Marcos jewels could be sold after court rules 'ill-gotten'

Filepic shows a presidential commission on good goverment (PCGG) official showing at the Central bank headquarter in Manila, a tiara inlaid with diamonds and South Sea Pearls from a collection seized by the government from former first lady Imelda Marcos in the late 1980s. A Philippine court has ruled that one of three jewel collections seized from former first widow Imelda Marcos was ill-gotten, potentially paving the way for a mega auction, officials said January 14, 2014. AFP

MANILA, Jan 14, 2014 (AFP) - A jewellery collection owned by former first lady Imelda Marcos was "ill-gotten", a Philippine court has ruled, potentially paving the way for an auction of millions of dollars worth of seized treasures.

The anti-graft Sandiganbayan court decided on Monday that the Malacanang Collection, the smallest of three confiscated from the Marcos estate and worth some $150,000, was rightfully owned by the government.

"Partial judgement is hereby rendered declaring the pieces of jewellery, known as the Malacanang Collection, as ill-gotten, and are hereby forfeited in favour of petitioner Republic of the Philippines," read the 33-page ruling released Tuesday.

It is one of three collections seized from the Marcos estate, including a 60-piece set featuring a 150-carat Burmese ruby.

The other two collections are already in government hands, but the ruling is significant because previous attempts to auction off the entire haul have been derailed by legal issues relating to the Malacanang pieces.

Officials said the court ruling on its forfeiture meant that an auction could now proceed.

An assessment made by Christie's in 1991 put the value of three collections at up to $8.5 million dollars, though more than two decades on it is likely to be substantially higher.

The pieces in the smallest collection were seized from the Malacanang presidential palace after the 1986 "people power" revolution ended the two-decade regime of dictator Ferdinand Marcos.

He died in exile after fleeing to Hawaii with his family.

Imelda was known for her extravagant lifestyle and love of jewels, art and shoes, and the Marcos family still stand accused of stealing billions from state coffers.

The Philippine government has said it has so far recovered about $4 billion of an estimated stolen wealth of $10 billion, but no one from the Marcos family has been convicted.

The government has long said it wanted to put the jewellery on public display or auction it off to raise funds for its poverty alleviation programmes.

But the Marcos family has tried to block the government from claiming the treasures, and had fought the seizure in court.

Monday's judgement could still be appealed. However, the Presidential Commission on Good Government, the agency tasked by the government to go after the fabled Marcos wealth, welcomed the decision.

"PCGG is of course pleased," commission chairman Andres Bautista told AFP. "This is another victory for the Filipino people."

He said he would confer with President Benigno Aquino to make a final decision on what to do with the jewels, which are currently locked in a vault at Manila's central bank.