Failed safety controls cause bank's shame

For DBS Bank, there clearly is such a thing as bad publicity. The low-profile bank exploded onto the front pages of Asia's newspapers after one of its Hong Kong branches mistakenly discarded 83 safety deposit boxes as scrap metal. The boxes were later crushed by industrial compressors before the error was realised, leaving the bank with a serious crisis on its hands. Newspapers and TV stations were soon carrying images and comments of furious customers. The boxes -- believed to contain cash, bonds, certificates and jewellery -- were destroyed as a result of human error, after being included among 837 empty safe deposit boxes sent to the scrap heap. DBS Bank's PR machine sprung into action quickly enough, stating that it would honour its responsibilities. With a number of customers taking their complaints to the police, and the Hong Kong Monetary Authority (HKMA) announcing that it was "taking a serious view" of the matter, the bank appeared to be fully cognisant of the need to placate affected customers. However, DBS has attracted some criticism for its handling of the crisis. The error was discovered by the bank on October 3, one day after the boxes were transported to the scrap yard, but officials did not go public until two days later. Meanwhile, internet postings were already revealing that cash, property deeds and even a diamond-studded Rolex watch had been found at the scrapyard. By October 6, DBS had offered affected customers a compensation package worth HK$12.5 million (US$1.6 million), a sum described by the HKMA as "appropriate". While some rejected the DBS offer, others accepted it. Nine customers accepted an initial payment of $50,000, while eight accepted an extra $100,000 in exchange for waiving their right to further claims. While a DBS official asserted that no mass withdrawal of account holders has taken place, the bank's image has taken a battering in the media. How it rebuilds trust with customers and fulfils its 'Experience something new' slogan -- for all the right reasons -- is likely to prove a massive challenge.