The Torres Strait's Islander Board of Industry and Service (IBIS) says it was "totally out of its depth" when it took on the operations of a banking agency at Weipa.

An auditor-general's report reveals $73,000 disappeared from the Commonwealth Bank agency between 1999 and 2000.

The board's general manager, Ned Bates, says his own investigations at the time revealed a total lack of security.

"The Napranum people would leave all their passbooks in our store. There was a certain amount of complacency and didn't have the facilities to clear cash every night," he said.

"When I seen the facilities that they were working out of, which were totally inadequate, I reckon there's some old barns that were better provided for than what a grocery store was. When we...[saw] what the problem was we closed the store down."

Meanwhile, the Commonwealth Bank has declined to comment on how the branch lost $73,000.

A spokesman has also declined to say what action has been taken to ensure similar incidents do not happen elsewhere.

He says the bank has not been involved in the auditor-general's investigation.

The Torres Strait's Island Coordinating Council (ICC), which has two members on the IBIS Board, says it is not concerned about the Minister's proposal for a new board.

Both the ICC and the Torres Strait Regional Authority have otherwise remained silent on the issue.