TNAG-0316-FCO40-352-Reform-of-local-government-of-Hong-Kong-1971 — Page 148

CONFIDENTIAL

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the Urban Council would be required to present to Legislative Council within six months of the end of each financial year, a report for the year past together with audited accounts in a form acceptable to the Accountant General and the Director of Audit's certificate and such report as he considers appropriate. District auditors in the United Kingdom are required to disallow every item of account which is contrary to the law (except for itens sanctioned by the Minister of Housing and Local Government) and to surcharge the amount of any expenditure disallowed upon the person or persons responsible for incurring or authorising it. They must also surcharge upon the person responsible any item which has not been duly brought into account, or any item of loss or deficiency caused by negligence or misconduct. The intention is to give the Director of Audit similar powers, by law, vis-a-vis Urban Councillors, any sums so claimed being recoverable as a civil debt in the event of n n-payment. There should be a right of appeal by an aggrieved Councillor against any such decision by the Director of Audit, and this could be to the Governor. the Urban Council would set up its own tender board to approve the letting of contracts of all types, following standard Government rules (which are well established)

for such boards.

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the Governor should have general and specific powers of direction over the Urban Council on the lines of Section 15 of the Housing Ordinance Cap.283 which reads as follows :

15. (1) The Governor may, after consultation with the Authority, give to the Authority directions of a general character as to the discharge by the Authority of its functions in relation to matters appearing to the Governor to affect the public interest, and the Authority shall give effect to any such directions.

(2) The Governor may, after consultation with the Authority, give to the Authority specific directions for the purpose of remedying any

CONFIDENTIAL

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