CO129-607-1 Enquiry into loss of public money 22-5-1948 - 26-10-1948 — Page 21

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Government service in September 1947, and is not now available

to give evidence on this point. We feel that we ought to mention

at this juncture that there have been brought to our notice certain

documents which reflect seriously on Mr. Chung Yiu Kei's suitability

to take charge of accounts or to give instructions regarding them.

These documents are filed in an unnumbered D.O. file headed

"Payment of Travelling Expenses. We have not considered it

necessary to burden this report with copies of these documents, but

the gist of them is that Mr. Chung Yiu Kei was in the habit of

requiring messengers to sign receipts for payment of travelling

expenses although he had not at the time paid them. Mr. Chung Yiu

Kei claims that payment was intended at a later date, but however

honest Mr. Chung Yiu Kei's intentions may have been, this represents

very unsound and improper accounting practice.

On the 1st July, 1947, Mr. Au-Yeung Man in a minute to the

District Officer, New Territories (Appendix 3) made certain

recommendations for improving the accounting system of the department.

There appears to be no written reply, nor does any positive action

appear to have been taken, but it is agreed that the matter was

discussed informally with the District Officer, New Territories,

In this minute mention is made of the absence of "proper books" for,

inter alia, the Imprest Account. We find that an Imprest Account-bodi was kept up to 26th September, 1947, but after this the only Imprest

record was a file of vouchers. This system was apparently adopted

as the result of a discussion between Mr. Au-Yeung Man and Mr. Chung

Yiu Kei, but it is not clear if Mr. Au-Yeung Man understood the

methods Chung recommended.

In September 1947, Mr. Au-Yeung Man was, at his own request,

relieved of his additional duties as clerk in charge of the

Statistical Section. In a minute dated 25th September, 1947, (Appendix

4) Mr. Au-Yeung Man asked to be relieved of his duties as clerk in

be

charge of Accounts, and to/re-appointed as clerk in charge of Statis-

tical Section. He states that this request was made because of his