Sessional_Paper_1893 — Page 577

( 13 )

The Chairman. When was the first part of this book (Treasury Rent Roll) supposed to be written up?

A.-It ought to be made up with the rest.

Q.-As soon as you got the Rent Roll from the Land Office?

A.-There used to be a calculation made at the end of the book, in some of them at all events. It was pasted in the end and showed whether the book differed from the Rent Roll as supplied by the Land Office. There were two columns showing whether our books were more or less with references to the reasons. That was caused because the Land Office Rent Roll did not reach us in time and we had to go on the last year's

assessment.

Mr. Thurburn.-It seems to me that the real reason these defalcations were not discovered is owing to a want of balancing. First of all the Auditor should have checked the receipts with the amount that should have been paid.

The Chairman.-The Rent Roll is the basis of everything. What he ought to have done was to check the receipts with the amounts there.

Mr. Thurburn.-You know that for the year there is $192,000 due, there is no swindling about that. That is due at a certain period, say January 1st, then if at the end of three or six months you compared the amount of what ought to have been paid with the cash you have received, the balances would show whether there had been any defalcation. You know how much you have received because it is in the Bank.

A.-We could not cook this book if it was properly examined.

Q. Although swindling might go on during the three months, or any given number of months, it would certainly be found out where it was when a balance was taken.

A.-When the book was balanced at the end of the year it ought to have been found out.

The Chairman.—Mr. Freire examined it before, did he not?

A. Yes. I think the 1887 book is in Mr. Freire's signature and Dr. Stewart's.

Mr. Thurburn. Mr. Nicolle ought to have detected this.

The Chairman. Yes, you have the amount that ought to be received, you have also got what you have received.

Mr. Thurburn.—The account ought to be exactly balanced periodically. [(To Hon. N. G. Mitchell-Innes) Alves, I suppose, has not pleaded guilty so his trial will have to go through before we ask him any questions?

A. He would have pleaded guilty, but he has been got at and is going to plead not guilty.]

At this stage the Commission adjourned its sitting until 3 o'clock in the afternoon.

Upon resuming, Cheung Wan Chung, was called.

The Chairman.-What is your name?

Witness.-Cheung Wan Chung.

Q.--What are you

?

A.-I am shroff in the Treasury.

Q.-And your duties are to receive sums paid for Crown Rent?

A. Yes.