CO129-607-2 Military administration- accounts- etc. 3-2-1949 - 14-11-1949 — Page 42

Mem

or and um

by Was office

42

1.

was known

1. The Report by the Dindor of

Audit, Hong Kon 4o we know that the Exchequer and Audit Department had Han Kong examined proeur records for the period of British Military Administra-

tion,/e consulted them on para. 11 of your Auditor's repert, about They produced fairly Lisey.

were the cost of operating electricity companies.

comprehensive figures for the Hong Kong Electric Company which are set out in the statements attached. Statement A shows the build up it would of the figure of $1,709,463.93 charged to 3..A. and/ gather from

the Auditor's report that a further sum of $732,841 37 hasbeen charged to B.M.A. for rent, making a total charge of $2,442,305.30. Against this an unspecified proportion of the recovery of $1,423,058.94 will apparently be credited to H.M.G.

2. The question arises whether the method of charge to B.M.A. is correct or whether it would be more appropriate to charge B.M.A. the cost of operating the company as a public utility, plus rent and Head Office expenses. According to Exchequer and Audit Department's notes the cost of fuel consumed, charged in the Working Account (enclosure B), was arrived at as follows:-

B.M.A. supplies

Company's stocks

Subsidy on coal 1 Apr - 14 Jun 1946

15961 tons 100 tons

1,631,284.12

10,000.00 503,797.50

2,145,081.62

thought

Klim

3. It hardly seems appropriate to charge the subsidy for the period

April - June to the cost of operation to 31 March and the true cost of operation would therefore appear to be $783,342.51.

must be added rent ($732,841.37) and Head Office expenses (87,003.47) making a total of $1,523,192.35, instead of

$2,442,305.30. I think B.M.A. might also be expected to bear the subsidy for the month of April 1946 so long as the gross selling price was credited to B.M.A. account. Exchequer and Audit Department have no detailed figures for the China Light and Power Company but the position is no doubt similar.

?

4. It would

would appreciated if the Governor of Hong Kong could be arteet IN I should be glad if you would let me have your comments on this question and your proposals for apportioning the recoveries for stocks taken over.

be

B. There is one more point which ought to mentioned In the

Deposits at 30 April 1946 there is an item of $80,881.32 for 10% accrued pay, referred to in para. 17 of the Accountant General's report on the accounts. Since this amount was not paid within the B.M.A.

I am

Perhaps period

ん

on inolined to think that it should be credited to H.M.G.