Cooks charter deal ‘in spite of legal opinion’

Press, 23 June 1978, Page 4

Cooks charter deal ‘in spite of legal opinion’

r f The last transaction leading up to the charter of flights for Cook Islands t|Party voters last March was j carried out in spite of a ; legal opinion that one of the -; company accounts involved . was a public account of the .Government. This evidence was given .: yesterday by the treasurer [!to the Cook Islands Government (James Chris e Ditch- . burn) at a hearing in Rarotonga of electoral petitions ■ alleging bribery and corruption during the Cook Islands I elections, reports the Press Association. The Chief (Mice of the [Cook Islands (Mr Justice! | Donne) was also told that I efforts to track down the [cheque books and bank] [.statements of the company,! Cook Islands Government ,New Projects, Ltd, had been unsuccessful. i The person named as the company’s secretary, a Government department secretary, no longer hdld the •position and his replacement know nothing about the; company. Both the Treasurer and the I Financial Secretary to the Government (Wiremu Kingi); said that they know nothing about the Government com-i pany. ; :

-| Mr Ditchburn said he fell f the intention had been tc s keep the Treasury unin--5 formed of the company. t Both witnesses described ; the actions that led them tc i ask the police to investigate ? the possible misuse of public funds. ’ Evidence was also given of ■recent instruc ions to freeze 'the two accounts of the com- • Ipany, one in Auckland and •the other in Rarotonga. ■ Under cross-examination, lit was confirmed that the ’Minister of Finance had '! approved of the action of Messrs Ditchburn and Kingi ■ in calling the police. 1 Mr Ditchburn said that he had seen a legal opinion from Mr D. A. R. Williams, ■an Auckland barrister appearing at the hearing as . counsel assisting the Court, Iwhich had confirmed that the New Projects company was a Government company subject to the provisions of the Public Moneys Act. He was “pretty certain” the opinion had been dated .March 16 and had referred to a verbal opinion given op March 14. I “It was certainly dated before the last transaction in ithe switching of funds,” he said.