Philippines President Gloria Arroyo has announced a sweeping crackdown on corruption, as accusations mount that government officials are lining their own pockets.

In a nationwide TV address, she said she would

• close down the government agency in charge of a major motorway project mired in controversy
• end a contract for a new airport terminal with a spiralling budget
• refund people who have been overcharged for electricity.

Joseph Estrada was brought down by corruption

She also said accusations that her justice minister had received a $2m bribe should be taken to the courts.

The BBC's John McLean in Manila says Mrs Arroyo's aim seems to be to avoid the fate of previous presidents, whose administrations collapsed under the weight of corruption allegations.

Former President Joseph Estrada is now in jail, while corruption charges against him are heard.

Construction scandals

Mrs Arroyo said that officials from the Public Estates Authority would be held accountable for projects which have become tainted with corruption.

The agency was in charge of a motorway project, which has been involved in an overpricing scandal.

I will make sure that you the consumers will get your refund

Gloria Arroyo

Now it will be closed down and its assets shared around other departments.

Mrs Arroyo also announced she would annul the contract for a new airport terminal for the capital, saying a "significant chunk" of the millions of dollars spent had not gone into construction costs.

And she promised consumers who had been faced with inflated electricity bills they would get their money back.

The Supreme Court has ordered the Manila Electric Company to reimburse an estimated 28bn pesos ($528m) in overbillings.

"I tell our people again, if the Supreme Court orders with finality that the refund will be implemented, I will make sure that you the consumers will get your refund," she said.

Re-election bid

Mrs Arroyo took a tough stance on allegations that her Justice Minister, Hernando Perez, received a $2m payment in return for a favourable court decision.

She said that the accusations should be taken to the courts, adding: "If the charges are true, everyone is going to jail".

She said for decades the Philippine state had been weak because "dominant classes" had shaped economic policy.

Our correspondent says that there's no threat yet that Mrs Arroyo will face the popular uprisings which overthrew Mr Estrada, and another former president Ferdinand Marcos.

But, he says, she clearly feels she must clean up her administration if she's to stand a chance of being re-elected in less than two years' time.