| I REFER to the article, 'Missing millions: 48 years' worth of savings' (The Sunday Times, June 24), about the plight of St John's Home for Elderly Persons.
As an auditor, I would like to propose the following measures to minimise such incidents:
Banks to offer a value-add service, for a charge, of monitoring unusually large payments to third parties by an organisation, relative to average payments. The banks could call at least two designated senior managers when significant funds are approved for withdrawal by third parties. The threshold of 'significant funds' varies according to the size of an organisation, so this can be set by the management.
As the threshold can be circumvented via multiple payments below the limit over a few days, the banks may have to review total payments over a few days.
Use of Internet banking for payment, in view of added security features like the use of tokens in addition to passwords.
In the case of St John's Home, internal controls appear to be in place, but the controls were overridden by fraud - cheque signatory forgery.
Banks can therefore assist to be the watchdogs for a nominal fee, which is justifiable for huge sums like the $3.88 million of St John's Home.
Tan Saw Bin (Ms)
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