Gunman shoots hostages dead as Philippine police storm bus

At least six hostages were killed today when police stormed a bus full of tourists being held at gunpoint in Manila.

Four passengers crawled out alive after the tense 13-hour stand-off turned into a bloodbath, with reports of up to seven or eight dead. The driver of the bus also scrambled clear.

Police smashed windows when shooting was heard inside the vehicle as darkness fell in the capital of the Philippines. The gunman was 55-year-old Rolando Mendoza, a police inspector sacked over extortion charges who was angry at losing his pension. He was armed with an M-16 assault rifle and was said to have been among those killed. He forced the bus to stop across a wide road in Manila's biggest park.

The bus, operated by Hong Thai Travel, had 22 tourists from Hong Kong on board and three Filipinos — the driver, tour guide and photographer. Nine were released, two women, three children, a diabetic man and three Filipinos, during early negotiations.

Mendoza threatened to kill the remaining hostages in a live phone interview with a local radio station, saying: "I can see there are many Swat teams arriving, they are all around. I know they will kill me, I'm telling them to leave because any time I will do the same here."

Six people were reported dead on arrival at a city hospital and another was critically injured.

Earlier, via a handwritten note stuck to the bus door, Mendoza said a "big deal" would happen after a certain time but the deadline passed without incident.

Mendoza had hitched a ride on the bus from the historic city of Intramuros and then "declared he was taking the passengers hostage" when it reached Jose Rizal Park near Manila Bay. The area also includes the US embassy and a number of hotels.

The gunman demanded his job back as a condition of freeing the remaining hostages. A police spokesman said commandos had shot out the tyres of the bus to immobilise the vehicle.

Mendoza asked for food for those remaining on the bus, which was delivered, and fuel to keep the air-conditioning going during the heat.

His brother, Gregorio, told a local TV station that he was upset by his dismissal from the force. Local media said he had been sacked for reasons including extortion, and because of his sacking he had lost his retirement benefits.

"His problem was he was unjustly removed from service. There was no due process, no hearing, no complaint," said Gregorio, who was later taken into custody by police.

Stuck to the bus door was a piece of paper with the handwritten message: "BIG MISTAKE TO CORRECT A BIG WRONG DECISION". A larger piece of paper on the front windscreen was headed "RELEASE FINAL DECISION" and then what appeared to be details of his case.

The road was cordoned off, with the bus isolated inside the park. Several ambulances and a fire engine were on stand-by.

Police sharpshooters took positions around the bus as officers negotiated with the hostage-taker.

During the siege, Fidel Posadas, police deputy director for operations, said: "He has released children, the elderly and the sick. He is showing signs of kindness and I think this will be resolved peacefully."

Hong Thai Travel Services general manager Susanna Lau told TV that the tour group had left Hong Kong three days ago for a visit to Manila and had been scheduled to fly back today.

Bai Tian, deputy mission chief at the Chinese Embassy, told reporters they wanted every step taken "to secure the safety and security of our Chinese nationals".

Two officials were being sent to Manila and a hotline was being set up in Hong Kong for families of the hostages.

Gunman once hailed for honesty

The hostage taker was an outstanding policeman who once received a medal for his honesty.

Senior inspector Rolando Mendoza, 55, seized the passengers in an attempt to get back the job he was sacked from a year ago.

He received a medal for being one of Manila's "most outstanding" police officers and was commended for honesty, including picking up money on the street and returning it to its owner.

But newspaper reports in 2008 said he was charged with robbery and extortion after a hotel chef alleged he falsely accused him of using drugs to blackmail him. His brother and son are also police officers.