All government ministries should have an internal audit team

I REFER to "AGO finds inadequate financial controls in agencies including HDB, LTA" (BT, July 26).

Many Singaporeans must have found the report disturbing reading; I did.

The Workers' Party MPs will press for answers in Parliament, but the key question is: how should the government address the issue of managing public funds effectively by preventing lapses?

There will be lapses due to many reasons and causes, some due to oversight and staff changes, others because of lack of care and coordination or proper handing over of duties. Lapses could also stem from lack of effective training, poor understanding of policies, disregard for controls and accountability, or plain incompetence and negligence of responsibility.

In the private sector, all public listed companies (PLCs) are required by law to have an audit committee and an internal audit team. Some ministries and statutory boards have businesses and operations comparable to or even bigger than some of the mega PLCs.

It would not be easy for the Auditor- General's Office to conduct regular and thorough audits to surface the shortcomings early and institute corrections. When the cycle of audits turns full circle, the AG would have taken years to return to and audit the same ministry. The government should ensure that all ministries have their own internal audit committee and internal audit teams.

For the sake of accountability and independence and to prevent familiarity of staff on assignment, each audit team based at the ministry should report to the AG, and there should be regular and periodic inter-ministry transfers or rotation of audit staff. By reducing financial losses due to oversight or non-compliance with standard operating policies, there would be sufficient savings to justify paying for a full internal audit team in each ministry.

Such a system is long overdue. It should be put in place the soonest possible.

Tan Kok Tim Singapore