I am inclined to think that the plan of paying the Official Receiver, when acting as a trustee in bankruptcy, by commission on the receipts has many vigorous advantages; but if a bankrupt's estates are retained as investments, it might be better to adhere to the rule laid down by Lord Derby in 1883 against direct payment of commission.
But the former course would deprive the Official Receiver of his statutory remuneration.
I am inclined to think that it would have been better to appoint an outsider as Official Receiver and let him receive the fees and commission provided by the Ordinance - but perhaps the former master had good reason for appointing the Registrar. Still, it would not do to appoint the Registrar and have his subordinates audit his accounts. This anomaly should be corrected.
It is difficult to make arrangements for temporary investments of funds, but there is no harm in suspecting that the idea of making the Bankruptcy fund pay for itself has entailed any addition to the staff, except perhaps a temporary clerk.
As to the Bankruptcy estate being made to pay for itself - it does not appear that it has entailed any addition to the staff, except perhaps a temporary clerk.
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...
EXCHEQUER AND AUDIT DEPARTMENT,
C.O.
If any further correspondence on this subject is made, the above number should be quoted, and the communication should be addressed to "The Comptroller and Auditor General."
Gov 18944
Sir,
20846
"RECEIVED"
Br 12 0 331
SOMERSET HOUSE,
LONDON, W.C.
December 1893.
I am directed by the Comptroller and Auditor General to refer to Mr. Fairfield's letter of 4th October 1892, on the subject of the accounts of the Supreme Court of Hong Kong, in which it is stated that the Marquess of Ripon had approved the Governor's proposal that when the Official Receiver acts as a Trustee in Bankruptcy, his accounts should be subjected to a thorough audit by the Local Auditor.
401*
In consequence of this decision, Sir Charles Ryan, in a letter to Mr. Nicolle of 25th May 1893, a copy of which is appended, gave directions for the accounts in question to be examined.
A Report from the Local Auditor, dated 10th October 1893, as to the examination of these Accounts has now been received and is herewith transmitted (in original to be returned) for the information of the Secretary of State. It will be observed that it bears the Governor's initials as having been seen under flying seal.
Notwithstanding Mr. Nicolle's excusable reluctance to undertake what, under existing circumstances, is doubtless a difficult and most complicated examination, the Comptroller and Auditor General is of opinion that, as a question of principle, all accounts for which Government Officials are responsible should be audited, and he is quite prepared to direct the continuance of the examination of these accounts.
The Honourable R.H.Meade, C.B.,
Colonial Office.
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