The Gisborne Disclosures.

Daily Telegraph (Napier), Issue 6142, 7 May 1891, Page 3

The Gisborne Disclosures.

[FBB PBESS ASSOCIATION.I

(iiSBOBNB, Last night. At the meeting of the Harbor Board laefc night, when the report of the Finance Committee was under consideration, the chairman, Mr. Townley, stated that it was only when the Committee got the bank payingin slips that they saw where the arreara came in. The accounts had been regularly audited, and the system of book-keeping had been frequently altered to suit the fads of the auditor, until the accounts were in euch a jumble that no one could understand them The Board had depended upon the audit system to check the accounts, and see that everything was correct; the result of tbo investigation by the Finance Committee had revealed the fact that every safeguard they had thought of had broken down. They hud baen under the impreMsiou that a cheque received would not be br 'ken into until the amount was drawn by a cheque sigusd by the Board. Instead of that the secretary had a loose system of accounts, drew what he liked from the bank, and had unlimited cash at his disposal If the auditor had done his duty properly he would have seen a!l that was wrong. The books on the face of them showed errors which no auditor should have passed. The feeling of the Board was that the Government were liable for the losses sustained. Some of the cheques manipulated were large—as for instance, one for £L2B and two others for £103. Of the amount actually discovered iv default £1300 is rate money and £228 for the sale of cement, &c. A large number of cheques were recoveries through the K.M. Court. The Board decided to press for all amounts appearing on the books as unpaid in order to ascenain what amount of the £31b4 outstanding is really owing to the Buard by the ratepayers.