the 409.37 billion pesos paid a year ago, data from the Department of Finance showed. (PHILIPPINE DAILY INQUIRER, THE PHILIPPINE STAR, THE MANILA TIMES)

- Alsons Consolidated Resources Inc (ACR.PS), a member of the Alcantara group of companies, plans to put up a $2.4 billion bioethanol plant in Northern Mindanao to take advantage of an expeced increase in demand for alternatives fuels next year. (THE PHILIPPINE STAR, MANILA STANDARD TODAY)

($1 = 45.73 pesos)

(Reporting by Karen Lema)