The departure of Benjamin E. Diokno from the Cabinet marked the end of two consecutive administrations where the finance secretary completed the full six-year term alongside the president.
The post of Secretary of Finance (SOF) is widely regarded as one of the most influential positions in the Cabinet, given the significant impact of the official's decisions and leadership on the country's economy, public finances, and international standing.
From 2010 to 2022, both former Finance Secretaries Cesar V. Purisima and Carlos G. Dominguez III completed their entire six-year terms during the presidencies of Benigno Aquino III and Rodrigo Duterte.
When Diokno was appointed as the SOF, his selection received widespread praise from various sectors. With a wealth of government experience, including roles such as budget secretary and central bank governor, Diokno was seen as an ideal fit for the position.
However, less than five months into the Marcos Jr. presidency, Diokno's tenure came under scrutiny due to the country's anemic economic growth performance and skyrocketing consumer prices amid global headwinds. This led to immediate rumors about his potential replacement.
But President Marcos promptly dismissed the rumors as "fake news," aiming to maintain a sense of stability in his economic team. However, this was short-lived, as the issue of rice prices unfolded in September 2023, causing further disruption.
In an interview with the finance press corps, Diokno candidly revealed that President Marcos had imposed a price ceiling on rice without consulting his economic managers.
Diokno's disclosure offered insight into the decision-making process of the Marcos administration. Critics highlighted that excluding the economic team from such a crucial decision signaled their exclusion from the president's "inner circle.”
The DOF chief's disclosure stirred unease among the President's close allies, sparking rumors of Diokno's replacement for the second time. But unlike previous speculation, this time the rumors lingered, creating further scrutiny of the finance chief.
The rumor mill was immediately abuzz with potential successors, with names such as businessman Frederick Go, Batangas Rep. Ralph Recto, as well as former finance undersecretary and businessman Eric Recto in the mix.
Out of the three names, the Batangas lawmaker has emerged as a frontrunner due to his previous role as the head of the National Economic and Development Authority and extensive political experience. These credentials are viewed as particularly advantageous in the current context for assuming the position of DOF chief.
Speculation about Recto's upcoming appointment further intensified when he joined President Marcos on his official visit to the United States in November of last year.
Amidst the growing rumors, Diokno remained unperturbed, offering a standard official response to such speculation: "I serve at the pleasure of the President.”
Before the close of 2023, it became increasingly clear that President Marcos lacked full confidence in the economic team. This perception was reinforced when Frederick Go was appointed as the economic czar, and the Office of the Special Assistant to the President for Investment and Economic Affairs was created for him, granting him a secretary-level position.
In this new role as SAPIEA, Go took over as the head of the Economic Development Group, a position previously held by Diokno.
At the start of the new year, speculation swirled about Diokno's future at the DOF, with rumors indicating that his time in the position was coming to an end. This speculation gained traction as several scheduled engagements, including his weekly press chat, were suddenly canceled.
Malacañang officially put an end to months of speculation on the night of Thursday, Jan. 11, which happened to be Recto's 60th birthday.
Nevertheless, Diokno's exit from the DOF does not leave him without a new role, as the President has appointed him to the Bangko Sentral ng Pilipinas, clinching the last seat on the influential Monetary Board, the central bank's top policy-making body.