Philippines: Tissue paper tsunami, ghost pensions, $5.6 million in 'bonuses' drain SSS, in fresh challenge to President Marcos Jr

saidManila: State auditors have uncovered a tissue paper tsunami and ghost pensions at the state-controlled Social Security System (SSS), local media reported on Monday (December 8).

The Commission on Audit (COA) exposed shocking mismanagement at the SSS in 2024, where a staggering ₱13.195 million (about $225,000) was squandered on 143,424 rolls of tissue paper — enough to overwhelm storage facilities and exceed two months' needs by a massive margin.

This procurement blunder left 116,046 rolls stranded at the supplier's warehouse under a mere verbal agreement, devoid of formal documentation or policy safeguards, highlighting SSS's reckless planning.

State auditors flagged it as a textbook case of wasteful spending that could have funded two months' pensions for 2,000 retirees or funeral benefits for 650 deceased members,​ GMA network's Maki Pulido reported in “24 Oras”.

Worse still, COA uncovered ₱24.811 million in "overpayments" to long-deceased pensioners, exposing gaping holes in SSS's financial controls and threatening the pension fund's very survival.

Mechanisms to monitor payments proved woefully inadequate, allowing "ghost" beneficiaries to siphon public funds.

In a cruel irony, the same audit revealed ₱2.833 million in underpayments for funeral benefits across 293 claims, stemming from botched contribution calculations that shortchanged surviving spouses.

Adding fuel to the outrage, SSS disbursed ₱333 million ($5.6 million) in "Prestige Awards" — up to ₱50,000 per person for 6,525 officials and staff — without justifying how these tied to verifiable savings, as required by law limiting awards to 20% of generated efficiencies.

COA demands a detailed evaluation report or full refunds for these unsubstantiated cash prizes, underscoring a culture of unaccountable perks amid public hardship.

These SSS lapses echo wider 2024 COA critiques: the Office of the Vice President (OVP) defended against wastage claims while slashing security staff; the Department of Public Works and Highways (DPWH) botched ₱138 billion in projects.

The agency was established by the Social Security Act of 1954 and has since undergone various amendments to expand its coverage, benefits, and sustainability measures, including the most recent Republic Act (RA) No. 11199, also known as the Social Security Act of 2018.

As SSS members and Filipino taxpayers await answers from the SSS management, question how such fiscal follies persist when pensioners scrape by linger.

It remains to be seen whether accountability would finally wipe clean these stains on public trust.