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office, their licences are issued to them. No fees are, or ought to be, received at this Office.

By way of a check, the Treasurer frequently forwards to this Office a book containing a complete list of the Squatters' fees payable for the year, in which all those have

which

been paid to date are so marked.

I find that it has been the practice of the Land Bailiff (Mr. King), who has to do with the issue of Squatters' Licences, to check the Treasurer's entries with those made in a Corresponding book in this office, which is filled in as the licences are issued. He has never checked the Treasurer's

entries with the licences themselves, which are contained in

books with counterfoils, and which constituted the only real

check in the matter.

As the licences enumerated in the attached

list are missing from the books and the fees for them have not

been received at the Treasury it appears obvious that the clerk,

Tai, has been receiving the fees himself and appropriating them, issuing the licences direct to the people in exchange for the

fees.

Enquiries are being made in order to as-

certain whether the various sums wire paid to Tai, but I have

deemed it desirable to communicate the matter to you at once.

I attach a further letter from Tai, which

reached me yesterday, applying for an extension of leave, along

with the cover which contained it.

It appears as if there would be an opportu-

nity of arresting him on his return to the Colony and I therefore

forward this to you confidentially.

With a view to preventing a repetition of

the occurrence, I would submit that the licences be issued in future by the Treasury upon receipt of the fees from the

Squatters

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