Former Budget Secretary Pangandaman Appointed CEO of Islamic Bank Amid Corruption Allegations

MANILA, Philippines — Former budget secretary Amenah Pangandaman has returned to government after Malacañang appointed her as the new chairperson and chief executive officer of the state-owned Al-Amanah Islamic Investment Bank (AIIB). The AIIB, which is the first and only Islamic bank in the country, welcomed Pangandaman’s appointment on July 10. Pangandaman previously served as the secretary of the Department of Budget and Management before she resigned last year after former congressman Zaldy Co linked her to flood control corruption allegations. Co named her as one of the government officials who allegedly relayed to him the supposed order of President Ferdinand Marcos Jr. and former House Speaker Martin Romualdez to insert P100 billion into the 2025 national budget for public works. Economist and former Department of Finance undersecretary Cielo Magno questioned Pangandaman’s new government post, saying that her appointment appeared to be a “reward” despite her alleged involvement in the flood control corruption controversy. “Hindi naiimbestigahan, hindi nakakasuhan, pero na-appoint as CEO ng isang government bank without any real experience in running a bank,” Magno said, stressing that running a bank is very different from being an “assistant governor.” (She was not investigated, she was not charged, but appointed as CEO of a government bank without any real experience in running a bank.) Magno pointed out Pangandaman’s alleged role in the release and reallocation of funds for flood control projects, which later became one of the country’s major corruption issues. “Anong tawag dito? Ano sa palagay n’yo? Rewarded,” Magno said. (What do you call this? What do you think? Rewarded.) Malacañang, meanwhile, defended Pangandaman’s appointment, saying that the flood control corruption issue was separate from the appointment. “Hindi naman po ibig sabihin ito na inaakusahan ng Pangulo, hinuhusgahan ng Pangulo o inaabswelto ng Pangulo. Hindi po ito usapin patungkol sa flood control project,” Palace Press Officer Claire Castro said during a press briefing in Malacañang on Monday, July 13. (This does not mean that the President accused, judged, or absolved Pangandaman. This is not about the flood control project.) Castro added that there is nothing wrong with Pangandaman’s appointment, noting that there are no active complaints or charges against the official. “Wala naman po sigurong masama kung i-appoint po niya ang isang tao na tingin niya ay makakapagtrabaho ng maayos,” Castro said. The Palace spokesperson stressed that the Marcos administration remains open to any investigation related to flood control corruption. “Kung mayroon po silang nakikitang mga ebidensya laban kay dating secretary Amenah Pangandaman, bukas po ang pangulo sa anumang klase ng pag-iimbestigahan,” Castro said. (If they have any evidence against former Secretary Amenah Pangandaman, the president is open to any kind of investigation.)