CO129-363 - Public Offices & Others - 1909 — Page 433

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$11,500 was outstanding on 31st December 1907. Such a transaction is very unusual and the prin- ciple of financing a Contractor with Government

money appears to be open to objection.

8. The audit of the Revenue and certain other

accounts, including those of the Kowloon Canton Railway, was conducted under my directione by the

officers of my Department stationed in the Colony

with generally satisfactory results.

9. With reference to the remarks in paragraph 5 of my report on the accounts for 1906 relative to an embezzlement in the New Territory of $1808.44

I am informed that this sum has been written off

by authority of the Secretary of State, but that

of this amount the sum of $1,082.15 has been

recovered from the sureties of the absconding

Shroff. The Local Auditor reports that the em- bezzlement was entirely due to negligence or lack

of supervision on the part of the responsible

Officer.

10. In accordance with the arrangement referred

to in my letter to the Colonial Office No: 290 of

3rd March 1908, an Officer of my Department visit-

ed Hong Kong in April 1908 and advantage was taken of this opportunity of enquiring into the gene-

ral work of the local audit staff. As a result of

his enquiries I may state that the books of account

in the various Departments appear to be well kept

and to be adapted to their purpose, and the ex-

amination given by the Auditor is careful and

thorough.

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