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hind with suitable employment elsewhere.

19.

In addition to the reports I have already dealt with, the Commission refer in their report to the local Auditor and Mr Carvalho, later Chief Clerk, as being to blame in connection with the defalcations, allegations, and they had been good officers in certain questions with a view to preventing the occurrence of frauds in the Treasury.

The local Auditor is not an officer of this Government, as his department is in the hands of the Government, I have not thought it proper to call on him for any explanation, though I consider he is greatly to blame for not having reported.

The Officer administering the Government stated that he could not obtain the Rent Roll of 1890 from the Treasurer with a view to its being balanced.

As regards Mr Carvalho, I hardly think that there are sufficient grounds to warrant the reduction of the pension that was recently assigned to him on his retirement.

As to the steps that should be taken to prevent the recurrence of frauds, I propose to address Your Lordship in a separate despatch.

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