The Philippines' Executive Secretary Lucas Bersamin and Budget Secretary Amenah Pangandaman resigned on November 17. -- PHOTOS: PHILIPPINE DAILY INQUIRER/ASIA NEWS NETWORK, AMENAH F. PANGANDAMAN/FACEBOOK
MANILA (Bloomberg): Two ministers from Philippine President Ferdinand Macros Jr.’s cabinet resigned amid allegations of corruption, the first direct impact on his government from the multibillion-dollar scandal that’s ignited public anger and become a drag on the economy.
Executive Secretary Lucas Bersamin and Budget Secretary Amenah Pangandaman resigned on Monday "after their departments were mentioned in allegations related to the flood control anomaly currently under investigation and in recognition of the responsibility to allow the administration to address the matter appropriately,” Presidential Communications Office Undersecretary Claire Castro said in a briefing.
Marcos has tapped Frederick Go as the nation’s new finance chief, replacing Ralph Recto who will be the new executive secretary, Castro added. Undersecretary Rolando Toledo was meanwhile appointed officer in charge of the budget department.
Toledo’s "designation ensures uninterrupted operations as the government prepares for the rollout of next year’s budget,” Castro said.
The unfolding graft scandal in the Philippines has ignited public anger that’s only escalated since Marcos first exposed the misuse of state funds in July. The money was meant to mitigate flooding in one of the world’s disaster-prone nations. The mess has also gutted investor confidence, causing economic growth to slump in the third quarter, weakening the peso and decimating the stock market.
Marcos is trying to keep his leadership intact amid growing exasperation from the public that no one is being held to account for the widespread corruption. The lack of action also risks further stalling an economy that was once one of the fastest-growing in Southeast Asia.
Currency and stock markets were closed when the cabinet changes were announced but most Philippine dollar bonds fell, with notes maturing in 2035 sliding to their lowest since Sept. 8, data compiled by Bloomberg show.
It’s the second major reshuffle in Marcos’s cabinet since he took office in 2022. He made changes to his economic team in January last year when he named Recto as finance head.
In May, he asked his entire cabinet to resign so he could "recalibrate” his administration after an underwhelming performance by his allies in the Senate election. But he ended up keeping his economic team, only replacing his foreign affairs secretary.
The scandal has implicated many lawmakers, officials and contractors, all who have denied wrongdoing.
Tensions escalated over the weekend after a former lawmaker at the center of some of the allegations accused Marcos of receiving 25 billion pesos ($424 million) in kickbacks from project spending that the president had allegedly ordered to be included in the 2025 budget. Marcos’s office called the accusation "propaganda.”
The cabinet changes were announced on day two of a rally by an influential church group that drew some 600,000 people. The sea of protesters, many wearing white shirts printed with Transparency for a Better Democracy, converged at the historic Rizal Park in Manila, with thousands having camped out after Sunday’s gathering, where 650,000 people joined.
Earlier on Monday, Vice President Sara Duterte said Marcos is facing a "crisis of confidence, especially in the way these corruption investigations are being handled, which appear to lack both direction and resolve.”
The religious group, Iglesia ni Cristo, widely known for voting as a bloc during elections, supported the Marcos-Duterte tandem but ties between the two politicians have collapsed over policy differences. Iglesia ni Cristo plans to conclude the three-day rally on Tuesday.
Companies in the Philippines have also started to weigh in with six representative groups pressing action.
"We urge public institutions to ensure policy stability, uphold the rule of law and address corruption quickly and decisively,” groups including the Management Association of the Philippines and the Philippine Chamber of Commerce and Industry said.
--With assistance from Malavika Kaur Makol. -- ©2025 Bloomberg L.P.
