CO129-607-1 Enquiry into loss of public money 22-5-1948 - 26-10-1948 — Page 40

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II.

THE SYSTEM BEHIND THESE FACTS.

(up to time of

Chung II's dis- appearance

There is no (i)

Loophole, entrusted

keys to 2 Chinese

-

both friends and

tick as thieves.

Loophole, too much money accumulated.

Loophole, D.O.S. did not demand to see receipt showing pay- ment into the bank, (He may have gone out since signing pay-in slip.)

A

X

PRESENT SYSTEM.

(up to 11.5.48).

(i)Monies pass through each District Office

from the Public to Government to Public from Government.

A.

-

- B.

From the Public to Government (Collection).

(i) The Public pay to Government through District office

money in the form of:-

) fees for market stalls,

permits for stone, sand, turf, etc.,

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#t

#

"

#

occupation of Crown Land.

d) deposits signifying intention to purchase Crown Land,

sales of Crown Lands,

Crown Rent and Rates,

g) Bathing Sheds, etc.,

h) Property Tax, x

j) Fees for Food Shop, Hawkers, Rest. and Eating House

licences, x

k) Fines (Y.L.T.P.)

Both these are "extras" since the war, and amount to considerable suns in fact (j) is hoped to be increased several times in the near future. (k) shows considerable increase from pre-war figures.

The average daily collection of these fees, etc., may be $800/1,000 though a typical day may include a Public Auction of Crown Land, when the purchasers of small lots pay in cash, of large lots by crossed cheque (recent egs. are Salt Pan $19,000 "Dairy Farm $5,100 etc.) Any large individual payments are always by crossed cheque.

•

(ii) The public receive in immediate acknowledgement of any

payment to Crown an official receipt(which may sometimes be a Licence) bearing an Audit No.

An entry of each payment from the public was made in "Daily Collecting Book" together with the official Rept. Audit No. In Head Office this book was closed each day and the total sum collected checked by the Clerk i/c Accounts Mr. Au Yeung, and deposited by CHUNG II and Au Yeung into a locked box (CHUNG II (having the key) and then into the large safe (a key of which was held by the D.O.N.T. and Chung I). A separate book was also kept showing daily receipts on one side and bank in-payments on the other (Cash Book).

The

In S.D. (i.e. K.M.) this money so collected was paid into the bank (Kowloon Sub-agency) by the Shroff (Chung II), the payments being every three or four days when total collections may be $3-4,000. method of each payment was for Chung II to produce a bank pay-in slip for signature together with a Treasury Receipt Voucher for the same sum.

This pay-in slip etc. was signed by D.0.S., the usual custom being for Chung II to ask for permission to take the D.0.'s driver and D.0.S.'s car or the Land Bailiff's together with the armed watchman to the bank. On occasions when

no car or driver was available Chung II took a taxi with the armed watchman. The check that this money was placed into bank was the receipted Treasury Receipt Voucher.

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