MANILA - After more than a year of serving as chief of the National Economic and Development Authority (NEDA), Ralph Recto is leaving the agency "to explore elective opportunities."

The former senator will resign from his post effective August 16, NEDA said in a statement. It added that Recto would hold a press conference on Wednesday to formally announce and offer details on his resignation, which according to official sources, has been accepted by Malacañang.

Recto was appointed by President Arroyo as socioeconomic secretary and director-general of NEDA in July 2008 after he lost in the 2007 senatorial elections. He replaced Romulo Neri, who became the head of the Commission on Higher Education and later, the Social Security System.

His stay as NEDA chief was the second shortest, next to Institute of Corporate Directors Chairman Jesus Estanislao's. The latter sat as NEDA director-general for 3 months before he was appointed as finance secretary in 1989.

A former member of the Lakas Party, Recto was not decided on running for an elective post earlier, saying this would be determined come October or November.

He, however, turned to be the first Cabinet official to tender resignation for the 2010 national elections, although there were reports that other Cabinet secretaries are also interested in seeking new office.

Controversies

Just like Neri--who was dragged in the NBN-ZTE scandal for preferring not to disclose President Arroyo's alleged involvement in the hasty approval of the project in 2007--Recto was not spared from controversies.

Some speculate that a growing rift with Energy Secretary Angelo Reyes could be behind Recto's sudden resignation. Others say his stand against certain provisions in the $1.2-billion Laiban Dam deal between the government's Metropolitan Waterworks and Sewerage System and diversified conglomerate San Miguel Corp. put him in bad light with Malacañang.

Recto has been vocal against the continuous increase in domestic pump prices of petroleum products, insisting that prices were overpriced and calling for a review of the oil deregulation law. Reyes castigated Recto for stepping into his turf and described his statements on oil prices as part of early political campaigning to redeem the vote of confidence of consumers that he lost when he authored the unpopular Value-Added Tax Reform Law when he was still senator.

On the Laiban Dam project, Recto was particularly against the take-or-pay provision in San Miguel's proposal, which he said, could jack up water prices in Metro Manila since consumers will have to pay for products or services whether or not these are used.

Apart from these, Recto also came under fire for giving out economic forecasts that directly contradicted those of Finance Secretary Margarito Teves.

For instance, Recto said on March 24 that the country's budget deficit could reach as high as about P250 billion in 2009, which Teves vehemently denied the following day, saying the deficit would stay at the previous target of P177.2 billion. Three months later, the government raised its deficit ceiling to P250 billion, just as Recto had projected.

Democratic

But amidst the controversies, Recto's colleagues think highly of him.

NEDA assistant director-general for infrastructure Ruben Reinoso, for one, said he likes Recto's democratic management style. He said Recto always gets people's points of view before he sells his own.

When he faces legislators to seek budgets for infrastructure projects, Reinosa said Recto is able to communicate their objectives in a way that is easily understood by people.

Before submitting his letter of resignation, Recto met with World Bank country director Bert Hofman to discuss additional funding for government projects and programs. - Judith Balea, abs-cbnNEWS.com