CoA Chides SSS on ID Project

Manila Bulletin, August 22, 2006 | Go to article overview

CoA Chides SSS on ID Project


The Commission on Audit (CoA) has chided officials of the Social Security System (SSS) for spending P1.3 billion for an identification card system project which has failed to fully serve its objective of facilitating SSS transactions among members.

In its annual audit report, CoA noted that despite the huge expenses for the project, SSS was only able to process 20.6 percent of the targeted 35 million ID cards.

A team of state auditors led by Director Rosemarie Lacson Lerio disclosed that SSS has already spent a total of R1.3 billion for the ID card system which was contracted with the Ayala Systems Technology Inc. at a price of $37.8 million.

According to CoA, the amount represents 83.21 percent of the project's approved budget.

The SSS management had implemented the project for various purposes, foremost of which are the prevention of fraud and abuse in the members' availment of benefits and the improvement of SSS services.

With each card costing $1.08, the management had anticipated the production of 35 million over a six-year period.

"Although the disbursements for the project did not exceed the budgeted amount of $37.8 million, SSS has already used up 83.21 percent of the budget while ID cards produced are only 20. …

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