MANILA -- Malacañang rejected Tuesday the resignation of Philippine Anti-Graft Commission (PAGC) Chairman Constancia de Guzman.

Allegations and complaints of nepotism against de Guzman surfaced in a "white paper" disseminated in the media.

De Guzman’s appointment of her son and nephew as confidential executive assistant and technical assistant of PAGC, respectively, is being questioned.

The appointment of her son's girlfriend as an Executive Director was also raised.

De Guzman asserted that she did nothing illegal and has never betrayed anyone's trust. She clarified that the appointment of her relatives went through a legal and formal process.

De Guzman handed her resignation letter to the office of the President on September, which President Gloria Macapagal Arroyo rejected.

"De Guzman will remain in her post as PAGC chairman as she still enjoys the trust and confidence of the President," Press Secretary Cerge Remonde said in a press conference at Malacañang Tuesday.

"I will do everything to regain whatever was removed from me because of this issue," de Guzman, who turned emotional, said. (Sunnex)