"I could not say no to the President," said Camacho, who had earlier declined the post.
The President made the surprise announcement before the second annual Philippine Business Outlook forum at the Peninsula Manila Hotel in Makati City.
Introducing her "topnotch economic team" led by Finance Secretary Alberto Romulo, Mrs. Arroyo said, "I think there are no other members of the Cabinet here except somebody who has not yet taken his oath, our new secretary of energy, Mr. Lito Camacho."
Sources said the Harvard and La Salle-educated Camacho knew Tuesday night that he was going to be asked by the President about his acceptance of the post during the business forum.
Prior to accepting the top energy post, Camacho was managing director and chief country officer for Deutsche Bank AG Manila, a post he held since April last year.
Camacho was chosen by Mrs. Arroyo from a "short list" which included former Taguig-Pateros Rep. Dante Tinga and Energy Undersecretary Cyril del Callar.
Camacho, who had just returned to the country after a business trip, was the personal choice of the President for energy secretary. Reportedly because of the low compensation, Camacho politely declined the post and was named Monday night chairman of the Development Bank of the Philippines (DBP).
Prior to his stint as the country managing director of the Deutsche Bank, Camacho was connected with Bankers Trust Inc. for 20 years. His last assignment with the firm was as managing investment director for Southeast Asia, including India.
An energy secretary is expected to have a good working relationship with the National Power Corp. president since he (the energy chief) will also be the chairman of Napocor.
A common denominator between Camacho and Napocor chief Jesus Alcordo is their both having been once connected with the Aboitiz group.
According to sources, Camacho can also serve as DBP chairman while serving as energy secretary.
However, Camacho is reportedly not inclined to accept the DBP chairmanship if he will sit as energy chief.
Mrs. Arroyo said last Tuesday the prospect of a reduction in his income at first "discouraged" Camacho from accepting her offer.
"It’s true, there are some who really live off their sweat and intellect and they have, you know, property income and they can afford so," she said.
"So it’s true that we lose some good men because of that but on the other hand, we are also able to ask some good men," she said.
The Preisdent did not say how she was able to make Camacho change his mind into finally accepting the energy portfolio.
"And now, with Mr. Camacho agreeing to be secretary of energy, we only have one Cabinet position left unfilled," she added.
The President cited the vacancy at the Department of the Environment and Natural Resources, saying "I intend to leave it unfilled for quite some time because the contest is very keen and anyway we have a strong undersecretary and bureau directors."
The President was obviously referring to the bids of former Isabela Rep. Heherson Alvarez, Kompil 2 leader Nicanor Perlas and incumbent Environment Undersecretary Josemari Gerochi.
"But outside that (the DENR vacancy) we have created a topnotch team, especially a topnotch economic team," she reassured the business community.
But she failed to mention the vacancy at the Department of Science and Technology created by the resignation of Secretary Felimon Uriarte Jr.
Perhaps to explain the unfilled Cabinet posts, Mrs. Arroyo reminded the businessmen that her five-week-old administration did not have the luxury of a transition after she assumed the presidency last Jan. 20 after a military-backed civilian uprising.
"Usually six weeks after election day, and into inauguration day and you have another 180 days to give the incumbent president to put a Cabinet together and flesh out a platform of government. In our new administration, there was no six weeks between elections and oathtaking. Friday the military and Cabinet and on Monday, we were at work with a working Cabinet," she pointed out.
"We certainly hit the ground running," she said proudly. – Marichu Villanueva, Donabelle Gatdula