CO129-607-1 Enquiry into loss of public money 22-5-1948 - 26-10-1948 — Page 35

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In June, as Appendix 2 of the Committee's report shows, being unhappy about the accounting system, I put Mr. Au Yeung Man in charge of the accounts. I chose him, because I had been impressed by his thorough understanding of the permit system, and because (see the last line but two of his minute of 26.9.47 which is Appendix 4 of the Committee's Report) he had long experience of accounts. Although there had been an interregnum with Mr. Chan Leung Tak nominally in charge, I had always regarded him as backed by Chung Yiu Kei, the expert. So in handing over to Mr. Au Yeung in my office in Mr. Chung Yiu Kei's presence, I told both that I expected Chung Yi Kei to continue to give ready assistance over the accounts any time Mr. Au Yeung asked for it. Both appeared thoroughly to have understood this. On the 1st of July Mr. Au Yeung justified my choice by producing a preliminary criticism of the accounting system (Appendix 3 of the Committee's Report). Being, as I have said, very busy (I have to be at Taipo as Magistrate three mornings a week), I handled Au Yueng's criticism to Chung, and told Chung to sort it out with him. It now turns out (Mr. Wakefield remehbers this) that Chung and Au Yeung had a row in our big office at the Peninsula Hotel, when Mr. Wakefield was brought in to separate them. I regret to say that I never followed up that criticism, because it was not again brought to my notice. Here I blame Mr. Au Yeung for not doing so: he apparently remained dissatisfied over the accounts, yet never gain brought this to Mr. Wakefield's or my notice.

Mr. Au Yeung bases his claim to have been responsible for books only, not for cash, I understand on paragraph 2 of my minute to A.D.0.0. of 26.6.48 Appendix 2 in Committee's Report which ran as follows:-

"I have decided that Mr. Au Yeung Man, of Head Office, who has great experience in these matters, should take charge of all accounts, though he is not to handle actual cash, as

he is not secured. He will do this in addition to the work is about to start as head of our new Statistical Section. Please give him all the help you can".

My chief reasons for saying that this line is all hooey, are as follows.

(a) We all knew that Mr. Au Yeung was responsible for the whole

accounting side, even his colleague of many years in D.0. South, my head Correspondence Clerk, Mr. Ng Ying Lok.

(b)

(c)

(a)

(=)

It is nearly as ridiculous for Mr. Au Yeung to claim that he was uncertain as to his responsibilities because they were not laid down in writing, as it would be for me to claim the same of mine. Everybody knows what our jobs are, and I consider he is dishonestly evading responsibility.

In dealing with the accounts, Mr. Wakefield always dealt with Au Yeung.

The missing Shroff, Mr. Chung Tse Chuen, on his trips to Pingshan and Taipo to collect the cash, was nearly always accompanied by Mr. Au Yeung, who checked everything simultaneously.

From time to time Mr. Wakefield noticed notes which had been initialled by Mr. Au Yeung.

(f) Mr. Wakefield has in his possession a $500 note initialled

by Mr. Au Yeung.