For the nth time, the Cabinet of President Ferdinand Marcos Jr. has undergone another reshuffle, this time in relation to flood control issues.

Executive Secretary Lucas Bersamin and Budget Secretary Amenah Pangandaman both tendered their resignations “out of delicadeza”, Palace Press Officer Undersecretary Claire Castro announced on Monday.

“Both officials respectfully offered and tendered their resignations out of delicadeza. 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,” she said.

Replacing them are Finance Secretary Ralph Recto, who has been appointed as the new Executive Secretary, and Department of Budget and Management Undersecretary Rolando Toledo, who will now serve as the new head of the agency.

Special Assistant to the President for Investment and Economic Affairs Frederick Go will move to the Department of Finance to fill the role vacated by Recto.

Castro said the President expressed his gratitude to Bersamin and Pangandaman.

“The President conveys his deep appreciation to Executive Secretary Bersamin for his steady leadership at the helm of the Office of the Executive Secretary,” she said. “A former Chief Justice, E.S. Bersamin brought to Malacanang decades of legal wisdom, calm stewardship, and a deep respect for institution building. His contributions remain part of the foundation on which continuing reforms stand.”

“The President likewise extends his sincere gratitude to Secretary Pangandaman whose work at DBM strengthened the government's fiscal management, guided the timely passage of national budgets, and ensured that social programs and frontline services were funded and delivered,” she added.

Last Friday, Pangandaman joined Presidential Communications Office acting Secretary Dave Gomez and Castro in refuting the claims made by Co when he released the first part of his video statements. They asserted that the President did not order budget insertions since the proposed budget comes from Malacañang Palace and the Office of the President.

Voluntary resignations

Castro clarified that the resignations of the two officials were voluntary and not requested by the President.

She also reiterated Malacañang’s position that the allegations made by former Ako Bicol Partylist Representative Zaldy Co are “not that serious”, emphasizing that he should return to the Philippines and course his statements through proper channels.

“Whatever he said, it may have been what gave reason for our two brave secretaries to voluntarily resign from their positions to allow for an in-depth investigation into the anomalous flood control projects,” she said.

In his three-part video statements, Co implicated Pangandaman in the P100 billion insertions in the 2025 National Budget.

Bersamin was also tagged as a beneficiary in the flood control project anomalies by Roberto Bernardo, a former undersecretary at the Department of Public Works and Highways, during the Senate Blue Ribbon Committee hearing.

Meanwhile, Adrian Bersamin, a grandnephew of the former Executive Secretary, remains in the Presidential Legislative Liaison Office.

The PLLO executive was tagged by Co as one of the Malacañang officials who allegedly confirmed Marcos’ insertion orders in the 2025 General Appropriations Act.

PBBM not exempt

Castro noted that even with these investigations, the President does not exclude himself.

“Of course. No one should be exempt. But the President, he knows what he is doing, he knows why he ordered the investigation and led this in-depth investigation,” she said.

“So, that means, if he himself ordered the investigation, we know that his intentions are pure and he really wants to stop corruption,” she added.

Bersamin and Pangandaman will remain subject to investigations even if they are no longer in government and are considered private citizens.

Castro added that other Cabinet members who believe they may be involved in the flood control scandal are free to submit their resignations.

“For example, a Cabinet member who is involved or could be involved in this type of anomaly, the President wants them to resign out of delicadeza,” she noted.

BIR chief reshuffle not linked to controversy

When asked if the recent changes in the Bureau of Internal Revenue leadership are connected to the flood control issue, Castro said the replacement of Romeo Lumagui Jr. is within the President’s prerogative.

“Well, all of the Cabinet, they are serving at the pleasure of the President,” she said.

“There is nothing to say about that. It is likely that a change in leadership is needed to improve the work and outcome or results of the BIR,” Castro added.