A
344
257. Nearly half a million dollars per annum are expended by the Sanitary Department, yet no proper books are kept in the Department of this vast expenditure. There is neither a journal nor ledger and the so called cash book is merely an apology for the name, and for all practical purposes is merely a replica of the Bank pass book. The smallest firm in Hongkong could not conduct its business satisfactorily with such books, and it is probable that many individuals keep much better records of their own private affairs.
258. It is true there are a few auxiliary books. For instance, the stock keeper keeps a stock book and the Secretary keeps a delivery order book, butes there is no check on these, such as would be the case if a proper journal and ledger were kept, they are almost valueless as a protection agai' st abuses.
259. As regards the stock books kept at the District Offices, the Secretary said: "As a matter of fact I have never seen these accounts (stock books). When "I want any information, I have always had it, therefore as far as I know, the store accounts are kept ".
260 It would be impossible without turning up files of old papers, vouchers and delivery order counterfoils (which are easily lost or destroyed) for an auditor to know what sums of money were owing to or by the Sanitary Department.
281. All the correspondence of the Depart ment, unless marked confidential, has been first opened and read by a Chinese clerk, before being passed on to the Secretary. Another Chinese clerk has been in the habit of translating contractors' accounts and rendering their bills for them to the Department in English. The possibility of abuses under such a system is
obvious.
THE HONGKONG WEEKLY PRESS AND
262. Further, the same clerk has been in co- partnership with one Au Sui Shang carrying on business under the name of the Man Hing. The Man Hing shop was started with the sole object of obtaining the Sanitary Department contracts and did obtain the small stores contract. The small stores contract was formerly held by Lui Chi. As Lui Chi would not allow Lo Mau Kai a share of the business, the latter arranged a partnership with An Sui Shang and obtained the contrast. Subsequently $200 or $300 was paid by this partnership trading as the Man Hing to Lui Chito induce him to retire from the field and not tender again". The Man Hing firm were always able to retain the small stores contract because Lo Man Kai, knowing the lowest tender, was in a position to tell Au Sui Shang to what extent (if any) his tender should
be reduced.
263. The fact that the Man Hing, a shop with virtually nothing but a sign board as their stock. in-trade, that is to say middle men pure and simple, being able to undersell the very persons from whom they bought the goods should have awakened suspicion, and points to jobbery in the way of short deliveries. The Secretary did in fact get as far as "wondering how they could supply the goods at the prices." The same clerk (Lo Man Kai) was also a partner with Sam In who held the scavenging and conservaucy contract at Yaumati, (Sam Iu being formerly a scavenging coolie) but subsequently sold his share of the business to his partner the said sam In Soou after the Commission commenced sitting, Lo Man Kai absconded.
264. It frequently happens that Iuspeolors recommend the quantity of stores to be ordered as well as the source of supply, and their requisitions initialled by the Medical Officer of Health are signed by the Secretary or chopped with his chop. Having got their requisitions signed or chopped, the Inspectors frequently obtain delivery direct from contractors. The Secretary's chop is left lying about the office during office hours. Here again the possibility of abuse is obvious. Although there is no evidence to show that such has been the case, under the existing system there is nothing to prevent an Inspector only taking delivery of part of the goods specified in such requisitions and receiving a monetary consideration from the supplier for the undelivered portion. There is no check of any kind other than a possible casual enquiry by the Medical Officer of Health or the Secretary.
265. The Acting Principal Civil Medical Officer claimed to supervise all payments, but said they did not pass through his hands. He
would know the money voted by the Legislative; Council had been spent, but would not know how it had been spent.
266. The Principal Civil Medica! Oficar also claimed to supervise all payments but admitted in the earlier part of his examination that proper books were not kept. He had had | "to complain of them over and over again". Subsequently he qualified this statement. Under all the foregoing circumstanes, it is not difficult to conceive that corruption would be rife, as it was rife in the very heart as it were of the Department.
•
267. The Principal Civil Medical Offer claims to be the administrative head of the Sanitary Department but there is nothing in the evidence before the Commission to show in what way this has been effective. Under the Public Health and Buildings Ordinance No. 23 of 1903, his powers have been made almost despotic while the functions of the Board itself have been whittled down to those of an Advisory Committee. e therefore cannot lay any of the blame for the existing state of affairs on the shoulders of the Board.
268. To quote from the Landowners Petition to His Excellency the Governor, dated 26th September, 1902, "With an ideal man (whose succes ors at least o uld not be assured) a despotic system may be the most convenient as it is ot'erwise certainly the worst."
269. The Assistant Swretary should be a man with some commercial training, p eferably a book-keeper, and should be of British raga.
270. Finally, we recommend that proper books, that is, a cash book, journal sud ledger be kept. Also as an auxiliary book one containing com. plete records of all contracts for materials supplied to or sold by the Sanitary Department and all monies and goods disbursed or received thereunder,
271. The store keepers should furnish the Secretary with a weekly return of all goods received by them as well as those delivered by them to the different Inspectors in the Health Districts which they supply. A summary of these returns should be passed through the jourusl and ledger at least monthly so that the Secretary may be in a position to know. at any time, what quantities of the various kinds of stures are or should be in hand.
