By Benjamin Cuaresma
MANILA — Malacañang on Monday defended President Ferdinand Marcos Jr.’s decision to appoint former Budget Secretary Amenah Pangandaman as chairperson and chief executive officer of the state-owned Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP), stressing that she remains innocent unless proven guilty despite her alleged links to the multibillion-peso flood control controversy.
Palace Press Officer Claire Castro said President Marcos has every right to appoint officials whom he believes are qualified to serve, adding that Pangandaman’s appointment does not exempt her from possible investigation if evidence warrants legal action.
“There is nothing wrong with appointing someone whom the President believes can do the job well,” Castro said during a Palace press briefing.
Castro emphasized that Pangandaman’s return to government service should not be interpreted as an acquittal of allegations surrounding the controversial flood control projects.
She said the administration remains open to any investigation should sufficient evidence be presented against the former Budget chief.
“The issue involving the alleged anomalies in the flood control projects is a separate matter. If there is evidence against former Secretary Amenah Pangandaman, the President remains open to any investigation,” Castro said.
She also noted that Pangandaman is currently not facing any formal criminal case.
Pangandaman resigned as secretary of the Department of Budget and Management (DBM) in November 2025, together with Executive Secretary Lucas Bersamin, after both were implicated in the alleged flood control scam.
Former Ako Bicol Party-list Rep. Zaldy Co accused Pangandaman of helping relay instructions allegedly coming from President Marcos and then-House Speaker Martin Romualdez to insert around P100 billion worth of questioned public works projects into the proposed 2025 national budget.
Co also alleged that he attended a 2024 meeting at the Aguado Building near Malacañang with Pangandaman, former Presidential Legislative Liaison Office Undersecretary Adrian Carlos Bersamin, and Romualdez, during which a list of proposed projects was handed to him.
According to Co, the list supposedly came directly from President Marcos.
Pangandaman has repeatedly denied the allegations.
When asked whether Pangandaman is among those ordered investigated by President Marcos, Castro clarified that the President does not personally conduct investigations.
Instead, she said the Independent Commission for Infrastructure (ICI), the Department of Justice, and the Office of the Ombudsman have been tasked to determine whether any individuals should face charges in connection with the alleged irregularities.
“The investigating agencies are free to investigate anyone who may have been involved,” Castro said.
The Al-Amanah Islamic Investment Bank announced Pangandaman’s appointment on July 10, saying her leadership would help expand Islamic banking, promote financial inclusion, and strengthen economic opportunities for Muslim Filipinos.
She succeeded Amilbahar Amilasan Jr., who remains a member of the bank’s board of directors.
During her tenure as Budget secretary, Pangandaman spearheaded several major reforms, including the implementation of the New Government Procurement Act, the institutionalization of the Philippine Open Government Partnership, the Government Optimization Act, modernization of public financial management systems through digital innovations, blockchain-based budget tracking, and the revival of Project DIME (Digital Information for Monitoring and Evaluation).
Before leading the DBM, Pangandaman served as assistant secretary and later undersecretary of the agency before becoming technical adviser and eventually assistant governor at the Bangko Sentral ng Pilipinas under then-Governor Benjamin Diokno.
Malacañang maintained that while investigations into the flood control controversy continue, Pangandaman remains entitled to the constitutional presumption of innocence and may continue serving in her new government post unless evidence establishes otherwise.
ia/xf
