THE AUDIT ENQUIRY.

Bush Advocate, Volume XVII, Issue 247, 25 October 1905, Page 5

THE AUDIT ENQUIRY.

Per Press Association

Wellington, October 24,. Mr Grey said lie had sent a memorandum to the Defence Minister on August 3rd last to the effect that a careful search of the Defence and all the Treasury books had been made, and that no trace of receipt of a claim from or of a payment to Captain Seddon of any sum whatever for reorganising defence stores could be found. That was in answer to a memorandum from Mr Seddon, asking whether a voucher for between £70 and £80 in favour of Captain Seddon had been passed through.

Mr Jellico : But could not a forged voucher be passed through as a genuine one ?

Witness: I could not say, but I don't think so.

Mr Jellicoe: Say the voucher for which we are looking was substituted for some other voucher in your books? Witness : It would be impossible. Mr Jellicoe : Could not a voucher in the possession of the countersigning officer be substituted for a voucher that had gone through your office ? Witness : NNyo y because the Treasury would detect it as soon, as it came back to Wellington. Cross-examined by Mr Willis : Captain Seddbn joined the department on. March 31, 19u3. A voucher, to obtain the signature of the authorising officer, would have to pass through witness' department, because he (witness) was the authorising officer. If all the officers were fraudulently acting in collusion, it would, o£ course, be possible for a fraudulent voucher to be passed through, but it would be discovered ere long. ■ Considerable time was taken up during the examination of this witness by heated controvereises between the bench and Mr Jellicoe.

Frederick Silva, assistant defence storekeeper, said he was familiar with the records of the department for 1903 and 190 i. There had been no reorganisation of defense stores during tbat period. No payment was made to Captain Seddon for supplies to or services in connection with defence stores. In hia opinion, if such service had been rendered by Captain Seddon, it would have been entered in witness' books.

Wellington, This day. This morning Frederick Silva, assistant Defence storekeeper, was examined as to the transfers of stores and the methods of the Department. Robert J. Collins, assistant secretary of Treasury, said he had searched; all accounts out of which it was possible Captain Seddfon could be paid a sum for organisation of Defence Stores, or for any other purpose, and said he had found no trace of any such payment. It was absolutely impossible that any such cheque could have been paid without the record appearing in the Department's books.