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Enclosure 1.
Hon: Colonial Secretary
566
1. Chung Tax Yan, aurofi, Crown Solicitor's Office, is absent from duty. He has been sick lately; he should have been at the office on the 9th inst. I have been in communication with the Hon; Colonial Treasurer. I opened his cast. box and found a cheque for $168.75 and $458.24 cash all Government money but certain allegations have been made of payments of Government accounts to him, which do not appear in the books: Being satisfied that one, at least, of such allegations is true, I have sworn an Infomation against nin chaling him with embezzlement.
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2. Chung Tak Yan was secured to the extent of $1,000 by Tsang Hin Ting and dong Lan Sang. They have been informed of the unexplained absence of Chun, Tax Yan, and that it may be found that a claim must be made against them as sureties.
3. It appears that the shroff has misappropriated Government moneys working on the following system:-
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A.B. attends on sa; the 1st of the morin and paj s say $100. This is misappropriated. The item is not crossed off in the relevant defaulters list - as it should be and the payment is not reported or entered in the books. The shroff cannot get the Crown Solicitor's receipt for the $100 unless he accounts therefor, and the item appears in the books, so he tells A.B. to call again. A.B. is put off until he becomes impatient, then moneys received from C.D. at a later date are appropriated to A.B.'s payment, and the process continues.
4.
Lately strenuous efforts have been made to collect the extraordinary number of items a pearing in defaulters list owing to the situation in Colony: such efforts included the sending of letters to every person whose name appeared in a defaulters list, and was not crossed off. It would seem that the shroff anticipated that persons who had paid and who subsequently received a letter of demand would report at once, and fearin, dénouement has disappeared.
5.
The extent of the defalcaleations cannot be estimated at present; at a guess I should say not less than $2,500,
(Sd). H., Holmes,
Crom Solicitor. 12th June, 1926.
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