Smuggled Bugattis Fetch Over P205 Million for Philippine Government

MANILA, Philippines – The government has turned two smuggled Bugatti Chirons at the center of a high-profile 2024 smuggling case into more than P205 million in public revenue. Finance Secretary Frederick Go on Wednesday, July 29, led the turnover of P205.02 million in proceeds from the Bureau of Customs (BOC) following the negotiated sale of the two ultraluxury sports cars. Elite Garage Corporation emerged as the lone bidder during negotiated sale proceedings held on March 26, offering P101.51 million for the blue 2017 Bugatti Chiron and P103.51 million for the red 2019 model. The sale came only after five failed public auctions conducted between September 2024 and February 2026 attracted no qualified bidders, followed by an earlier negotiated sale that didn’t push through. “After nearly two years, we have finally completed the sale of these forfeited vehicles, ensuring that every asset under our stewardship is properly managed and generates value for the Filipino people,” Go said in a statement on Wednesday. The proceeds will be remitted to the Bureau of the Treasury, while the sale also frees the government from the cost of storing and maintaining the vehicles. Customs Commissioner Ariel Nepomuceno said the government’s work doesn’t end with the seizure of smuggled goods. “The turnover of these forfeited assets shows that our work does not end with seizure or forfeiture. Ang tunay na layunin natin ay tiyakin na ang mga nakukumpiskang smuggled goods ay nare-recover at nako-convert into public funds para sa mga pampublikong proyekto. (The true objective is to ensure that confiscated smuggled goods are recovered and converted into public funds for public projects),” he said, adding that the agency continues to livestream public auctions, disposition proceedings, and condemnation activities. Must Read How smuggled ultraluxury Bugatti Chirons expose flaws in LTO Ultraluxury cars smuggled in 2022 The two Bugattis drew public attention in early 2024 after the BOC launched a search that ended with their owners voluntarily surrendering the vehicles. The Chirons are among the world’s rarest production cars, with only 500 units manufactured globally between 2016 and 2022. Each carries an estimated value of around P165 million. Rappler’s investigation at the time found that the vehicles appeared to have entered the country using undervalued customs documents before eventually being registered with the Land Transportation Office (LTO) despite multiple irregularities. (READ: LTO’s old IT system enables fraud, and motorists pay more for it too) Documents reviewed by Rappler showed that while the Bugattis were estimated by Customs to be worth around P165 million each, sales invoices submitted for registration listed each vehicle at only P1 million. Customs payment records also showed only about P24.7 million in customs duty was paid, far below estimates that total duties and taxes should have exceeded P160 million. Rappler’s investigation also found that the vehicles were registered through the LTO’s older Stradcom information system instead of the newer Land Transportation Management System or LTMS, raising questions about weaknesses in audit trails and verification procedures. Authorities also examined the accreditation of the importer after investigators found it lacked the required warehouse and showroom. Broader asset disposition drive The Bugatti sale is the latest in a series of transactions as the Department of Finance seeks to unlock value from government-owned and forfeited assets. Earlier this month, the government completed the sale of 24 condominium units and 21 parking slots at the Atrium of Makati for P1 billion to Sanpiro Realty Development Corporation. Finance officials likewise described the transaction as part of a broader effort to convert underutilized government properties into revenues that can finance priority programs. That sale pushed collections of the Privatization and Management Office to P1.87 billion in the first half of 2026 alone, matching its total collections for all of 2025 and already reaching about two and a half times its full-year 2026 collection target. The Privatization Council has also approved new rules allowing more flexible methods to dispose of state assets, including the acceptance of unsolicited offers for properties that have attracted little market interest. – Rappler.com