Dear Editor,
I write as President of The Association of Private Security Organizations on the recent $8m theft/fraud by the employees of Republic Bank (NBIC). We note also frauds at other high profile finance and insurance companies
My purpose for going to press and informing business people in particular, and the nation, is because of serious problems members of the Association have had with various banks in what is referred to as Night Deposits, where money bags are used to deposit monies on behalf of various clients.
It is known that when banks realize employees are stealing, they transfer that employee or quietly dismiss them, but it is known that all levels in the banking industry have been involved in fraud/ thefts, even most senior employees, who would be termed white collar criminals. The cover-up is what is worse, to save face, and not reality. In this case because the sum is so large Republic Bank (NBIC) has called in the police.
Several members of the association have had cases whereby bags cannot be accounted for or tampered with, and we found by investigation that the banks do not have systems to prevent this. Because of the business association of various banks, some members of GAPSO did not wish to go public but to discuss with the Bankers Association the problems we face, the observations we have noted and recommendations to ease if not end the problem. It took several months to get to meet with the association, and several more months to get a reply, which showed no care to address the problem with night deposits. Instead of dealing at the Bankers Association level, we were told it has been left with the various banks to deal as they think best with the recommendations and observations.
Problems with night deposits are:
1. Some branches do not have cctv camera to record deposits and time. In the east coast, Republic Bank (NBIC) camera covers the ATM machine but not the night deposits, even though ATM gives a receipt on deposit and withdrawals. We suspect the reason for not placing the camera on the night deposit is to cover themselves so that in the event of a problem, they do not have to repay customers. In an investigation involving a missing bag, the police indeed asked them why place the camera on the ATM which issues receipts and no camera on the Night Deposit chute which issues no receipts. They could not answer.
2. No bank, as far as we know, has a system to record money bags as they enter the chute. I had suggested in a meeting with our executives and the Bankers Association that a digital device be installed, which would record the number of bags as they enter the chute and slide down. It could be like a bar code as done in supermarkets. It could be the recording device that tracks all deposits.
3. There are obviously dishonest people in the banking system, as there are in any other industry, to be fair, there may be groups in the banks who conspire together and manipulate bags, sometimes tampering with the stitches, and sometimes stealing bags of money. A senior detective told me that they cannot arrest bank staff because of some words by a judge in some case. This is giving licence to bank employees to steal and put security officers and other customers who deposit money via that system into trouble. The bank refuse to allow security company investigators to investigate their employees who handle money bags, and we were shocked that they even refused the police in several areas, by telling them that they have to write the Bank’s H/Q for permission, which could take weeks and months. But since when do the police need the bank to give permission to question their employee(s). I personally vented my frustration on this to the crime chief, and CID Head of the division. I suggested the police wait outside the banks and as the employee(s) leave, invite them to the station, police style. But no instead they arrest the security officers, lock them up, embarrass them, and even try to get them to confess and then put them on expensive bail. But the investigation is stymied because the police it appears are afraid of the banks.
4. In the west coast, we know of a situation whereby we requested that an employee of the client accompany us just across the road to witness the deposit and record the time. Realizing this new trend of deposit, the employees of the bank on a Sunday decided to open the bag, remove the money, steal the largest amount, and tamper with the stitches, then re-stitch the bag with similar colour thread, but which could have been done only with an open bag. Incidentally, this is one of the banks with the most loss and tampering of night deposit bags.
We of the association, ask that the police commissioner intervenes, establish a select group of dynamic investigators, invite security services and any customer of any bank that have had such experience involving tampering with money bags, disappearance of bags, amounts not accounted for, etc., with a view to finding the culprits and bringing charges against them.
We of the GAPSO also ask that the Bank of Guyana take note of our above concerns and recommend and establish rules or guidelines by which banks must establish systems to account for bags deposited in the night deposit system. One recommendation is that each firm that does night deposits have their name and code imprinted on their bags.
We ask why the banks refuse to accept bags during normal working hours. In this way they would sign for the number of bags they receive, and check to see if they may have been tampered with. We believe that maybe, they just do not desire such a system because they do not wish to give an account.
Yours faithfully,
Roshan Khan
President
GAPSO
