Social Security holds more than 260,000 vehicles stored as assets reclaimed from companies, self-employed individuals, or professionals who are behind on social contributions. From cars and motorcycles to vans, trucks, and boats, these vehicles are intended to be used by the treasury to recover overdue debts. Yet, a large portion of these seized vehicles are older than a decade, and they tend to sit in warehouses for years while carrying ongoing storage costs. Often, by the time they reach auction, many have little value left.
These patterns expose a lack of initiative to start auction procedures and indicate low effectiveness, a view echoed by the Court of Accounts after its operational audit of how property and rights seized by the Social Security General Treasury are managed. The audit notes serious flaws, such as confiscated assets appearing on lists without being physically present in the designated warehouses when they should be.
The Constitutional Court’s report, issued this Tuesday, goes beyond the administration of seized vehicles and covers all lien and auction processes. It reveals a chain of failures that hinder the collection of unpaid receivables: asset files from Enforcement Collection Units show doubtful receivables with meaningful variation in 2021, ranging roughly from one-third to more than three-quarters of assets in two Madrid province deposits, signaling low efficiency in enforcing certain asset freezes. The assessment highlights the impact of gaps across the asset chain on the ability to recover debts.
Over 3.5 million seized units
When a debtor fails to settle debts or falls behind during voluntary or execution periods, the responsible agency must track the debtor’s assets and seize what is necessary, while respecting legally protected properties. The next step is alienation, which can occur through regular auctions, tenders, or direct sales.
In fiscal year 2021, the Social Security General Treasury reported 264.5 million euros recovered from embargoed accounts, plus 53.3 million tied to tax refunds and 15.1 million from sale auctions of seized assets.
The Court of Accounts first identified a major issue: there is no centralized database detailing confiscated assets, their conservation status, value, and location. This shortcoming affects more than 3.5 million units seized—movable and immovable property, economic rights, pensions, social benefits, and current accounts.
As of 31 December 2021, the inventory showed 558,649 assets seized, with a notable share consisting of vehicles and urban real estate as outlined in the court’s findings.
Assets listed but no longer available
Part of the report focuses on warehouses in Coslada and San Martín de la Vega, both in Madrid, where asset controls proved weak. Some items on the lists were not present in the actual depots, and some items were extremely old and not destroyed, resulting in wasted expenditure. Unidentified goods also complicated efforts to locate and sell assets.
The report also notes uneven prices paid for transferring seized vehicles to warehouses. Transportation costs for moving cars, motorcycles, and trucks by road are substantially higher in Barcelona than in Madrid, with Valencia costs closer to those levels.
The Court of Accounts describes the current face-to-face auction system as outdated, especially when compared withElectronic auction options used by other public bodies such as tax administrations or the judiciary. In-person bidding is often less competitive, and online bidding options are not fully leveraged. The most efficient method, according to the report, is to prioritize accounts receivable because they offer the fastest way to secure collections.
Recommendations
The Court of Accounts urges Social Security to tighten control: implement a central inventory of all seized assets with accurate details on valuation, location, and condition.
It also recommends removing vehicles that exceed a reasonable storage age from depots and accelerating public auctions for assets that have sat for more than two years. This shift would enable faster auctions and better use of storage space. Additional resources should be directed toward finalizing the foreclosure of checking accounts, and electronic auctions should be introduced to modernize the process.