EPIDEMIC OF FRAUD

Dominion, Volume 18, Issue 98, 21 January 1924, Page 7

EPIDEMIC OF FRAUD

CONNECTED WITH FRENCH RECONSTRUCTION COLLUSION OF PUBLIC OFFICIALS By Telegraph—Press Association. Copyright. London, January 18. The “Daily Chronicle’s” Paris correspondent says that an epidemic of fraud in connection with the reconstruction of the devastated areas has been revealed by a Parliamentary Commission. One textile firm at Lil.lo defrauded the Treasury of -00 million francs. A mining company dishonestly profited to the extent of another 200 million. A sugar refinery profited by 70 millions. . Extensive frauds at Dunkirk, . with the collusion of public officials, brought in 800 millions. The method was to divert large consignments of sheet iron intended for rebuilding. These wore sent to Calais, Boulogne, and Dunkirk, and shipped overseas, where they were sold for immense profits. The fraud included several cargoes of sheet iron surreptitiously shipped to Japan after the earthquake. An inquiry has opened. —Aus.-N.Z. Cable Assn. ASTOUNDING INCREASES IN CLAIMS (Rec. January 20, 5.5 p,m.) London, January IS. Tho “Morning Post’s” Paris corre Bpondent says tho commission at Lille investigating the alleged frauds in the devastated regions is finding its task enormously greater than anticipated. A typical example of the allegations concerns a-textile mill. Immediate}' after the armistice the proprietor reported that ills mill was intact to the last pin, and could resume operations immediately : but two years later he claimed 700,000 francs for material damages and four millions for supplementary damages. The local authorities passed the former claim, but sent the latter to the Ministry in Paris, which not on tv sanctioned but increased the four millions claim. The commissioners are astounded to discover in cases, probed up to tiic present that the approximate claims for war damages made in 1917 had by 1920-21 been multiplied ten, twenty, end fifty, and, in sonic cases, a hundredfold. A large number of arrests are expected.—Aus.-N.Z. Cable Assn.