THE government’s second public auction of five seized luxury cars once again fetched no bidders, opening the possibility for the Duterte administration to resort to destroying these vehicles.
Finance Secretary Carlos G. Dominguez III told reporters the government may consider destroying these vehicles.
“Destruction is an option,” said Dominguez, who ordered the resumption of government’s disposal of luxury vehicles seized by the BOC through public auction.
Previously, smuggled vehicles were destroyed instead of being auctioned off as the BOC followed President Duterte’s directive.
Duterte has said in 2018 he wanted to do away with the public auction of smuggled luxury cars as he alleged that smugglers take advantage of the auction to buy the vehicles at a cheaper price.
But it appears no one took advantage of the auction: the second last Monday received no bids. This prompted the Inter-Agency Auction Committee to declare a failed bidding for each of the five cars.
It was a déjà vu of sorts: the first auction a month ago of the same seized vehicles also resulted in the declaration of failed bidding due to the absence of bidders.
“In today’s auction, again there was no bidder that registered or even manifested interest in this public auction today. So in that case, I move that this second auction be declared as a failed bidding,” Customs Deputy Commissioner Atty. Edward James Dy Buco said during the livestreamed event.
A successful auction would haved bagged the government at least P29.087 million.
Deputy Treasurer Erwin D. Sta. Ana said they would be seeking their principals’ guidance on the next steps that the auction committee will take regarding the cars. Sta. Ana said the options include negotiated sale or destruction of these vehicles following the two failed biddings.
Dy Buco said the Customs Modernization and Tariff Act (CMTA) allows the BOC to donate seized vehicles to other government offices for public use, However, he said this cannot be done in this case.
“Under the CMTA, under the rules, after the second failed bidding, the vehicles may be donated or given to public offices for public use. But inasmuch as these public vehicles are luxury vehicles, they cannot be utilized for public use,” Dy Buco said.
The most expensive luxury car that was up for public auction is the 2008 Ferrari Scuderia 430 with a floor price of P23.225 million.
Other vehicles up for auction were the 2001 Porsche Boxster with a floor price of P1.798 million; a 2011 Mercedes E220 (P1.492 million); a 2001 Mercedes SLK55 (P1.324 million); and, a 2001 Mercedes SLK350 worth P1.248 million.