The state‑run Social Security System (SSS) was put under scrutiny after the Commission on Audit (COA) flagged a ₱13.195‑million purchase of 143,424 tissue‑paper rolls in 2024, citing indications of poor planning and procurement mismanagement.
In its 2024 annual audit report, COA noted the number of tissue rolls purchased exceeded the agency’s two‑month supply requirement. As a result, 116,046 rolls reportedly remained with the supplier because of a lack of formal agreement or documented arrangement, raising questions about inventory control and procurement procedures.
Auditors warned that the funds used for the tissue paper purchase could have otherwise supported more essential services—for example, pension benefits for roughly 2,000 retirees or funeral aid for some 650 deceased SSS members.
The COA also flagged additional financial irregularities within SSS: underpayments totaling ₱2.833 million in funeral benefits and overpayments amounting to ₱24.811 million paid to some pensioners who had already passed away. The audit raised concerns about weak financial safeguards and inefficiencies in benefit distribution processes.
State auditors also questioned the agency’s large outlay for employee incentives: in 2024, SSS reportedly disbursed as much as ₱333 million under the so‑called “Prestige Award,” granting up to ₱50,000 each to over 6,500 officials and staff—a move COA says may run contrary to rules linking such bonuses to actual savings generated.
“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,” COA said in its report.
As public criticism mounts, stakeholders are calling on SSS leadership to explain the procurement decision and strengthen internal controls to prevent similar wasteful spending.
Written by Diana Rose N. Evangelista, Insight PH
Diana Rose N. Evangelista, Insight PH is a dedicated campus journalist and contributor. Their insightful writing sparks meaningful conversations and keeps the community informed.
