CO129-494 - Governor Sir Clementi - 1926 [9-10] — Page 554

Care

where defalcations

CLA

found to

The

be the result of a

جمهروش

faulty aptem,

u.ft. will not he prefered to relieve

the respons the

Преве

head of the Desk of the

resssity of making

good

the loss.

some stronger action than that which is now

suggested is required and, as this case has strong

points of similarity to that which has occurred

in the Treasury, I would suggest that the reply

to this despatch should be held up until the cas531

of the Treasury Shroff has been reported to you

and duly considered.

محسسة

9/12/26

Have

Zou any で

Bosoms please?

6673

8/12

(Please see los 18222,

musight was wit text Ayon

Mr.Beckett,

I understand from the Auditor (a copy of Mr.

Phelips' letter to me No.33/60 of the 12th of August, 1926, is enclosed) that, in addition to the frauds reported to the Secretary of State in 19222/26 and in this paper, there was a further

fraud in the Treasury involving the comparatively

large amount of $7,752.66. It is fairly evident

that the fraud in the Treasury by the Shroff, Chau Lam, as well as that in the Crown Solicitor's Office

by Chung Tak Yan, was mainly due to the practice of not issuing receipts at the time that the money was paid to the accounting officer, and it appears from Mr.Phelips' letter that, on two occasions (once in

1924 and again in 1926) the inherent weakness of

the system was represented by him to the Government.

Considering this fact in conjunction with the

representations which were made to the Governor

by the Secretary of State in connection with the

Police Funds in 1920 I am inclined to think that

Bome

Sin E. Stephenson

15-1~

Annex (22026 & 20967

It is to be inferred

which complete the story. It is whe

that the Governor

han

overruled the Treasur

in apard

to the system. I agere it with for Chuttubuch that his perfonals in 20469 should be affourch. (to exgards

with deeme

C22024

sufficient to write off $6,752.66,

it

as

/

to clear of the account for the time being afferently $1900 have been recovved, that this

real importame).

19:147

Mr.Beckett,

I, also, agree with the action proposed

in 0.20959/26 which I think should render

unlikely