CO129-462 - Governor Sir Stubbs - 1920 [7-10] — Page 271

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5.

263

the perquisites of the Police performing the duty. (4) wai payable to the guards similarly. In 1919 (1) (2) & (3) were for the first time paid into the Bank to the account of the Government, but I am unable to ascertain what caused this very salutary step to be taken.

In the case of (4) the payses were in no sense employed by Government and it is at least arguable that the money for their salaries should not be brought to account in the Treasury books. The Audit Department was not furnished with any statement of the amounts receivable under these heade and it was therefore an easy matter for the Accountant to use this money to balance his books for audit.

As regards the second point Chan Pui claims that the state- ment of accounts on which he took over from Mr. Ng Puk Shang was incormo rect, a very much larger sum being outstanding under the head of Advances than was shown in the balance sheet. By the time he discovered this, however, Chan Pui had already begun to misappropriate public money, and he was afraid to ask for a proper investigation of the

departmental finances. For a time he made considerable sums by the

conversion of notes into sub-coin, all sums of less than 15 payable on

bills for goods supplied being paid in sub-coin, and the cheque covering

the total bills being cashed in notes. After a while the profit to be re-

alised in this way began to dwindle and finally disappeared, sub-coin coming to par with notes. All prospect of making good the original deficit and subsequent embezzlements except by successful gambling then vanished, and failing this, success he could only hope to deceive the Capt. Superintendent and the Auditor as long as possible. Mr. Wolfe's action in locking up the balances of pay on the 29th, November appeara to have convinced him that the limit had been reached.

6.

It must be remembered that the period of Chan Pui's service in the Police Dept. (1915-1919) was one in which depletion of European staff and other results of the war made steadily increasing

demands