Two cabinet ministers in the Philippines have resigned after being linked to alleged graft over flood-control projects, as the government of President Ferdinand Marcos Jr grapples with the fallout of the mounting scandal that has undermined investor confidence and economic growth.

Executive secretary Lucas Bersamin and budget and management secretary Amenah Pangandaman, stepped down late on Monday “after their departments were mentioned in allegations related to the flood control anomaly currently under investigation”, according to presidential spokesperson Claire Castro. Both have denied accusations of corruption. 

The resulting cabinet reshuffle also led to the appointment of a new finance chief, Frederick Go, who was previously special assistant to the president for investment and economic affairs.