NEW LEADERSHIP AT THE PALACE: Ralph Recto (left) takes over as Executive Secretary following the resignation of Lucas Bersamin (right)
Marcos reorganizes top leadership, names new Executive Secretary, DBM OIC and Finance Secretary as infrastructure and budget probes deepen.
MANILA – President Ferdinand Marcos Jr. has accepted the resignations of Executive Secretary Lucas Bersamin and Budget Secretary Amenah Pangandaman, two of the most senior officials to exit his administration as scrutiny widens over alleged ghost flood control projects and disputed budget insertions.
The Palace announced the departures on Monday, November 17, 2025, describing both decisions as acts of delicadeza (a gesture of ethical propriety). Neither official faces criminal charges, and both have publicly denied wrongdoing.
A swift reordering at the center of the administration
To fill the resulting vacancies, Marcos appointed Ralph Recto as the new Executive Secretary, giving him oversight of daily Palace operations and cross-Cabinet coordination.
At the Department of Budget and Management, Undersecretary Rolando Toledo was designated officer in charge, ensuring continuity in preparing the 2026 National Expenditure Program and implementing the 2025 budget.
Former Special Assistant to the President for Investment and Economic Affairs Frederick Go will replace Recto as Finance Secretary. The Palace said the SAP role will remain vacant.
Budget allegations heighten scrutiny of flood control projects
The reshuffle comes as the administration faces sustained public attention on billions of pesos in flood control allocations.
Pangandaman became a central figure after former Ako Bicol representative and past House appropriations chair Zaldy Co alleged that she relayed supposed instructions to insert roughly 100 billion pesos into the 2025 national budget during the bicameral conference. Pangandaman has denied the claim, saying presidential directives must appear in the National Expenditure Program and that issuing such an instruction at the bicameral stage would violate established budget procedures.
Bersamin, a former chief justice, was separately referenced in Senate testimony involving unprogrammed appropriations that a witness claimed were linked to the Office of the Executive Secretary. He has rejected the allegation, stating that his office neither selects nor approves infrastructure projects.
The Palace said both officials stepped down after their departments were repeatedly cited in public discussions, emphasizing that the resignations allow investigations to move forward without distraction.
Rallies intensify pressure on Palace leadership
The exits follow a period of heightened public protests. Over the weekend, members and supporters of Iglesia ni Cristo mounted a multi day rally at Rizal Park calling for transparency and accountability in government spending. City officials estimated around 27,000 participants at one point, while organizers expected larger crowds as the gathering continued.
This marks the second major Cabinet realignment under Marcos. Earlier in 2025, he sought courtesy resignations from Cabinet secretaries after administration-backed candidates underperformed in the midterm elections, although most members of his economic team retained their posts.
A government recalibrating under investigation
Malacañang has framed the reshuffle as part of efforts to strengthen policy coordination and maintain uninterrupted government operations while inquiries into flood control and budget allocations continue.
At present, no investigative body has formally implicated Bersamin or Pangandaman in criminal cases. Whether the leadership changes satisfy public expectations for accountability will depend on the progression of Senate hearings, the results of ongoing audits and the conclusions of oversight and investigative agencies reviewing the disputed projects.
