DELINQUENT OFFICIALS.

Auckland Star, Volume LIV, Issue 170, 19 July 1923, Page 4

DELINQUENT OFFICIALS.

—■— ■ MALVERSATION OF FUND*. THE FTDEUTY GUARANTEE. (By Telegrapn.—Pres« Association.) CHRISTCHURCH, Wednesday. A proposal that municipal corporis tione should provide a fund as assurance against defalcations was discussed at to-day's sitting of the Municipal Conference. The eubject was introduced by a remit from Pahiatua, which read as follows: "That the Municipal Association obtain legislation to enable it to provide a municipal officers' fidelity guarantee fund, such fund to be provided by levy upon all municipal corporations in the Dominion on the basil of capital value, all municipal corporations automatically to come under the operation of the Act on the expiry of existing policies, and be reimbursed for the amount of defalcations not recovered, provided the corporation has laid an information against the delinquent officer." Mr. O. N. C. Pragnall supported the remit. He stated some time ago defalcations had occurred in a certain borough. The officer had been insured in a fidelity insurance society, but the society -was contesting the council's | claim, and the council was likely to | secure only £200, whereas the defalca- I tions amounted to over £500. The | council would have to stand the loss. | Defalcations seemed to be in the air at > present, and every time one picked up t newspaper one read of defalcations bj officers of some public body. He intimated his intention to move at the conclusion of the business of the conference a motion dealing with the matter. Mr. H. Tapley (Dunedin) suggested the Municipal Association should approach insurance companies and tell them that their policies were not of value to the various local bodies concerned, and to ask them if they would be prepared to amend their policies. The remit was lost on the voices.