Malacañang was jolted Monday by the shock resignations of Executive Secretary Lucas Bersamin and Budget Secretary Amenah Pangandaman, deepening the turmoil triggered by the widening corruption probe into flood control projects.
The twin departures — coming amid surging public outrage and growing political tension — plunged the Marcos administration into greater uncertainty and stoked fears of more instability at the highest levels of government.
Palace Press Officer Undersecretary Claire Castro said both officials stepped down “out of delicadeza.”
“Both officials respectfully offered and tendered their resignations out of delicadeza (propriety), 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,” Castro said.
Finance Secretary Ralph Recto was named the new Executive Secretary, while Frederick Go, the Special Assistant to the President for Investment and Economic Affairs, will assume Recto’s former post. At the DBM, Undersecretary Rolando Toledo was named officer-in-charge replacing Pangandaman.
Castro said the President conveyed his appreciation to both outgoing officials for their service.
“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 Malacañang 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.”
She said the President likewise thanked Pangandaman, noting how her work “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.”
Last Friday, Pangandaman joined Presidential Communications Office acting Secretary Dave Gomez and Castro in disputing claims made by former Ako Bicol Partylist Representative Zaldy Co in his first video statement.
The three maintained that the President did not order any budget insertions, stressing that the proposed national budget came directly from Malacañang and the Office of the President.
Resignations were voluntary
Castro emphasized the resignations of Bersamin and Pangandaman were voluntary and were not sought by the President.
She reiterated Malacañang’s stance that the allegations raised by Co were “not that serious,” stressing that Co should return to the Philippines and course his statements through the proper legal channels.
“Whatever he said, it may have been what prompted our two brave secretaries to voluntarily resign to allow for an in-depth investigation into the anomalous flood control projects,” Castro said.
In his three-part video series, Co accused Pangandaman of involvement in an alleged P100-billion insertion in the 2025 national budget.
Bersamin, meanwhile, was implicated in the flood control anomaly by former DPWH Undersecretary Roberto Bernardo in a Senate Blue Ribbon Committee hearing.
Despite Bersamin’s resignation, his grandnephew, Adrian Bersamin, remains with the Presidential Legislative Liaison Office. Co tagged the younger Bersamin as among the Malacañang officials who supposedly confirmed the President’s budget insertion orders in the 2025 General Appropriations Act.
PBBM not exempt
Castro emphasized that the ongoing probe covers all officials — including the President.
“Of course. No one should be exempt. But the President knows what he is doing. He ordered and is leading this in-depth investigation,” she said. “That means his intentions are pure, and he truly wants to put a stop to corruption.”
She added that both Bersamin and Pangandaman will remain subject to investigation even after stepping down, as they are now private citizens.
Castro also said that any other Cabinet members who believe they may be implicated in the flood control scandal are free to resign “out of delicadeza.”
“For example, if a Cabinet member is involved or could be involved in this anomaly, the President wants them to resign out of delicadeza,” she said.
The departure of two of the President’s aides came four days after Bureau of Internal Revenue Commissioner Romeo Lumagui Jr. stepped down.
Recto’s record under scrutiny
While his appointment drew praise from RCBC chief economist Michael Ricafort and China Bank managing director Juan Paolo Colet, Recto remains one of the more prominent — and polarizing — figures in Philippine politics.
Praised by some as a reformist, his record shows how legislative ambition and personal branding often overshadow public interest.
His most lasting imprint, the Expanded VAT Law, boosted government revenues but hit ordinary Filipinos the hardest. Rising prices and pressure on small businesses fueled public anger and contributed to his 2007 Senate loss, with critics saying the measure favored technocrats over working families.
Despite setbacks, Recto’s political influence remained strong.
In Batangas, many taxpayer-funded school buildings carry his name — “Sen. Ralph G. Recto Type School Building”—which is often seen as political self-promotion, despite guidelines advising against naming public infrastructure after sitting officials.
His actions were again questioned during the PhilHealth controversy, when nearly P90 billion of the health insurer’s funds were transferred to the National Treasury.
Recto defended the move on technical grounds, but critics argued that it weakened the health insurance system and reflected his tendency to rely on legalities rather than accountability.
As Executive Secretary, Recto will occupy a key position in government, overseeing policy implementation and being a close adviser to the President. His career reflects a blend of legislative achievements, administrative responsibilities, and issues that sparked public debate.