Paco 18.
should be closed and the items making up the balance cleared to the Suspense Accounts of the relevant Sections or activities concerned but at the 31st of Decorbor, 1947, the Account had not been completely cleared. The matter is being kept in view.
73.
E.
SUMMARY
Attached as Annexure B is à summarised statement of receipts, payments and balances of the Suspense accounts maintained for the various activities undertaken by the Supplies, Trade and Industry Department during the periods 1st May, 1946, to 31st March, 1947, and 1st April, 1947 to 31st December, 1947.
740
In
Examination of this statement shows that the total expenditure for 1946-47 incurred and charged to Suspense accounts under the authority of the Director exceeded, by over $13,000,000, the total voted expenditure (including Loan Expenditure) of the Colony, which amounted to $115,983,137.48 for the same period. the financial year 1947-48, the expenditure incurred by the Supplies, Trade and Industries Department up to the 31st December, 1947, excccded the total voted expenditure (including Loan Expenditure) of the Colony for the same period by over $93,000,000; the total of the Colony's voted expenditure shown in the Accountant General's accounts up to the 31st Docomber, 1947, being $88,615,125,89.
75.
This comparison serves to endorse the general conclusion of the preceding paragraphs that it is clearly unsatisfactory that the expenditure of public funds by the Supplies, Trade and Industries Department should not be subject to control by the Legislature, nor receive the approval of the Secretary of State, and the equally undesirable ourollary that since expenditure is met from surplus balances, and receipts are added thereto, the extent and nature of the financial transactions of the Department are not detailed in the published accounts of the Colony.
76.
The further points raised in this Report may be summarized
as follows:-
(a) The authority of the Director to fix selling prices (other
than for rice and flour) at his discretion.(paragraph 8).
(b) The discretionary authority allowed the Director for the
recruitment of and salaries paid to, temporary staff.(paragraph 9).
(0) Authority for the employment of Mr. R.C. Lee as Rice Controller
without remuneration, certain other officers on a part time basis, and Mr. J.. Galvin as honorary agent in Japan under certain specified conditions. (paragraph 10).
(d) The authority of the Director to deal with the condemnation of
stores and write off of losses otherwise than in accordance with Colonial Regulations. (paragraph 11).
(c) Covering authority for the supply of services not called for by
tender through the Tender Board.(paragraphs 12 and 13).
(f) The authority of the Director to exchange flour and rice, apparently obtained for distribution to the public, for other rice and for financial losses on such exchanges to be borne by public funds. (paragraphs 16 to 18).