The Post Office should reintroduce physical records to prevent the theft of stamps because a computer failure means there is no way of knowing if they have been stolen, Auditor General Larry Dennis recommends. Computerisation was introduced in 2002, but a major failure in 2003 resulted in lost or corrupted data, with inadequate technical support, he reports.

A count of stock last year after the computer failure revealed ?a material number and amount of stamps were missing during the October month-end count. This shows that stamps could have been lost or stolen with little chance of detection?.

The computer system was supposed to keep track of stocks and sales but it was not performing properly.

?Full implementation of the point of sale computer system should be pursued as a matter of urgency, and that until full and effective implementation is achieved, physical and clerical control over the storage and issuance of stamps needs strengthening,? the report states. Sub post offices also need to be electronically linked to the post office headquarters.

And there should be a log signed by members of staff when they enter the vault.

At November last year there were goods worth $36 million in the Post Office vault yet there was no attendance log, the report found.

The Postmaster-General George Outerbridge agreed with the recommendations.