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Hon. Colonial Secretary,
Until Mr. Chan Pui absconded I was unaware of any irregular practices taking place in the Accountant's Office, I exercised such checks as I deemed sufficient and was able to perform nor were any irregularities orbed by the Auditor. As a matter of fact Mr. Heathcote of the Audit Department once carried out a detailed examination and the result a few dollars
out was considered satisfactory.
2.
As regards advances on salaries, Such advances were only allowed upon written authority of a Superintendent and were
Police were not supposed to only granted on very good reasons. borrow. This was a long established custom in the Police Force. The amount of advances allowed was small. I used to limit to a
Advances were made to total of $100 at any one time to Chinese. European on joining up to enable them to make necessary purchase on arrival. These advances were recovered on pay day, and I only remember one occasion, in which they were not paid, this was due to a man absconding and I made up the amount myself. The Accountant was not authorised to make any allowances without the approval of a Superintendent.
2. As regards payment to steamer guards Up to the end of 1918 the guards were not paid until their pay was received from the owners of the vessels upon which they were engaged. The money when received was given to the European in charge to
pay them.
If there was delay in paying the guards would very soon complain, and any misuse of the money prevented. Under instructions this system was changed in 1919 with the result that the Accountant by giving an unauthorised temporary receipt was able to appropriate the money for their pay.
4. Mr. Wolfe states that the Treasury did not send reminders that vouchers had not been returned. Many such reminders were sent but it now appears probable that they went
direct