529
No. 32
Enclosure No. 1.
Enclosure No. 1.
Enclosure No. 2.
April 11, 1893. Enclosure No. 3.
April 22, 1993.
Enclosure No. 3.
HONGKONG.
DEFALCATIONS IN THE TREASURY.
Laid before the Legislative Council by Command of His Excellency the Governor, on the 12th September, 1893.
MY LORD MARQUESS,
(Governor to Secretary of State.)
GOVERNMENT HOUSE, HONGKONG, 26th April, 1893.
I regret to have to report the occurrence of serious defalcations in the Treasury. On the 2nd of February last, the Treasurer informed the Colonial Secretary that ALVES, the first Clerk of the Treasury, had disappeared, and that the Local Auditor. had discovered defalcations in the Accounts. On the 15th of February, the Local Auditor reported that defalcations amounting approximately to the sum of $59,000 had been committed. As his report disclosed that the local Audit was itself not free from blame in the matter, I appointed a Commission on the 20th of February, consisting of Mr. ACKROYD, Puisne Judge, Mr. THURBURN, Man- ager of the Chartered Mercantile Bank, and Mr. BIRD, a gentleman who has acted as Auditor of the Hongkong and Shanghai Bank, to investigate and report. The scope of their enquiry is shewn in their letter of appointment, copy of which is appended to their report. On the 4th instant the Commission sent in their report. On the 18th instant ALVES was tried on a number of charges, pleaded guilty to larceny, falsification of documents, and the theft of a book belonging to Govern- ment, and was sentenced to six years' imprisonment with hard labour.
2. On receipt of the report of the Commission, copies of which and of the evidence taken by them are herewith forwarded, I had it printed and caused copies of it to be forwarded to Mr. MITCHELL-INNES, Colonial Treasurer, Mr. WODEHOUSE, and Mr. MAY, with letters calling on them to shew cause why they should not be held pecuniarily responsible for the amounts misappropriated during their several tenures of the office of Treasurer. Copies of these letters, and of their replies, and of a further correspondence with Mr. WODEHOUSE and Mr. MAY on the subject, are enclosed. I also caused a separate letter, of which I enclose a copy, to be addressed to the Colonial Treasurer, commenting on his neglect of duty disclosed by the report of the Commission and the evidence recorded by them, informing him that the matter would be laid before the Secretary of State, and requesting him to furnish any explanation or statement that he might wish to be considered by Your Lordship. Copies of his reply, and of a separate statement which he has asked to be submitted to Your Lordship are enclosed.
3. It will be seen from the report of the Commission that the defalcations extend over the years 1888-92 inclusive, and amount to some $62,817, that the books have been balanced and no defalcations discovered in excess of the sum stated, and that there is no reason to believe that any misappropriations have been committed by any one in the Treasury except ALVES.
4. The first question that I have had to consider has been whether the amount misappropriated or any, and what, portion of it can be recovered, and from whom such recovery can be made. It has been ascertained that ALVES is practically insolvent, his property being mortgaged for more than its full value, and as the Crown has, as I am informed, in Hongkong, no preferential claim, there is no prospect of recovering any portion of the defalcations from his estate. Mr. LISTER, who is dead, was Treasurer during the first six months of 1888, Mr. WODEHOUSE
The Right Honourable
THE MARQUESS OF RIPON,
Her Majesty's Principal Secretary of State for the Colonies,
&c.,
Ye..
$c.