272. The Department should acquire all its own stores and distribute to the various depota. Ou no account should Inspectors be allowed to make direct requisitions on contractors.
273. Ihat all correspondence be first opened by the Secretary or the Assistant Secretary. That the use of a chop be discontinued, and that the composition of the staff in all the more important posts be entirely reconsidered.
274. At a meeting of the Sanitary Board he'd on 17th December, 1903, Dr. Atkinson, who presided, moved:-
"That the revised Standing Order be m de by the Board under section 1 of the Public Health and Buildings Ordinance 19-3."
This was unanimously agreed to.
On the 31st December, 1903, the minutes of the preceding Meeting embodying the above resolution were confirmed.
275. here were two sets of Standing Orders submitted and passed :---
1. For the regulation of procedure of Board, 2. For the guidance of officers and servants. It is with regard to the latter that we desire to report.
By sub section No. 1 of section 1 of 'rdinance No. 1 of 1903, the Board had power to make Standing Orders for the guidance of its officers and servants, but in section 5 of Ordinance No. 23 of 193, repealing part of above mentioned sub-smotion No, I of section 14 of Ordinance 1 of 1903, the words giving the Board the power to make such Standing Orders were omitted.
276. The question arises whether it was the intention of the Legislature to take such power away.
The Attorney General s-id by the Amending Ordinance it was only to recognise by Statute the Department which already existed.
277. It seems clear that Dr. Atkinson, who was conversant with all amending clauses, and was the principal promoter of the Amending Ordinance, never contemplated that the Board's power to make such Standing Orders and enforce them had been taken away by the Ordinance, or he would never have asked the Board on 17th
i
[May 27, 1907.
December to make Standing Orders which a Statute which had been read a third time and pissed the Committee stage, before he submitted Board of the power of making or enforcing them. the Orders to the Board, would deprive the
Atkin on submitted the Standing Orders, which 278 Io further proof of such conclusion, Dr.
had been passed, for confirmation by the Board on 31st December, whereas the power had, ha
Dicimber. Axys, been actually taken away on the 19th
Copies of these Standing Orders were printed and circulated amongst the Members of the Board, making them believe they were operative and enforceable by the Board.
279. On 12th June, 1906, Dr. Clark, as
question, said whether or not the Standing President of the Banitary Board, in reply to s Orders could be enforced by the Bard was a technical question, which he should like to refer to the Law Officer of the Crown to give a definite raling on.
the President, Dr. Clark, said:-That the
280. At the following Meeting of the Board
Standing Orders made by the Board in 1903 could still be enforced, but only so far as such
cedure at Meetings of the Board. Standing Orders related to regulations or pre-
Standing Orders for the guidance of officers and servants of the Sanitary Department were now administered by the Principal Civil Medical Officer as administrative head of the Department.
281. The above opinion must have greatly surprised Dr. Clark, and as President of the Bard he was apparently unaware that these himself, as he told the Commission on 30th May Standing Order had to be administered by that the Sanitary Board had authority over all officers and servants of the Sanitary Depart- ment, and they were all under the Sanitary Board. He specially mentioned the Medical Officer of Health, as Chief Executive Officer might be directed by the Board.
Standing Orders to the Board in the first place 282. Dr. Atkinson says the submitting of the
them, because he thought the powers had been was an oversight, and that he did not submit
taken away. That is hardly consistent with his next answer to the effect that he was in. doubt at the tim, else he would not have sub- mitted them to the Board. Dr. Atkinson also says that there was a doubt in Dr. Clark's mind
as to whether the Board could anforce these Standing Orders. HA never informed the Board of the change which the pissing of the new Ordinance had with their issuing and enforcing Standing Orders, although he said he
had no doubt in his own mind as to the matter. Shortly after the passing of the Amended Ordinance, he did put the question to the Attorney Garers!.
283. We are of opinion that the Board must have full power to order and direct the officers and servants to carry out their orders, which orders should pass through the hands of the Secretary, whose duty it should be to see them carried out.
284. It appears to the Commissioners that consider ble laxity has existed in the past as to the amount of supervision given to the subordinate members of the Staff more parti. oularly with regard to outdoor staff.
There does not appear to have been any particular rale laid down and it has been left to the individual Medical Offloor of Health to act in this matter as he considered best.
285. While holding the position of Medical Officer of Health, Dr. Pearse appears to have devoted a considerable portion of his time, as much as could be spared from his other dusies, Inspectors. On the other hand, we have it on to personal supervision of the work done by the Dr. Atkinson's own evidence that up to
recent date Dr Clark as Medical Officer of Health rarely left his office, practically giving little or
no supervision to the work of his subordinates.
286. We understand that this state of affairs has to a certain extent since been modified, but the fact remains that the excessive powers given to the Inspectors, coupled with insufficient supervision, resulted in considerable Isxity on the part of the Inspectors as to the excution of their duties, and is responsible in a grant measure for the corruption which exista.
287. Evidence has been given to the affect that some of the Inspectors taking advantage
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