8
34. It was necessary always to keep a cheque book in reserve, and such book usually lay in reserve for about three weeks. During this time it was kept on a shelf in a safe in the General Office and to this safe, in which were kept Collection Books and certain rent rolls, the Treasury Messengers and the Collection Book Clerks had free access.
The Chief Revenue Clerk and the Cash Book Clerk had facsimile keys for this safe, and the safe stood open during the whole day, including the tiffin hour, when the office would be deserted except for a shroff at the counter and an Indian police sergeant or con- stable. It seems quite clear that any member of the Treasury staff could without chal- lenge, and with little risk of discovery, have removed the reserve cheque book from this. safe and retained it for several days.
The cheque book in current use was kept after office hours in the same safe, whence it was removed in the morning by a messenger who placed it on the desk of the Cash Book Clerk. There it remained throughout the day, including the tiffin hour, and it was finally replaced in the safe by the messenger at 5
p.m.
35. It is now the practice for the reserve cheque book to be retained in the Trea- surer's safe until it is taken into use, all cheque books are sent to and from the Gaol under sealed cover and the cheque book in current use is locked in the safe during the tiffin hour.
36. A feature common to both the Revenue and the Expenditure Branches prior to the commencement of this enquiry was a lack of precaution on the part of the European Officers to ensure that important books of account and documents were placed in safe custody at the close of office hours. This lack of precaution extended to Receipt Books, Collection Books, Revenue Files, Water Authority's Schedules, Cheque Books, Vouchers and the essential books in connection with the Trade Loan.
37. The duties of the Cashier and the Accountant do not appear to have been clearly defined, and the lack of clear definition may have contributed to absence of due control and supervision.
In a list supplied by the Colonial Treasurer Mr. Barton's duties as Cashier are defined as "Signing receipts and supervision of revenue clerks and shroffs" and he does not appear to have received any precise instructions in relation to ensuring the due collection of
revenue.
Mr. Barton considered that the primary and most important part of his duties was the signature of receipts, and ensuring that receipts were issued for all payments disclosed to him and that such payments were duly brought to account. He regarded the ensuring of due collection of all revenue as a secondary duty, the performance of which must de- pend on the availability of time.
Mr. Black's duties as Accountant are defined as, "Supervision of staff and all matters relating to expenditure and book-keeping" and he limits his responsibility with regard to book-keeping in connection with expenditure.
Mr. Black does not appear to have considered it his duty to exercise supervision over the posting of the Cash Book, Cheque Register, Daily Abstract, Ledgers or Journal, or to concern himself with the safeguarding of cheque books and books of account or to ensure that the Treasurer received proper vouchers for all amounts paid out.
Ilis instructions are silent on these points, but they appear to us to be matters which even in the absence of instructions would fall within the ordinary provinces of an Accountant.
Part II.
SECTION I-THE TREASURY CHEQUE FRAUDS,
38. In August and September, 1927, certain unknown persons operating from an office in China Building opened bank accounts with the Instone Banking Corporation, the Netherlands Trading Society, and the Equitable Eastern Banking Corporation in the names of the Min Tak Co., Katz & Co., and the Man Lee Co. respectively. Working on a capital of $3,500.00 these accounts were, by an interchange of payments, given some semblance of activity.
65
No comments yet.
Private notes are available after approval.