Page 6.
In reply to on enquiry by my predecessor the Director stated that the high cost of transport was duc to the fact that a ship was specially chartered for this purpose at $5,000 a day, which had to make a thirty- · five day voyage, in ballast outwards, to load the timber.
22.
In response to a further minute by my predecessor asking for informtion as to the ultimate disposal of the timber and what Government had lost or gained on the purchase, the Controller of Stores has recently informed the Financial Secretary that, while the Stores Department records show that all the timber has been issued, there are still a large number of logs in stock and that the timber was considered by the Public Works Department to be of very poor quality. It appears that the value was still further reduced by the logs being out in two lengthwise after delivery. The Controller of Stores expresses the view that Government has incurred a heavy loss on the deal but this has not yet been ascertained. Further information is awaited.
23.
During the examination of the Government Stores Department records, it was observed as a result of a surprise audit check of the stores being transported through the Stores Department gates on "gate passes" that considerable quantities of stores were being issued with- out supporting vouchers. The matter was investigated by this Department
nd verbal information was obtained to the effect that these issues were in respect of stores received in fulfillment of Briti sh Military Müministration procurement programmes, which were under the control of the Supplies, Trade and Industries Department, and that the issues wore made on the authority of an Officer of that Department, who was seconded as liaison officer to the Stores Department, for disposal by sale to the public by the Marketing Section of the Supplies, Trade and Industries Department.
24.
The Stores Department issue procedure has since been regularised by the use of Issue Vouchers and a list has been compiled from the Stores Department "gate passes" of all stores issued in the above manner. The Director of the Supplies, Trade and Industries Department has been asked to account for the receipt and disposal of these stores.
25.
During the examination of the stock ledgers of the Marketing Section, it was observed that a considerable quantity of canned goods had been written off ledger charge in July and November, 1947, as "destroyed by dumping" after condemnation by the Health Department.
As mentioned in paragraph 11 above, the matter was reported to Government by Ly predecessor who pointed out that the condemnation of these goods, and of all stores, and subsequent writes off, should be dealt with in accordance with Colonial Regulations.
26.
it
It was stated by the Director that the cost of the goods dumped could not be assessed as the bulk formed part of a purchase of war surpluses on an 'as is' basis of so much a ton" which were received in May, 1946. On the basis of selling prices fixed by the Director, however, it was ascertained that the value of the goods dumped anounted to $651,571.34, and in view of the Director's advice to the effect that selling prices were fixed so as to. "bring in 25% over cost if all (goods) were sold" it would appear that the cost could be roughly set at $500,000, to which should be added the cost of dumping amounting to approximately $10,000.
27.
In camenting on the matter to the Financial Secretary, my predecessor observed that he was "not convinced that a policy which aimed at a lower return to Government and to the traders selling the goods, would not have resulted in far more goods being sold and possibly far
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