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were not brought to account and which were misappropriated. But there is, in our opinion, no evidence of any such collusion; and the conduct of the two shroffs subse- quently to the discovery of the frauds in connection with the Water Accounts points strongly to their complete disassociation from Carvalho Yeo's proceedings.
48. We have therefore sought other explanation as to how the money may have. come into the hands of Carvalho Yeo.
All those persons who have come forward and who have actual recollection of mak- ing payments state that they made such payments to the person who was at the time of payment seated at the Treasury counter in the position throughout occupied by the Hong Kong Water Account Shroff, but they are unable to identify the actual individual. It therefore seems clear that the moneys were paid either to the shroff or to some person temporarily situated at the shroff's counter.
Unfortunately the shroff's rough books for the material periods have been destroyed and we cannot therefore definitely ascertain who received payment.
It is stated by the shroffs that at times of pressure Carvalho Yeo assisted them at the counter, and that he also took in moneys when they were temporarily absent from the room; and it is conceivable that the money may have come into his hands at such times.
They also say that during the tiffin hour they always left any money which they had in hand in the drawer under the counter. These drawers have a very ordinary type of key and it is conceivable that Carvalho Yeo may have gained access to the drawers dur- ing the tiffin hour.
They also say that Carvalho Yeo frequently remained in the office during the tiffin hour, and that on occasion he handed them sums, invariably small, which he stated he had received during their absence. It is possible that some of the accounts may have been received by him during the tiffin hour, though it is unusual for members of the public to attend to make payments at that time.
In certain cases the misappropriated sums were paid by cheque and these cheques were passed through the General Account of the Treasury. In such cases Carvalho Yeo must have obtained the equivalent amount of cash either from the shroff's drawer or from other consumers.
We find it impossible to come to any definite conclusion as to how the moneys came into the hands of Carvalho Yeo, but there appears to have been ample opportunity for him to possess himself of them.
The fraud and the long concealment thereof appears to have been rendered possible by the defects to which we have directed attention in paragraph 17 of this Report.
We wish to acknowledge the assistance of those consumers who have been kind enough to attend before us and to assist us by the production of their receipts, accounts and cheques.
Section III.
THE LOSSES AT THE EDUCATION DEPARTMENT.
49. The frauds in the Education Department were prepetrated by Chan Tsz Un, a Class III clerk, who joined the Government Service in August, 1905, and absconded in September, 1927. He was appointed to the Education Department in 1916, and at the time of the frauds was receiving a salary of $1,600 per annum.
The misappropriations of refunded personal emoluments extended over the years. 1925, 1926 and 1927 and the net loss occasioned thereby was $1,206.00, while the frauds in connection with subsidies to Elementary Vernacular Schools extended over the years 1922 to 1927 and entailed a loss of $19,108.00.
50. During the material periods the appointment of Director of Education was held by three Officers, namely. Mr. Edward Alexander Irving, for the period up to February, 1924. Mr. Geoffrey Norman Orme from that date until the 10th December, 1925, and Mr. Alan Eustace Wood from the latter date until the present time.
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