Ex-DBM secretary at center of flood control controversy lands top post at Islamic bank

Pangandaman consistently denied any wrongdoing and maintained that the DBM was strengthening safeguards against corruption

Former Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman has been appointed chairperson and chief executive officer of the Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP), marking her return to government service months after stepping down during the Cabinet reorganization.

The bank announced her appointment through an official statement welcoming Pangandaman as its new head, saying her leadership marks “the beginning of a new chapter” as the institution continues to strengthen Islamic banking, promote financial inclusion, and support sustainable development across the country.

Pangandaman is an economist and veteran public finance official who made history as the country’s first Muslim woman to serve as DBM secretary. Before leading the budget department, she also served as assistant governor of the Bangko Sentral ng Pilipinas (BSP) and held key positions in Congress.

Her appointment places her at the helm of the Philippines’ first and only Islamic bank.

The Al-Amanah Islamic Investment Bank of the Philippines is a government-owned and controlled corporation (GOCC) under the Development Bank of the Philippines (DBP). It is mandated to provide Shariah-compliant banking and financing services, with a focus on expanding financial inclusion among Muslim Filipinos and underserved communities. Unlike conventional banks, Islamic banking follows principles that prohibit interest and instead rely on profit-sharing and asset-backed financing.

Pangandaman’s appointment also revives public attention on the controversy that surrounded her tenure at the DBM over alleged irregularities in multibillion-peso flood control projects.

As budget secretary, Pangandaman headed the agency responsible for preparing, allocating and releasing government appropriations while flood control projects were implemented primarily by the Department of Public Works and Highways (DPWH). Public scrutiny intensified following allegations of duplicated appropriations, “ghost projects,” and questionable infrastructure spending.

Although her office became closely associated with the issue because of its role in the national budget process, no court, investigative body, or the Office of the Ombudsman has found Pangandaman criminally liable or established that she personally participated in corruption involving the flood control funds.

Throughout the controversy, Pangandaman consistently denied any wrongdoing and maintained that the DBM was strengthening safeguards against corruption. Under her leadership, the department implemented the New Government Procurement Act, expanded the use of the Project DIME digital monitoring system for infrastructure projects, and ordered the blacklisting of contractors linked to anomalous flood control projects through the Philippine Government Electronic Procurement System (PhilGEPS).

Her appointment to the AAIIBP signals a new chapter in her public service career, but it also places her back in the national spotlight as questions surrounding the government’s flood control spending continue to resonate in public discourse.

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