COA flags SSS P13-M tissue paper deal
The Commission on Audit (COA) raised a red flag over the Social Security System’s (SSS) procurement of 143,424 rolls of tissue paper worth P13.195 million through a mere verbal agreement with a supplier, a transaction state auditors said was “undertaken without sufficient planning.”
In its 2024 audit report on SSS spending released this month, the COA said the procurement exceeded the agency’s two-month supply requirement, while 116,046 rolls were left in the supplier’s custody without any written agreement “due to the absence of clear policies on the purchase of supplies and equipment.”
The commission said SSS’ purchase did not align with the rules under Section 4 of Presidential Decree (PD) No. 1445 and Section 28 of the 2024 General Appropriations Act (GAA).
“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,” it added.
No supporting papers
Under the decree, the COA said, all government resources must be “managed, expended or utilized in accordance with law and regulations, and safeguarded against loss or wastage through illegal or improper disposition, with a view to ensuring efficiency, economy and effectiveness in the operations of government.”
The commission also noted that the arrangement with the supplier “was based solely on a verbal agreement, without any supporting documentation or formal memorandum of understanding,” which violates the fiscal responsibility principles under PD 1445.
Section 28 of the GAA, meanwhile, requires that inventories of supplies, materials, and spare parts “shall not exceed the agency’s two-month requirement.”
The auditors said they recommended that SSS strictly follow the two-month inventory limit beginning with the 2025 procurement cycle, and “exercise prudence” in using government resources by ensuring proper procurement planning and conducting a full inventory.
