Two cabinet ministers in the Philippines resigned on Monday following allegations of corruption linked to government flood-control projects, in a scandal that has roiled the administration of President Ferdinand Marcos Jr. Executive Secretary Lucas Bersamin and Budget and Management Secretary Amenah Pangandaman stepped down after their departments were implicated in ongoing investigations, although both have denied any wrongdoing, presidential spokesperson Claire Castro said.
The resignations prompted a broader cabinet reshuffle, including the appointment of Frederick Go, previously the president’s special assistant for investment and economic affairs, as the new finance chief. The Philippines has been embroiled in the months-long scandal over alleged irregularities in flood-control projects, with estimated economic losses averaging 118.5 billion pesos ($2 billion) annually from 2023 to 2025. Public anger erupted after July flooding caused multiple deaths and forced tens of thousands to evacuate, exposing the consequences of allegedly substandard infrastructure.
President Marcos first revealed the alleged corruption in August, highlighting financial irregularities that he said contributed to the failure of flood-control systems. Congressional hearings since then have implicated public officials, senators, and construction firms, accused of profiting from contracts while failing to deliver adequate infrastructure. Authorities have frozen hundreds of bank accounts connected to the scandal, and an independent fact-finding commission has been established to investigate.
The scandal has claimed another high-profile casualty: Marcos’ cousin, Martin Romualdez, the Speaker of the House of Representatives, also resigned amid allegations, which he denies. Public protests have surged, including a major demonstration this week organized by an influential church group in Manila, as citizens demand accountability.
The political fallout has intensified scrutiny on President Marcos, whose family history includes widespread corruption under his father’s rule from 1965 to 1986. Vice President Sara Duterte criticized the president this week, citing a “profound crisis of confidence” in the handling of the corruption investigations.
The controversy has also dented investor confidence and economic momentum. The benchmark Philippine stock index has fallen 12 percent this year, while the peso has weakened nearly 7 percent against the US dollar since May. Third-quarter growth slowed to 4 percent year-on-year, down from 5.5 percent in the previous quarter, reflecting reduced public spending linked to the probe. ING has lowered its full-year growth forecast to 4.7 percent, citing weaker investments, lower public capital expenditures, reduced construction activity, and dampened private sector sentiment.
