The millennium bug could crash a host of Government computers due to lack of forward planning, the Island's independent Auditor warned yesterday.

And Auditor Larry Dennis said an audit review showed there were no contingency plans in place to cope if vital systems failed.

Mr. Dennis said: "Contingency plans will be needed to cope with unforeseen problems that could disrupt critical Government activities at and around the end of the millennium.'' But he added: "None of the departments whose year 2000 preparedness was reviewed during the audit had begun preparing contingency plans for their critical activities.

Mr. Dennis said: "Despite efforts to identify and address year 2000 issues, it is probably inevitable that some problems will occur.

"The effect of these problems will vary. Some will create short-term operational difficulties, while others may cause longer-term and/or critical disruptions to Government services.'' Computers all over the world could crash on or around January 1. 2000 because systems cannot recognise the last two digits of the date as the correct year.

Mr. Dennis -- in the Auditor's report for the financial year 1997/98 -- said he had written to the Ministry of Finance in January this year pointing out that, although Government's Computer Systems and Services Department (CSSD) had made "considerable progress'' on the Y2K problem, Government could not guarantee it could work normally after the millennium.

He added the previous Government only formed a special Y2K committee in September last year, but that it had no responsibility for embedded chip technology -- which could even disrupt the Government phone network.

Mr. Dennis said: "These issues were left to the individual departments -- unfortunately, this strategy has not worked.'' He added that of five departments with "significant'' Y2K risks, only two had tried to identify their embedded chip devices by late 1998 and four "lacked the skills needed to recognise their technical problems and related programme-delivery risks.'' And Mr. Dennis said: "It therefore seemed unlikely that many other departments had assessed the risks to their operations of malfunctioning telephones, communications systems and other devices which rely on embedded chip technology.'' He added that attempts to convert systems lacked proper documentation and project plans, as well as standardised testing.

The Auditor's report said: "In the absence of documented assessments and plans, I could not conclude with confidence that decisions had been reached based on appropriate information or whether appropriate project management techniques had been used when systems were converted.'' The Ministry of Finance said a special Y2K committee represented the "major areas of exposure.'' See Auditor, Page 2 Millennium bug could bite hard The ministry also said work had begun on dealing with potential chip problems.

But the Ministry insisted that "extensive coordination was unnecessary.'' The response added that individual departments were responsible for dealing with the possibility of Y2K affecting their operations.

The Ministry also added that contingency plans for major shutdowns had now been introduced.

The response said that departments were responsible for their own emergency plans, although CSSD and other Government departments could be called in if needed.