Malacañang Sunday laughed off the challenge of Liberal Party standard bearer Benigno Aquino III for President Arroyo to go on exile rather his sister, TV host Kris Aquino, saying the Chief Executive is staying in the country to continue her service to the nation.

Presidential Spokesman Ricardo Saludo said the President still has a lot of obligations to fulfill as the nation's leader in less than two months as well as an incoming congresswoman of the second district Pampanga afterwards.

Mrs. Arroyo, in an unprecedented move in the nation's history, will join the House of Representatives when her nine-year tenure ends next month. She will likely be replaced by Noynoy Aquino who is leading the presidential contest based on partial vote count.

"Alam ninyo siguro hindi na po natin papatulan yan kasi dahil siguro nagbibiro lang siya kaya makitawa na lang tayo (We will no longer dignify such claim because he could be joking so let's just laugh with him)," Saludo said over government radio.

"Ngayon yun namang si Pangulong Arroyo, alam naman natin na nahalal na miyembro ng Kongreso kaya hindi po sya puwedeng umalis ng bansa dahil may tungkulin po sya na kailangang tupadin (President Arroyo was elected member of Congress so she cannot just leave the country because  she has to fulfill her responsibilities)," he added.

Aquino, frontrunner in the May presidential elections, earlier thumbed down mounting public clamor for his sister, Kris, to fulfill her earlier promise to leave the country if she becomes a baggage for her brother when he wins the polls. A popular TV personality, Kris is one of Noynoy's sisters who have actively campaigned for him during the elections.

Aquino, son of the late Senator Benigno Aquino Jr. and President Corazon Aquino, instead reportedly claimed the outgoing President is the person who deserves to go on exile.

President Arroyo earlier vowed to facilitate a smooth transfer of power to the next leadership following the success of the country's automated elections. But the transition of power appeared chaotic after the camp of Aquino has pledged to investigate the alleged wrongdoings of the Arroyo administration.