XN000022-1979-01-10 — Page 18

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WEDNESDAY, JANUARY 10, 1979

DIRECTOR OF AUDIT, PUBLIC ACCOUNTS COMMITTEE REPORTS TABLED ******

THE REPORT OF THE DIRECTOR OF AUDIT ON THE GOVERNMENT'S ACCOUNTS FOR THE FINANCIAL YEAR 1977/78 AND THE FIRST REPORT OF THE RECENTLY CONSTITUTED PUBLIC ACCOUNTS COMMITTEE OF THE LEGISLATIVE COUNCIL WERE TABLED AT THE COUNCIL TODAY (WEDNESDAY).

THE HON. MISS LYDIA DUNN, NOMINATED TO SPEAK IN THE ABSENCE ABROAD OF THE COMMITTEE'S CHAIRMAN, THE HON. LI FOOK-WO, SAID MUCH OF THE VALUE OF THE COMMITTEE'S REPORT DEPENDED ON THE EXTENT TO WHICH ITS RECOMMENDATIONS WERE FOLLOWED UP AND IMPLEMENTED.

+WE HOPE THE GOVERNMENT MINUTE TO BE PREPARED BY THE FINANCE BRANCH, AFTER CONSIDERING THE RECOMMENDATIONS CONTAINED IN OUR REPORT, WILL INDICATE --- AND IN SPECIFIC TERMS - WHAT ACTION THE GOVERNMENT PROPOSES TO TAKE TO RECTIFY THE IRREGULARITIES BROUGHT TO NOTICE BY THE DIRECTOR OF AUDIT AND THE PUBLIC ACCOUNTS COMMITTEE AND, IF APPROPRIATE, EXPLAIN WHY IT IS NOT INTENDED TO TAKE ACTION ON ANY PARTICULAR MATTER,+ MISS DUNN SAID.

SHE ALSO SAID THE COMMENTS BY THE DIRECTOR OF AUDIT ON CERTAIN SHORTCOMINGS IN VARIOUS DEPARTMENTS AND BRANCHES OF THE GOVERNMENT SECRETARIAT SHOULD BE VIEWED IN A PROPER PERSPECTIVE -- BY VIEWING THEM AGAINST THE BACKGROUND OF THE TOTAL VOLUME OF GOVERNMENT TRANSACTIONS, THE BULK OF WHICH DOES NOT ATTRACT ADVERSE COMMENTS.

SHE SAID THE GOVERNMENT'S FINANCIAL TRANSACTIONS +ARE NOT ONLY SUBJECT TO A VALUE-FOR-MONEY AUDIT BY THE DIRECTOR OF AUDIT AND HIS STAFF, WHOSE INDEPENDENCE IS SECURED BY STATUTE, BUT THEY ARE NOW ALSO SUBJECT TO FURTHER SCRUTINY BY A COMMITTEE OF THE LEGISLATIVE COUNCIL TO ENSURE THE FUNDS PROVIDED THROUGH THE APPROPRIATION ORDINANCE HAVE BEEN SPENT IN THE WAY INTENDED+.

MISS DUNN NOTED THAT THE COMMITTEE'S MAIN AIM WAS TO ESTABLISH THE CIRCUMSTANCES SURROUNDING THE MATTERS REPORTED ON BY THE DIRECTOR OF AUDIT AND TO CONSIDER WHAT REMEDIAL ACTION HAS BEEN, OR SHOULD BE, TAKEN.

SHE SAID THE COMMITTEE DID NOT CONSIDER IT NECESSARY TO INVESTIGATE IN DETAIL EVERY OBSERVATION CONTAINED IN THE DIRECTOR OF AUDIT'S REPORT AND THEREFORE IT CONCENTRATED ITS EFFORT ON THE MORE SERIOUS IRREGULARITIES OR SHORTCOMINGS.

MISS DUNN ALSO APPRECIATED THE CO-OPERATION OF ALL BRANCH SECRETARIES AND HEADS OF DEPARTMENTS WHO GAVE EVIDENCE AT THE COMMITTEE'S MEETINGS AND THE ASSISTANCE GIVEN BY THE DIRECTOR OF AUDIT, THE DEPUTY FINANCIAL SECRETARY AND THE CLERK OF COUNCIL WHO WAS THE COMMITTEE'S OFFICIAL SECRETARY.

SHE SAID THE COMMITTEE AT NO TIME DETECTED ANY RELUCTANCE ON THE PART OF CIVIL SERVANTS, WHO APPEARED BEFORE IT OR ASSISTED IT IN ITS DELIBERATIONS, TO BE HELD ACCOUNTABLE.

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