ALLEGATIONS OF CORRUPTION

Dominion, Volume 21, Issue 191, 15 May 1928, Page 9

ALLEGATIONS OF CORRUPTION

SYDNEY CITY COUNCIL CONTRACTS

STATEMENTS BEFORE ROYAL COMMISSION

THE HALING CASE Before the Royal Commission investigating the affairs of the Sydney City Council serious charges of corruption were macle, counsel declaring that tenderers for works were informed that payments of considerable sums would have to be made before they would get a contract.

(United Press Association.—By Electric Telegraph.— Copyright.)

Sydney, May 14

Before the Royal Commission today, Mr. Holman, counsel for S. Y. Milling, requested permission for his client to have access to material and dates associated with the Babcock and Wilcox tender for the Bunnerong power-house, plant. (Rec. May 14, 9.30 p.m.) Sydney, May 14.

At the Royal Commission inquiring into the affairs of the City Council, Mr. Shand, counsel who is assisting the Commissioner, said that in connection with the Bunnerong powerhouse, in September, 1925, Mr..Mackay, general manager of the electricity department of the City Council, recommended that tenders be called for the supply of steam-raising plant at the power-house. Tenders closed in February, 1926. and later the time was extended for fourteen days. The tenders then were opened and referred to Maling, as Mr. Mackay was abroad. Maling recommended the acceptance of Babcock and Wilcox's tender for £622,877. Continuing, Mr. Shand said it was proposed to prove that some time before the tenders were opened Maling suggested to' Mr. Arnott, manager of Babcock and Wilcox’s establishment, that he take eight Aidermen to see their works. After the tenders were opened Maling rang Arnott up and told him the Aldermen wanted £7500 as a condition of. acceptance of his firm’s tender. Arnott protested and he was told that he wOuld not get the tender accepted unless the money was paid. Later Aidermen Holdsworth telephoned Arnott that lie wanted £lOOO. Arnott then interviewed Maling, who said: “Do not deal with Holdsworth. He will get his share out of the rest.” Maling added that the International Combustion Company, which also tendered, had paid £15,000 into a trust account for the purpose of getting the tender. The Aidermen wanted £lO,OOO, of which £2OOO was to go to Maling and £BOOO to Aldermen. Arnott then agreed to pay this amount, and Maling said that jf the money was to come from abroad, £6OO would have to be added as expenses. ■ Mr. Shand stated that Maling interviewed a man named Albert, who was a diver, witli whom lie was friendly, and had contracts from the City Council. Maling asked him if he would mind if certain moneys which were coming to him (Maling) should pass through Albert’s account, instead of his own. Albert was called suddenly to Melbourne, and said he .would be unable to adjust the account, but he arranged with a. friend named Buckle to put it through Buckle’s account. Maling then informed Arnott that the money was to be paid into Buckle's account.

Mr. Shand continued that Scotland Yard'was communicated with, and it

had ascertained that £10,600 had been sent by Babcock and Wilcox, of London, to a trust account in Sydney, from which Albert had handed over to Maling £6600, and a lady clerk in Albert's office had passed over £4OOO in instalments, making .a .. total of £10,600. Mr. Shand detailed the manner in which the money was paid out at different times, and concluded by stating that Maling afterwards went to New Zealand without first securing leave, and a default assessment was issued by the Taxation Commissioner. The result was that an officer of the Criminal' Investigation Department was sent to New Zealand to interview Maling. Maling had stated that lie knew all about it, and that the money was given him as a present by Arnott in recognition of his firm securing the contract; that *he had been taken down by Albert for ,£2OOO, and that he had paid £BOOO to Alderman Green. '

Francis Buckle gave evidence that, in response to a request by Albert, he arranged to have the money which Albert said was for a friend, passed through his account, and he had at various times drawn cheques totalling £10,600. which he had paid to Albert, without knowing whom the money was for, nor anything about the details of the transactions, but did not think there was anything wrong. Witness concluded by saying that he had never seen Maling until to-day. Albert, giving evidence, said he was a marina diver and a registered moneylender. He had known Maling a good number of years. The latter saw him in the street one day, and asked himif he would allow a sum of money, " which was to come from England, to pass through his account. He arranged with Buckle to receive it through Buckle’s account, as he (Albert) had to go toMelbourne, but neither Buckje nor himself knew" wffiere" the money was coming from. When the money arrived, he told Maling that Buckle had it, and asked Maling if lie would take it. The latter said he would take it in periodical amounts, from £lOOO to o £2OOO, .at a time. He then detailed how tie had paid Maling at various times, but never at any time knew where the money came from, nor what for. He had remained friendly with Maling until he went to New Zealand,," and there was no suggestion that he owed Maling money. He saw Maling just prior to his departure, and Maling said he was going away, and if he could get a passport he would not return. He wrote to Maling while the latter was in New Zealand, asking s him to get himself, Buckle, and Miss Gordon out of the trouble caused by receiving the money, as none of them knew anything about .it, and received no benefit from it. The hearing was adjourned till Wednesday.