A (2) 14
Military Contribution.
81. The sum of $6,880,723.81 was charged to the Expenditure Head Defence (c) "Military Contribution" during the year 1938. The amount required to be paid to the Imperial Government as Military Contribution under Ordinances No. 1 of 1901 and 43 of 1935, in respect of the year 1938, was $6,277,717.03. A statement showing how this amount is arrived at is attached (Enclosure 16). The sum charged to the 1938 accounts included arrears of the 1937 contribution amounting to $654,932.85, leaving a balance in favour of the Military Authorities of $51,926.07, which latter amount has since been paid and charged to 1939 expenditure.
Losses of Public Money attributable to fraud.
year:
82. The following losses of Public money due to fraud occurred during the year:
(1) Cash amounting to $369 disappeared from a sealed bag whilst in transit between a Police launch and the Harbour Office Hong Kong. The authority of the Secretary of State was obtained to write off the loss. As a result of this case a Government circular was issued calling attention to the necessity for obtaining receipts on every occasion when Public money is handed over by one official to another.
(2) An imprest of cash and stamps issued to a Post Office Shroff was found deficient to the extent of $369.39. The employee concerned was dismissed from Government service after having been convicted in a Court of Law. The loss was partly covered by the forfeiture of his security of $200.00. The sanction of the Secretary of State was obtained to write off the full extent of the loss.
(3) A shortage of $449.53 was discovered in an Imprest of another Postal Shroff, and in consequence the security of $200 furnished by him was forfeited. After conviction by a Court he was dismissed the Service. The Secretary of State approved of the "write off" of the sum involved.
(4) A detailed audit investigation made of the accounts and records kept in connection with the issue of Passports and Visas, covering a period of approximately eight months, revealed serious irregularities and showed that, according to documents filed etc., fees collected amounting to $1,449.78 had not been brought to account. Further, a large number of visa forms were missing, and there are grounds for believing that further sums may have been received in connection with the missing forms but not brought to account. As the detailed audit examination covered part of the year only the deficiency reported above does not necessarily indicate the full extent of the loss to Government. The officer presumably responsible for these irregularities left the Colony on short leave and failed to return; in consequence thereof he was regarded as having forfeited his appointment.
The Secretary of State has been requested to approve of the writing off of these losses.
(5) A further loss of $104.17 due to the overpayment of salary to the officer referred to above has been included in 1938 expenditure. The covering sanction of the Secretary of State has been sought to charge this amount to Public funds.