CO129-494 - Governor Sir Clementi - 1926 [9-10] — Page 561

* Aghaar

No. 33/60.

COPY.

Auditor, Hong Kong, to Director of Colonial Audit.

12th August, 1926.

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I have the honour to report on three embezzle-

ments which have been discovered, one in the Treasury

and two in the office of the Crown Solicitor.

2. The main facts governing these three

embezzlements are, in my consideration, so similar that I have taken the opportunity of dealing with them in

one report, so as to enable you to consider the circum- stances relating to them conjointly.

3.

Treasury. Defalcation of $7,707.16 by

Treasury Shroff, Chau Lam

I hope it will not be considered that I am unduly

critical in my report on this embezzlement, but in view

of the fact that I have twice drawn attention, in

successiva administrations, to the possibility of

irregularities occurring. I feel it necessary to place

my views fully before you.

There has, for a considerable time, been a diver-

gence of opinion between the Treasurer and myself, as to

the safeguards in force on the receipt of money at the

Treasury. Whenever a survey has been made by this

department of the cash receipts, it has been felt that

there has been a possibility of the Shroffs only

producing such portion of the money which has been cól-

lected by them, and accounted for in the respective

collection books. Prima facie, this would appear to

be correct, but, I submit, there is a more important

question