DBM’s Diokno is new governor of Bangko Sentral ng Pilipinas

President Rodrigo Duterte has appointed Budget Secretary Benjamin Diokno as the new governor of the Bangko Sentral ng Pilipinas (BSP).

Executive Secretary Salvador Medialdea confirmed the appointment on Monday following a Cabinet meeting  presided by Duterte. Medialdea said Duterte made the announcement at the start of the monthly meeting.

In a separate text message, Diokno said he will assume his new post on Tuesday, March 5.

Diokno, 70, will be serving the unexpired term of the late BSP Governor Nestor Espenilla Jr., who was supposed to end his tenure in July 2023.  He will be the fifth central bank governor.

Malacañang has yet to announce Diokno’s replacement at the Department of Budget and Management, which he also led under the Estrada administration.  He also served as Budget undersecretary during the administration of the late Corazon Cojuangco Aquino.

Espenilla, 60, passed away on February 23 after battling tongue cancer.

Under Espenilla's leadership, the BSP continued to pursue major reforms under the theme “Continuity Plus Plus” covering monetary and financial policies, as well as the BSP organizational structure. 

He led the digitalization of the retail payment system in the country for a more inclusive and efficient financial system. 

Amendments to the BSP charter were also passed into law, strengthening the capability of the central bank to deliver its mandate to promote price and financial stability and to foster a safe, efficient and inclusive payment system.

The Palace earlier said Espenilla’s successor should be a person of integrity and competence.

The Palace also hoped that the next BSP chief will continue the good work done by Espenilla.

“In his new tour of duty in the BSP, we expect incoming Governor Diokno to spearhead reform initiatives that will align the financial institution’s operations with international best practices and improve its corporate viability, among others, in line with Republic Act 11211, which was signed into law by President Duterte just last February 14,” presidential spokesperson Salvador Panelo said in a statement.

“With him at the helm of the Bangko Sentral ng Pilipinas, our banking institutions are in good and competent hands.”

The Palace also thanked Diokno for his services to the nation as DBM chief.

Panelo said that Diokno was instrumental in presenting the Duterte administration's budget “which laid down the foundation for a ‘Matatag, Maginhawa at Panatag na Buhay’ through investments in growth-enhancing infrastructure programs and innovations, inequality-reducing social services and peace-enabling initiatives."

“A job well done indeed, and expertly at that,” the Palace spokesman said.

An economist and former University of the Philippines professor, Diokno’s appointment to the BSP comes amid the House investigation on the alleged anomalies on the proposed 2019 national budget.

He was grilled during the Question Hour at the House of Representatives over budget augmentation for infrastructure projects that supposedly favored his relatives.  He has denied this.

Despite calls for his resignation from some congressmen, the President stood by Diokno, who retained him at the DBM.

Born in Taal, Batangas, he finished his Bachelor's Degree in Public Administration at the University of the Philippines (1968), and earned his Master’s Degree in Public Administration (1970) and Economics (1974) from the same university.

He also holds a Master of Arts in Political Economy (1976) from the Johns Hopkins University in Baltimore, Maryland, USA and a Ph.D. in Economics (1981) from the Maxwell School of Citizenship and Public Affairs, Syracuse University in Syracuse, New York, USA.

His immediate past positions included:
• Senior Advisor, International Tax and Investment Center (ITIC)
• Professorial Lecturer, School of Economics, University of the Philippines
(Diliman)
• Chairman, Board of Regents, Pamantasan ng Lungsod ng Maynila (University of
The City of Manila)
• Chairman, Board of Trustees, Ospital ng Maynila Medical Center
• Independent Director, Asia United Bank

He also served as Fiscal Adviser to the Philippine Senate and as chairman and CEO of the Philippine National Oil Company (PNOC) and chairman of the Local Water Utilities Administration. —NB/LDF, GMA News