The Commission on Audit (COA) has questioned the Social Security System (SSS) over its procurement of 143,424 rolls of tissue paper worth P13.195 million, a transaction state auditors said was carried out through an informal verbal agreement and without adequate planning.

In its 2024 audit report released this month, COA found that the volume of tissue purchased went beyond the SSS’ allowable two-month supply limit.

Of the total purchase, 116,046 rolls were left with the supplier because the agency had no storage space—an arrangement auditors said had no written agreement and reflected the absence of clear procurement policies within SSS.

State auditors stressed that the transaction failed to comply with Presidential Decree No. 1445, which requires government agencies to safeguard public property from waste or improper use, and Section 28 of the 2024 General Appropriations Act (GAA), which restricts inventory purchases to quantities needed for two months.

COA said the large order, coupled with the reliance on a purely verbal deal, exposed government resources to unnecessary risks, including potential loss or deterioration of items kept outside SSS custody.

The report noted that the procurement was undertaken without sufficient planning and without considering warehouse capacity.

The commission urged SSS to strengthen its procurement processes, strictly adhere to inventory limits, and ensure all future transactions are supported by proper documentation and formal agreements.