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(8)
(و)
disagreement with Mr. Chung Tse Chuen regarding their respective
functions. It appears that Mr. Chung Tse Chuen refused to allow Mr.
Au-Yeung Man to inspect his books, which included the revenue cash
book and the collection book, or to check the cash kept in the Kowloon
Head office. It should be noted that Mr. Au-Yeung Man was allowed, on
instructions from the respective District Officers concerned, to check
the books of the shroffs at the Un Long and Taipo offices. Mr. Au Yeung
Man states that Mr. Chung Tse Chuen's refusal to allow access to his
books was based on the instructions given by the District Officer, New
Territories, to Assistant District Officers in a minute dated 20th
May, 1947, (Appendix 5) it being claimed that this instruction precluded
any intermediate authority between the Assistant District Officers and
the shroffs. We invite particular attention to this episode, as we
consider it one of the most important the inquiry has revealed, having
regard to the following facts:-
(a) Mr. Chung Tse Chuen's books were not checked by any person
other than himself from the 12th September, 1947, when his
collection book was last initialled by Mr. Wakefield, until
the Audit inspection of the 10th May, 1948.
(b) No evidence has been shown to us that Kr. Au-Yeung Man
reported Mr. Chung Tse Chuen's refusal, which could be
regarded as an act of insubordination, to the District Officer,
New Territories.
(c) The progressive infrequency of payments into the bank, which
were made on an average of six and seven times monthly during
material time up to December 1947, but had fallen to twice
monthly by April 1948.
Mr. Au-Yeung Man states that the only records of revenue which
he was able to see were the monthly returns, signed by the District
Officer, New Territories, from which he compiled the annual summary.
On the other hand, he states that he had access to, and control
over, all books relating to expenditure.
We observe the following important features in the financial
arrangements of the District Office as they existed before 12th May,
1948:
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