The Social Security System is facing fresh scrutiny after government auditors questioned its purchase of more than 143,000 tissue paper rolls, calling attention to oversized procurement orders and the lack of storage for the bulk of the items.
Details of the transaction appeared in the Commission on Audit’s latest annual report, which noted that most of the tissue rolls never even reached SSS facilities. COA said “the supply exceeded the agency’s two-month requirement; and a total of 116,046 rolls remained at the supplier’s custody without any agreement due to lack of policy on procurement of supplies and equipment.”
A portion of the stock stayed with the supplier under what auditors described as an informal setup. “Further verification with the supplier revealed that the arrangement with SSS was based solely on a verbal agreement, without any support documentation or formal memorandum of understanding,” the report stated.
The agency purchased 143,424 rolls in 2024 for P13.195 million. COA pointed out that the amount could have provided pension support to about 2,000 beneficiaries or covered funeral assistance for hundreds of deceased members.
Apart from the tissue procurement, the same audit report flagged a separate issue involving a shortfall in funeral benefit payments. COA found “deficiencies in the processing and payment of funeral benefits resulting in the underpayment of benefits by P2.833 million, potentially affecting the entitlements of surviving legal spouses of deceased members: Underpayment of P2.898 million for 293 out of 1,584 sampled claims due to incomplete computation of contributions.”
Another observation focused on pension payouts credited to individuals who had already passed away. According to the audit, “the overpayment of pension benefits to deceased pensioners amounting to P24.811 million highlights significant weaknesses in the SSS’ financial safeguards leading to loss and wastage of government funds while putting the viability of the pension fund at risk.” Auditors also said existing monitoring controls could not be verified as effective.
In addition, the COA examined cash rewards given to SSS personnel under the Prestige Award, which provided up to P50,000 each to more than 6,500 officials and employees, totaling P333 million. Monetary recognition, auditors reminded, shall be granted “only when the suggestions, inventions, superior accomplishments and other personal efforts result in monetary savings which shall not exceed 20% of the savings generated.”
COA directed the SSS to present an evaluation report explaining how the incentives were computed, or refund all cash rewards that could not be justified.
