Pago 16.
for the supply of firewood and timbor. The firewood was supplied by the North Borneo Trading Co. Ltd., and under the agreement Mr. Phillipps received 5% of the proved F.O.B. value of cach shipment and reimbursement of his "personal expenses".
63.
After the handover to the Civil Government on the 1st of May, 1946, the supply of firewood continued to be obtained through Mr. Phillipps' Agenoy and the arrangements for the supply and the local distribution of firewood at prices fixed by the Director, Supplies, Trade & Industries Department, was undertaken by the Coal and Firewood Section of the Department. A separate Firewood Suspense Account was maintained, to which receipts and payments arising from this activity were charged. The agreement with Mr. Phillipps subsequently lapsed, after arrangements had been made for the supply of firewood to be obtained direct from the North Borneo Trading Co. Ltd., and Mr. Phillipps submitted a claim for his commission and expenses. This matter is still under examination by this Department and also with regard to considerable discrepancies between quantities of timber shipped and paid for export in North Borneo and the quantitics shown in the Departmental records as received in Hong Kong. Some of those discrepancies appear to be excessive.
640
It has recently been ascertained that proceeds from the sale of stocks of coal and firewood on hand on the 1st of May, 1946, which were paid for from War Office funds, or British Military Administration funds, locally or in North Borneo, amounting to $5,693,735.93 was transferred from the Coal & Firewood Suspense Accounts to the deposit account in the name of His Majesty's Government in the Accountant General's accounts in March, 1948 (sco paragraph 19 of this report). The transfer has not yet been checked by this Department but the verification and the clearance of the deposit account by payment to His Majesty's Goverment are being kept in vicw.
65.
The Coal and Firewood Section also undertook responsibility for the procurement and distribution of charcoal after the handover from the British Military Administration to Civil Government. A separate Suspense Account has been opened for this purpose but it has not yet been possible to make any detailed examination of the arrangements or the account and the matter is being kept in view.
66.
(c) Other Activities
(i) Fuel Oil Section
This Section was set up during the period of the British Military Administration in order to handle the supply and distribution of Fuel Oils. The Section continued to operate after the handover to the Civil Government until the 1st of June, 1946, when supplies became available commercially and controls were lifted and the Section was closed down. A separate Fuel Oil Suspense Account was opened for recording the receipts and payments arising from the operation of the Section. No detailed audit examination of the accounts of the Fuel Oil Section was made during the period of the Military Administration and from a preliminary survey made after the handover to Civil Government, it appeared that the accounts were in great confusion and that it would be difficult, if not impossible, to complete any check which might be undertaken. No subsequent check has yet been undertaken by this Department. While receipts exceed payments made subsequent to May, it is possible that certain receipts are in respect of sales of supplies paid for from War Office or British Military ..dministration funds and which should therefore be paid over to His Majesty's Government. matter is being kept in view.
The
1946,
67.
(ii) Distribution of UNNRA Clothing
During the examination of the Treasury expenditure vouchers,