Frederick Go, the former President and CEO of NUSTAR Resort Cebu operator Universal Hotels and Resorts Inc, is the Philippines’ new Finance Secretary after the deepening flood control graft scandal claimed two government ministers on Monday.
President Ferdinand Marcos Jr accepted the resignations of Lucas Bersamin as Executive Secretary and Amenah Pangandaman as secretary of the Department of Budget and Management, with a press briefing revealing they had stepped down “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.”
Go, until now Special Assistant to the President for Investment and Economic Affairs, steps into the shoes of Ralph Recto, who replaces Bersamin as Executive Secretary.
“I thank the President for his continuing trust and confidence,” said Go in a statement reported by local media outlet ABS-CBN. “It is with a deep sense of responsibility that I take on this role. Recognizing the challenges and opportunities ahead, I am fully committed to promoting fiscal strength and sustainable economic growth for the country.
“I look forward to working closely with our partners in government, the private sector, and the international community to pursue shared prosperity and a brighter future for all Filipinos.”
The fallout from the flood control scandal shows no sign of abating, with tens of thousands of Filipinos having protested nationwide in recent weeks over what many sees as endemic corruption.
The scandal first broke in September when an investigation into Php100 billion (US$1.75 billion) worth of flood control projects awarded to 15 companies found that many of the projects were not located in the country’s most flood-prone areas. In some cases, projects claimed to have been completed were found to be non-existent, while others were completed using cheap and substandard materials.
It is alleged that at least some of those companies paid off politicians and local officials to win contracts and avoid scrutiny of their work. A group of officials from the Department of Public Works and Highways (DPWH) was also found to have lost more than Php950 million (US$16 million) in embezzled money in 13 casinos across Manila, Cebu and Clark.
The appointment of Go as Finance Secretary comes with President Marcos crediting him for helping advance investments and strengthen investor confidence in the Philippines.
Go, the cousin of current Universal Hotels and Resorts Inc chairman Lance Gokongwei – whose family controls conglomerate JG Summit Holdings – played a key role in the development of NUSTAR before stepping down in 2024 to join President Marcos’s economic team. NUSTAR opened in 2022.
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