Ralph Recto sworn in as new Secretary of Department of Finance

House Deputy Speaker Ralph Recto [link] was sworn in as the new Secretary of the Department of Finance on Friday, replacing the former Secretary, Benjamin Diokno, in a move that has been seemingly in the works for quite some time. At a briefing, Mr. Recto said that his “number one” priority as Secretary will be the collection of taxes for FY25 through the Bureau of Internal Revenue, Bureau of Customs, and the Treasury. Mr. Recto said, “It’s all about fiscal sustainability.” Reaction to Mr. Recto’s appointment was overwhelmingly positive across the business and political spectrum. Mr. Recto has a Bachelor of Science in Commerce degree from De La Salle and a Certificate in Business Economics from the University of Asia and the Pacific. He worked for 9 years in the House of Representatives before winning election to the Senate in 2001. He joined the board of the Union Bank [UBP 44.35 ?1.2%; 161% avgVol] in 2008 after failing to win a second term in the Senate and was later that year appointed by Gloria Macapagal Arroyo to become the director-general of the National Economic and Development Authority. He resigned a year later to run for a second term in the Senate, which he won and served in the Senate for two consecutive terms. He won a seat in the House of Representatives in 2022 after the expiry of his third term in the Senate. 

MB BOTTOM-LINE: I don’t know that Mr. Recto is the perfect person for the job, but it’s interesting to note the complete lack of negative sentiment about his appointment. Maybe that’s a function of his family’s long-standing political connections, and in particular, of his relationship with the current Speaker of the House of Representatives, Martin Romualdez. It probably helps that he has a resume with just enough business and economic background to pass the smell test. In a related move, President Marcos appointed Mr. Diokno to a vacant seat on the Monetary Board of the BSP, which is the body that oversees interest rate decisions.

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