Diokno appointed as new Bangko Sentral chief

MANILA, Philippines (Update 4 11:15 p.m.) — President Rodrigo Duterte appointed Budget Secretary Benjamin Diokno as the new governor of the Bangko Sentral ng Pilipinas.

Presidential spokesperson Salvador Panelo confirmed Diokno's appointment in a text message late Monday night. He said Diokno would assume the post as new central bank chief on Tuesday, March 5.

Presidential spokesman Salvador Panelo: The Palace wishes to inform the appointment of Department of Budget and Management Secretary Benjamin Diokno as the new Governor of Bangko Sentral ng Pilipinas, succeeding the late Governor Nestor Espenilla, Jr @PhilippineStar@PhilstarNews

— Alexis B. Romero (@alexisbromero) March 4, 2019

Panelo says Pres. Duterte announced Diokno's appointment as BSP chief during the start of the 35th Cabinet Meeting on Monday, March 4. @PhilippineStar @PhilstarNews

— Alexis B. Romero (@alexisbromero) March 4, 2019

Diokno replaces former Bangko Sentral chief Nestor Espenilla Jr. who passed away last February 23 after battling cancer.

READ: BSP chief Espenilla passes away at 60

'Seasoned technocrat'

Finance Secretary Carlos Dominguez III said Diokno brings together the "elusive combination" of seasoned technocrat and professional manager which will contribute to his stewardship of Bangko Sentral as its next governor and chairman of the Monetary Board.

"He knows the inner workings of government and industry, and has repeatedly demonstrated the ability to run a large, complex organization with intellectual leadership and a steady hand," he said.

Diokno joined the Duterte administration on June 30, 2016, when he was appointed as secretary of the Department of Budget and Management.

He had served in the DBM as secretary from 1998 to 2001 and undersecretary from 1986 to 1991 when he helped craft the fiscal decentralization portion of the Local Government Code.

"His policy expertise and research contributions extend to various areas of public economics, such as the structure and scope of government, tax policies and reforms, public expenditure management analysis, fiscal decentralization, national budget and public debt among other topics," Dominguez said.

Rep. Rolando Andaya Jr. (Camarines Sur) had recently hurled accusations against Diokno of making an "insertion" of P75 billion in the proposed 2019 budget of the Department of Public Works and Highways without the agency’s knowledge as well as his relatives allegedly receiving favors for government projects. 

Diokno had denied all these allegations.

READ: Diokno to Andaya: No ‘illegal cash advances’ for infra projects under Duterte

Malacañang: BSP in good hands

Malacañang in a statement thanked Diokno for his services as DBM secretary.

"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," Panelo said.

"We wish Sec. Diokno all the best in his endeavors as the new chief of the country’s central monetary authority. With him at the helm of the Bangko Sentral ng Pilipinas, our banking institutions are in good and competent hands."

Panelo: With Diokno at the helm of the Bangko Sentral ng Pilipinas, our banking institutions are in good and competent hands @PhilippineStar @PhilstarNews

— Alexis B. Romero (@alexisbromero) March 4, 2019

Diokno graduated with a degree in Public Administration in 1968 at the University of the Philippines Diliman. He also earned post-graduate degrees in Public Administration in 1970 and Economics in 1974 from the same university.

He also earned a Master of Arts in Political Economy in 1976 from the Johns Hopkins University in the United States and a Ph.D. in Economics in 1981 from the Maxwell School of Citizenship and Public Affairs at Syracuse University. — with Alexis Romero