CO129-494 - Governor Sir Clementi - 1926 [9-10] — Page 564

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Auditor, the acting Treasury Cashier, and the Senior Clerk of this department; a copy of the report is enclosed for your information, from which it will be observed that the Assistant Auditor again drew attention to this matter, which I duly brought to the notice of the Government, the question, in the meantime, having arisen, owing to a member of the public having objected at not receiving a receipt at the time of payment into the Treasury, and although it was again pointed out to the Treasurer that the practice that obtained in the

Treasury was open to abuse, the Treasurer was diffident

of making any alteration in the system, being apparently satisfied that there was little risk of irregularities.

His Excellency the Governor, apparently accepted the

Treasurer's advice and decided that no action was to be

taken.

6. On, or about, the 23rd of June, 1926, it was

discovered, owing to the Crown Solicitor having sent a

legal reminder to a defaulter for rates, that the

defaulter had paid the rates, amounting to $2,045.89, by

cheque to the Treasury Shroff, Chau Lam, for which no

receipt had been given. On enquiries being instituted,

it was found that the cheque had been paid into the Bank,

apparently to cover other collections which were probably

made in cash.

After further investigations it was discovered that

Chau Lam had misappropriated, as far as it has been able

at present to ascertain, the sum of $7,707.16, and it

will be observed from the attached list that the sume

misappropriated cover several heads of revenue. The

possibility of such extensive defalcations was due, in

my