No2.589
Bongkong
OC
ल
Sir,
41925
261
3086 1
Pro 28 JAN 041
Government House,
Hongkong, 28th December, 1903.
wosure t
October 103
03
With reference to Sir Henry Blake's despatch No. 479 of the 19th October and your reply No.421 of the 20th ultimo, I have the honour to transmit for your information the enclosed extract from a minute by the Commandant of the Hong Kong Volunteer Corps with reference to his share of responsibility in connection with the want of supervision and proper control which resulted in Sergeant Major Power's defalcations.
The facts stated by Major Pritchard regarding the absence of any satisfactory system of supervision or audit are accurate, and after full consideration I am of opinion that although it is not an absolutely valid excuse as he merely carried on methods which had been instituted by his predecessors, it might be considered unjust to call upon him to make good the losses for which as Head of the Department he would in different circumstances be held liable solely. Subject therefore to your approval, I have caused the deficiencies to be made good out of the Corps fund, a sufficient balance being available.
2.
The method of administering the funds of the Corps has since been made the subject of careful enquiry by the Colonial Treasurer and Local Auditor, the latter having kindly consented to examine the accounts as they stood after Power's arrest, and to suggest rules whereby the chances of fraud might for the future be minimised. The result will be found in the enclosed.
THE RIGHT HONOURABLE
ALFRED LYTTELTON, K.C., M.P.