MANILA, Philippines - The Social Security System (SSS) could have earned at least P198.1 million in additional income last year if only it was able to rent out its idle assets worth P17.956 billion, including more than 100 unused condominium units.
But instead of raking in funds, the Commission on Audit (COA) found that the agency is incurring fixed costs or expenses like condominium dues, electricity, repairs, maintenance and water.
State auditors, in a 2014 report released Thursday, said allowing the properties to just lie there deprived the SSS of additional funds which might have contributed to the social protection and benefit funds for its members and beneficiaries.
Records show that SSS idle properties include 102 condominium units in seven condominium buildings, 44,000 square meters of store or office spaces, 16 houses and 169 parking slots.
The COA report added that audit teams conducted an ocular inspection of some of the properties at the 15-story Pryce Tower condominium in Davao City last March 9 to 14 and found that SSS owns 15 units in the building – three on the 7th floor, seven units on the 10th, four on the 14th and one on the 15th. The units, with a total floor area of 2,524.15 square meters, were all acquired in 2000 through a stock to property swap.
Because of its prime location, the units could have commanded high rental rates, state auditors noted, adding that only one of the units was rented out.
In 2014, the COA report said Pryce Tower commands a rental rate of P325 per square meter, which could have earned SSS at least 9.844 million annually.
State auditors recommended that the SSS require its AMD to develop sales and marketing strategies to earn rentals from the idle or unoccupied properties or to consider the immediate sale of non-marketable properties to recover its investment.
The proceeds from either of the options, they added, could be used as additional funds.
In response, SSS officials told COA that it would pursue sales and marketing strategies including advertising and the posting online of properties available for sale or lease.
The SSS would also participate in the housing fair of the Housing and Urban Development Coordinating Council (HUDCC) for possible inclusion of its condominium units.
“The disposal of some big ticket items through public bidding will be conducted by AMD. The disposal of residential/office condo units will be conducted through public bidding as well,” the SSS said.