reorganising. It seems to me to have been the duty of the District Officer to report that the accounting system was unsatisfactory, if he felt it to be so, a year ago, but I am not aware that he sought guidance from the Accountant General in the matter. So far as I am aware, the accounting system at the District Officer's office is the same as that followed by other Government Departments but the report of the Committee brings out, in my opinion, a serious lack of control over the accounts. In my view it is wrong that the accounting for the collections and payments of very large amounts of cash should be left to subordinate officers, some of them quite inexperienced and holding temporary appointments, without being closely supervised and checked by the District or Assistant District Officers. Finding (G) on page 7 of the report mentions that the District Officer, lew Territories, had delegated most of his accouting responsibilities to the District officer, South, but in the absence of any authority for this delegation of responsibilities, the District Officer, New Territories, must be held personally and pecuniarily responsible for the due performannat of the financial duties of his Department under Colonial Regulation 191.
13.
62
The Report makes no recommendations as to the responsibility for the loss. In view of the above paragraphs, I suggest that in the absence of any further information or explanation, the responsiblity should be shared in a lesser degree by the Assistant District Officer, Un Long, for the reasons given in paragraph 7 above; the Assistant District Officer, Taipo, for the reasons given in paragraph 8 above, and in a greater degree by lr. Wakefield for the reasons given in Findin (G) on page 7 of the report and for not dealing with the matter of the checking of Mr. Chung Tse Chuen's accounts by Mr. Au-Yeung Man after he had checked the accounts on the 12th Ceptember, 1947, to which reference is made in paragraph 5 above, and the ristrict Officer, New Territories, for the reasons given in paragraphs, 10, and 12, above, and that these officers should be called upon to make good the amount of the loss.
I am, Sir,
Your obedient servant,
sgda P.. Jennings,
Director of Audit.