Jamaine Punzalan

The Social Security System headquarters is seen in Quezon City on February 6, 2025. Jonathan Cellona, ABS-CBN News

Article (news)

Kaxandra Salonga

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px;display:block" width="960"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/176525426346920250206-social-security-systems-JC-9.jpg" style="width:960px" class="fr-fic fr-dib" width="960"/><span class="fr-inner" style="text-align:left">The Social Security System headquarters is seen in Quezon City on February 6, 2025. Jonathan Cellona, ABS-CBN News </span></span></span></div><p>MANILA — The Commission on Audit (COA) flagged the Social Security System (SSS) for procuring some 143,000 tissue paper rolls worth over P13 million, which exceeded its two-month requirement.</p><p>In its 2024 audit report, COA said some 116,046 rolls remained at the supplier’s custody “without any agreement due to lack of policy on procurement of supplies and equipment.”</p><p>“This situation indicates procurement activities that were undertaken without sufficient planning and without consideration of existing warehouse capacity, thereby posing risks of loss, damage, or deterioration of the stored items,” the report read.</p><p>It added that the “laxities” do not align with the rules under Section 28 of the 2024 General Appropriations Act (GAA) which states that the inventory of supplies, materials, and equipment spare parts to be procured “shall not exceed the agency’s two-month requirement.”</p><p>According to state auditors, the agency relied on a verbal deal with the supplier and had no supporting papers or memorandum of understanding, contrary to the requirements of Presidential Decree 1445, which mandates all government resources to be safeguarded against loss or wastage through illegal or improper disposition.</p><p>COA recommended that the SSS comply with the two-month inventory limit and improve procurement planning to align purchases with the agency’s storage capacity and operational requirements.</p><div><a href="https://www.abs-cbn.com/focus/01/12/17/social-security-system-quick-facts">Social Security System quick facts</a></div><div><br/></div><div><strong>UNSUBSTANTIATED BONUSES</strong></div><div><br/></div><p>The audit body also found that SSS disbursed P333 million in &quot;Prestige Awards&quot; of up to P50,000 per person to more than 6,500 officials and employees without justifying that the incentives were based on the employee’s savings generated from innovations, accomplishments and other personal efforts, as required by law limiting awards to 20 percent of generated efficiencies.</p><p>Prestige Awards are monetary incentives given to employees to recognize outstanding performance, innovations, or contributions that lead to efficiency gains.</p><p>“Moreover, other awards under the program were granted at a fixed amount of cash incentive regardless of the actual savings generated from the personal efforts recognized. These practices resulted in irregular and excessive expenditures, which are not allowed in audit,” the report read.</p><p>State auditors said the agency should provide an evaluation report justifying the awards and incentives or refund all unsubstantiated payments.</p><div><a href="https://www.abs-cbn.com/news/business/2025/8/19/sss-reminds-members-pensioners-to-be-vigilant-vs-scams-1713">SSS reminds members to be wary of scams</a></div><div><br/></div><div><strong>DECEASED PENSIONERS OVERPAID, SURVIVING SPOUSES SHORTCHANGED</strong></div><div><br/></div><p>Moreover, the audit found that some deceased pensioners continued to receive pensions, resulting in P24.811 million in overpayments, which COA said “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.”</p><p>In the same report, the agency was found to have underpaid SSS funeral benefits totaling almost P3 million, which state auditors said could potentially reduce the entitlements of surviving legal spouses.</p><p>It added that the underpayment for 293 out of 1,584 sampled claims was due to “incomplete computation of contributions.”</p><p>In response, SSS said the underpayments could have been caused by the following factors. </p><ul><li>Lump contributions that exceeded the maximum allowable number of contributions are not displayed in the members’ individual records</li><li>Contributions not displayed in the members’ individual records represent contributions made before the computerization of the system and are not yet posted by the SSS Processing Center</li><li>Unadjusted AMSC (Average Monthly Salary Credit) at the time of processing</li></ul><div><br/></div><p>COA urged the agency to settle the deficiencies in 293 claims and instruct processors to review Funeral Benefit applications to ensure the validity of claims.</p><div><a href="https://www.abs-cbn.com/news/business/2025/8/1/sss-increases-pensions-from-2025-2027-here-s-how-it-works-1020">SSS increases pensions from 2025-2027. Here’s how it works</a></div>

<p>The Commission on Audit (COA) flagged the Social Security System (SSS) for procuring some 143,000 tissue paper rolls worth over P13 million, which exceeded its two-month requirement.</p>

The Commission on Audit (COA) flagged the Social Security System (SSS) for procuring some 143,000 tissue paper rolls worth over P13 million, which exceeded its two-month requirement.

COA flags SSS procurement of P13-million tissue paper in 2024

News

Entertainment

Lifestyle

Sports

Metro.Style

More

Traffic

Manila

Horoscope

Nation

COA flags SSS procurement of P13-million tissue paper in 2024

Kaxandra Salonga

Published Dec 09, 2025 12:27 PM PHT

Read More:

COA

SSS

tissue paper

irregularity

audit

SSS bonus

SSS pension

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.