Former DBM chief takes helm of Al-Amanah bank

Former Budget Secretary Amenah F. Pangandaman has been appointed chairperson and chief executive officer of the Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP), marking her return to public service months after stepping down from the Department of Budget and Management (DBM) amid the Marcos administration’s Cabinet revamp and heightened scrutiny over government spending.

The state-owned bank announced Pangandaman’s appointment on 10 July, describing the move as the beginning of a new chapter for the country’s only Islamic bank as it seeks to expand financial inclusion and strengthen Islamic banking nationwide.

Pangandaman, who served as DBM secretary under President Ferdinand Marcos Jr., oversaw the preparation and release of the national budget and spearheaded several fiscal and procurement reforms during her tenure.

Turbulent period

Her appointment, however, comes after a turbulent period at the DBM, where the agency found itself under public and political scrutiny following allegations of irregularities involving billions of pesos allocated for flood-control projects.

Although the allegations centered on the implementation of projects by infrastructure agencies, the DBM — which is responsible for budget preparation and the release of appropriations — became part of the broader public discussion over government spending.

The administration later ordered a review of flood-control projects after severe flooding in several parts of the country reignited questions over the effectiveness of billions of pesos spent on flood mitigation.

Despite the controversy, no court, the Office of the Ombudsman, or any investigative body has found Pangandaman criminally liable or established that she personally participated in any corruption involving flood-control projects.

Pangandaman eventually exited from the Cabinet following President Marcos’ government reorganization after the 2025 midterm elections. Like the rest of the Cabinet, she submitted a courtesy resignation as requested by the President before later leaving her post during the reshuffle.

Earlier budget controversy

Even before becoming DBM secretary, Pangandaman’s name surfaced during the 2019 congressional inquiry into alleged budget insertions in the Department of Public Works and Highways while she was serving as DBM undersecretary.

Some DPWH officials claimed that a P75-million budget item had been inserted upon her instruction.

Then-DBM Secretary Benjamin Diokno defended the adjustment, describing it as part of the regular budget process and insisting that it was “aboveboard.” Congress eventually removed the questioned allocation during budget ratification.

Pangandaman was never criminally charged in connection with the issue.

Reforms at DBM

Despite the controversies that surrounded her tenure, Pangandaman was also credited with several reforms, including the implementation of the New Government Procurement Act, the expansion of digital government payment systems, and measures that contributed to the Philippines’ top ranking in Asia in the 2023 Open Budget Survey.

She also led initiatives aimed at strengthening transparency and modernizing public financial management.

New role

As chairperson and chief executive officer of AAIIBP, Pangandaman is expected to lead the government’s Islamic banking institution as it works to broaden financial inclusion, particularly in underserved communities, and expand Shariah-compliant financial services across the country.