CO129-462 - Governor Sir Stubbs - 1920 [7-10] — Page 269

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Enclosure 1C.

The Treasury,

16th July, 1920.

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I have the honour to submit a final statement of the defalcations of Chan Pui, Accountant of the Police Department. There is no great discrepancy between this and the preliminary statement signed by the Hon. Capt. Superintendent on 11th March, but the Auditor had found great difficulty in arriving at absolute certitude chiefly owing to the fact that the departmen- tal banking accounts concerned were not closed as soon as the defalcations camẹ to light, but were continued in use for subsequent transactions.

2.

Chan Pui absconded on the 29th. November, 1919. The main investigation of the accounts was completed early in March 1920, and the preliminary statement signed by the Hon. Capt. Superintendent (Mr. Wolfe) on the 11th March. During the whole of this period I was absent from the Colony. Between the 11th. of March and the 27th. April when Mr. Wolfe went on leave the accounts were with the Auditor. Mr. Wolfe's predecessor in office bad gone on leave on 5th January. It has therefore been somewhat difficult for me to arrive at definite conclusions regarding the history of these defalcations. Even the culprit himself whom I have interrogated is not clear on many points.

3. Two things are however clear. First that the financial side of the Police Department had for many years been administered on a system that was in many respects thoroughly

bad. Secondly that Chan Pui began to take advantage of this

defect very soon after his appointment to the Department.

4. The following are the more salient points of the

first of the above factors:-

The Hon. Colonial Secretary,

Hongkong.

(a)