Diokno wants next budget chief to be a nonpolitician
MANILA, Philippines — Outgoing Budget Secretary Benjamin Diokno, who President Rodrigo Duterte appointed as the new Bangko Sentral ng Pilipinas governor, said on Wednesday he prefers a nonpolitician to succeed him as head of the Department of Budget and Management.
"I hope the next DBM Secretary is not a politician," Diokno said during his last press conference as budget chief. "Not a politician or ex-politician.”
Diokno, 70, replaces the late Nestor Espenilla Jr. who passed away last February 23 after battling tongue cancer.
Central bank watchers had expected an insider or someone from the banking community to succeed Espenilla.
Known for his expansionary fiscal policy stance as budget chief, all eyes are now on how Diokno will face a tough balancing act of reining in soaring prices without hurting the economy amid a softer global outlook.
In a commentary, London-based Capital Economics said Diokno's appointment as central bank governor "raises questions about the politicisation of the BSP."
While Diokno himself is not seen as politically aligned, the think tank said his appointment is being seen as “a move to free up the position of Budget Secretary for a Duterte ally.”
"There is a risk that markets ultimately become less confident in the BSP’s independence and willingness to tackle inflation and financial risks," Capital Economics said.
Asked to comment on rumors that House Speaker Gloria Macapagal-Arroyo, an old friend of Duterte, is set to take the helm of DBM, Diokno replied: “That's speculative.”
A BSP governor also sits as chairman of the Monetary Board, heads the financial intelligence unit Anti-Money Laundering Council and occupies ex-officio seats in various national government agencies and state-run corporations. — Ian Nicolas Cigaral
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