Decades after recovery, Marcos-era assets deteriorating under PCGG care

December 9, 2025 | 7:00am

MANILA, Philippines — Decades after the state seized ill-gotten wealth from the Marcoses and their cronies, the government is failing to adequately preserve hundreds of millions of pesos’ worth of assets at the risk of losing value, the Commission on Audit reported.

In its latest audit, the Commission on Audit (COA) said properties “recovered, surrendered, and sequestered” by the Presidential Commission on Good Government (PCGG) were left vulnerable to unauthorized occupation, deterioration beyond normal wear, and lost market value.

State auditors found that P581.33 million worth of assets lacked basic safeguards such as security personnel, fencing, storage, maintenance, and updated appraisals.

Risks from lack of preservation

COA said the absence of proper planning and asset-preservation funding exposed recovered wealth to risks that undermine future disposition.

“The lack of proper planning for program implementation led to the failure to allocate a budget for asset preservation,” the commission said. “Consequently... assets were exposed to risks such as deterioration and unauthorized occupation.”

Auditors added that risks can complicate eviction proceedings, delay development, and result in lost government revenue.

Artworks, jewelry face deterioration. COA flagged the absence of proper storage for high-value artworks, making them susceptible to humidity, pests, dust and physical damage.

“Inadequate storage also increases the risk of theft, misplacement and unauthorized access,” it said.

Jewelry collections lacked updated appraisals, which could lead to misstatements of their true value and inaccurate financial reporting.

Some properties also carried unpaid real property taxes, which COA warned could lead to legal disputes or forfeiture—directly hampering PCGG’s mandate to recover ill-gotten wealth.

Below is COA’s summary of assets found at risk due to lack of preservation:

Lack of preservation planning. COA said that an internal review showed no preservation activities in the PCGG’s Project Procurement Management Plan. Despite risks identified, the agency did not request additional budget from the Department of Budget and Management.

Instead, its P23.52-million budget for the year was used for other operational needs, including inspections, legal counsel, travel, fencing projects, and system administration.

Underfunding. Auditors noted that the PCGG’s annual allotment has remained below P24 million for four years—far below the potential 10% allowed from proceeds of asset sales.

COA said the underfunding delays asset disposition and limits the government’s ability to preserve and maximize the value of recovered ill-gotten wealth.

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