In a written statement, Arroyo asked all junior military officers "with knowledge of such activities to bring evidence before the department of justice."

Allegations that the military brass sold munitions to guerrillas ranked high among the grievances of about 300 soldiers who launched the latest Philippine military mutiny on July 27.

The rogue soldiers took over a portion of the Makati financial district on July 27, in what the government said was a coup attempt against Arroyo. But the siege fizzled out and the rebels later agreed to face court-martial and the government promising to probe their allegations.

Arroyo said soldiers who give information to the probe body "shall be protected in your fight for the truth. There will be no whitewash or looking the other way."

She added: "If there is evidence, there will be prosecution. If guilt is proven, people will go to jail, whatever the rank or command."

Budget Secretary Emilia Boncodin on Tuesday said that immediately after the siege, she met with Defense Secretary Angelo Reyes and military chief General Narciso Abaya and agreed that "this is now the time for us to face this problem squarely."

She said her department as well as the state commission on audit would be setting up a new system led by civilians to help overhaul the military's bidding system.

Several committees would be set up, led by officials in a rotation basis, to oversee the awarding of military supply contracts. A task force will also be created to help in the accounting of military articles, Boncodin said.

"Sometimes familiarity will not breed something good," Boncodin told ABS-CBN television.

"We have created a task force and the task force started meeting last week to look at new (auditing) procedure that is going to fit the military."

"We have to be able to innovate and look for a way that they will (meet) their requirement without them violating any accounting (procedures)," she said. "There will always be some problems associated with it because it would be a matter of trust."

The mutinous soldiers had claimed they had evidence to prove that top defense officials were engaged in the sale of equipment to the rebels while money to be spent on soldiers' equipment was siphoned off by generals.

On Monday, Arroyo lifted a "state of rebellion" she invoked to quell the uprising, saying that the threat has abated even as several conspirators remained at large.

The government said the failed plot had called for the rebels to assassinate Arroyo and set-up a 15-man junta to be led by opposition senator Gregorio Honasan, who has gone into hiding.

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