MANILA — President Ferdinand Marcos Jr. has appointed Finance Secretary Ralph Recto as the country’s new executive secretary, following the sudden resignations of Executive Secretary Lucas Bersamin and Budget Secretary Amenah Pangandaman. The announcement was made during a hastily called press conference at Malacañang Palace on Monday afternoon

Undersecretary Claire Castro, the Palace press officer, said Mr. Bersamin and Ms. Pangandaman tendered their resignations “out of delicadeza” — a Filipino concept of honor and propriety — after their departments were linked to allegations involving anomalies in flood control projects currently under investigation.

“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,” Castro said.

Presidential Legislative Liaison Office (PLLO) Undersecretary Adrian Bersamin — reportedly a relative of the outgoing executive secretary — also stepped down for the same reason.

“Delicadeza pa rin. Voluntary,” the press officer noted.

Recto Takes On Marcos’ Most Powerful Cabinet Post

Recto becomes Marcos’ third executive secretary in just over three years, assuming what is widely regarded as the most powerful unelected position in the Philippine government — often described as the “Little President” for its sweeping administrative authority.

A veteran legislator and seasoned economic policymaker, Recto previously served as a senator, congressman, and head of the National Economic and Development Authority. He was appointed finance secretary in January 2024.

The Palace emphasized that the President chose Recto for his “long record in economic policymaking, fiscal legislation, and national planning,” highlighting his role in coordinating “high-impact programs” across government.

Frederick Go, currently serving as presidential assistant for investment and economic affairs, will succeed Mr. Recto as secretary of finance.

A Sudden Turn After Weeks of Rumors

Although rumors of Bersamin’s removal had circulated for months, his resignation follows escalating allegations. Earlier on Monday, he sidestepped journalists’ questions about reports that he would soon be replaced.

“Ngayon lang siguro sila kasi nakapag-isip isip ng kailangang gawin para sa gobyerno at para sa bayan,” Castro said in response to questions regarding the matter.

Speculation intensified after former House Appropriations Committee chairman Zaldy Co accused Undersecretary Adrian Bersamin of involvement in an alleged scheme to siphon public funds through flood control projects — claims the Palace has neither confirmed nor dismissed.

Budget Undersecretary Rolando Toledo has been named officer-in-charge of the Department of Budget and Management following Ms. Pangandaman’s resignation.

Political Shake-Up After Election Setbacks

The reshuffle comes against the backdrop of a broader political recalibration inside the Marcos administration. In May, the President had asked for the courtesy resignations of his entire Cabinet after many of the candidates he endorsed in the 2025 midterm elections failed to win Senate seats.

Bersamin, a former chief justice, was frequently rumored to be among those on the way out, though such talk often faded just as quickly as it surfaced.