Page 26.
371
discrepancies were brought to the notice of the Accountant General, and admitted by him, and amendments have been made in the main ledger accounts which are affected.
120. All the investments in Hong Kong Government Loans on behalf of the Secretary for Chinese Affairs' Funds ($70,000) and the Education Scholarships Fund ($54,000) are in respect of pre-war deposits and were brought into the accounts for 1946/47 at face value. There stocks are not quoted in the London Stock Exchange Lists of Securities and revaluation at the 31st of March, 1947, in accordance with the prescribed procedure, has not been made.
121.
Included
Investments held on behalf of the Banking and Insurance Companies Fund amounting to $80,920,000 are shown at face value and revaluation has not been made in accordance with the prescribed procedure to show the stock at market value at the 31st of March, 1947. in the stocks held is an investment of £30,000 in Imperial Japanese Government 6% Sterling Bonds, 1924, apparently on behalf of the Mitsubishi Marine and Fire Insurance Co., which has been brought to account at the Hong Kong dollar equivalent of its face value, i.e. $480,000 (See paragraph 94 of this report).
Supreme Court
$2,940,160.80.
122.
Current account and Fixed Deposits In the case of Fixed Deposits amounting to $2,088,434.64 on behalf of Supreme Court Funds, only those securities held in safe custody by the Accountant General on behalf of the Official Trustee (Life Insurance Companies) and amounting to $268,421.80, have been verified with the relevant Banks' Deposit or Security Deposit Receipts. The Acting Accountant General has advised that certificates in respect of the remainder of the Fixed Deposits, amounting to $1,820,012.84, are held by the Registrar of Companies, but these have not yet been produced for inspection and the matter is being kept in view.
123. The Acting Accountant General has advised that Bonds are not available to cover the investment of $5,559,000 in Hong Kong Government 3% Loan, 1940, on behalf of Surplus Funds, referred to in paragraph 116 of this report, and it is understood that the Bonds were destroyed immediately prior to the capitulation of the Colony in 1941 in order that they should not fall into enemy hands. The asset cannot therefore be verified but the Acting Accountant General has advised that the amount of $5,559,000 reflects the face value of the holding on 31st March, 1947, which has been arrived at by taking the initial investment by Government in the Loan and deducting the value of bonds redeemed in 1941. This figure is not susceptible to audit verification
as the last available audited accounts prior to the fall of the Colony are in respect of the financial year ending on the 31st December, 1939, but on the available information there appear to be no grounds for regarding the fugure as incorrect. This stock is not quoted on the London Stock Exchange Lists, and the investment has not been revalued in accordance with the prescribed procedure to show the market value at the 31st of March, 1947. The investment is not recorded in the investment Ledger
and the matter has been brought to the notice of the Accountant General.
124.
STATEMENT OF LOANS OUTSTANDING PAYABLE TO THE COLONY
The Statement is printed as Appendix 4 to the Accountant Genera]'s Financial Report for 1946/47. In the absence of a Loans Register recording the details called for in paragraph. 17 of the Secretary of State's Circular Despatch of 25th December, 1937, of all Loans made by Government, it has not been possible to make a satisfactory verification