COA flags SSS for P13-M purchase of 143k tissue paper rolls in 2024

The Commission on Audit (COA) has flagged the Social Security System (SSS) for its purchase of 143,424 of tissue papers worth P13.195 million in 2024 that showed indications of poor planning.

According to Maki Pulido’s report in “24 Oras” on Monday, state auditors said the number of tissue paper rolls procured was beyond the two months’ worth of supply that the SSS needed, and could not fit into the SSS' storage facilities.

“... That 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,” the COA’s annual audit report on the SSS stated.

“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,” it added.

The audit body also noted that the procurement of hundreds of thousands of tissue paper rolls was not planned well.

The amount used to purchase the 143,424 rolls of tissue paper could have benefited 2,000 SSS pensioners or funeral benefits for 650 dead members, the report said.

In the same annual audit report, the COA also cited almost P3 million in underpayment of SSS funeral benefits.

“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,” the COA said.

It added that some deceased pensioners still received their pension benefits from the SSS, resulting in an overpayment of P24.811 million.

“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. Moreover, adequacy and effectiveness of mechanisms in place to monitor pension payments could not be ascertained,” state auditors pointed out.

Prestige Award

They added that the SSS gave cash incentives of up to P50,000 each to its 6,525 officials and employees totaling P333 million through the Prestige Award.

State auditors said monetary awards 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.”

The COA ordered the SSS to submit their evaluation report on how the cash incentives were determined, otherwise, the SSS must refund all “unsubstantiated” cash incentives.

GMA Integrated News is reaching out to the SSS for its comment on the COA's audit findings. — Vince Angelo Ferreras/JMA, GMA Integrated News