The Commission on Audit reported that the Social Security System procured 143,424 rolls of tissue paper worth P13.195 million in 2024 even though the supply exceeded the agency’s two-month requirement and could not be accommodated in its storage facilities. Auditors said 116,046 rolls were left in the supplier’s custody because the transaction was based only on a verbal agreement and had no supporting documentation.
“… 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 report 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.”
COA said the amount used for the tissue purchase could have funded benefits for 2,000 pensioners or funeral assistance for 650 deceased members. The audit also found P2.833 million in underpayment of funeral benefits due to incomplete computation of contributions. Of 1,584 sampled claims, 293 were found to have underpayments totaling P2.898 million.
“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 report stated.
COA further reported P24.811 million in overpayment of pension benefits that continued to be released to deceased pensioners. “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 said.
The audit also noted that SSS granted P333 million in cash incentives to 6,525 officials and employees under the Prestige Award. COA said monetary awards must be given “only when the suggestions, inventions, superior accomplishments and other personal efforts result in monetary savings which shall not exceed 20% of the savings generated.”
SSS was directed to submit its evaluation of how the incentives were determined or refund all “unsubstantiated” cash awards.


