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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, Manager of the Chartered Mercantile Bank, and W.V. Bird, a gentleman who has acted as Auditor of the Stirling and Shanghai Bank, to investigate and report.
The scope of their enquiry is shown in their letter of appointment, copy of which is Enclosure AJ, 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 Government, 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 Colonial Secretary Mr Mitchell-Innes, with letters calling attention to certain matters.