OBSERVING THE LAW

Evening Post, Volume CVI, Issue 111, 7 November 1923, Page 6

OBSERVING THE LAW

DUTY OF LOCAL BODIES

A*DIT OFFICE DEFENDED BY ATTORNEY-GENERAL.

All members of local bodies are not lawyers, neither are they all conversant with what the law permits them to do in respect to contracts and matters pertaining to finance generally. Recently, considerable adverse comment has been made on the action of the Audit Office in taking proceedings against the members of a local authority for the recovery of penalties for a breach' of the Public Contracts and Local Bodies' Contractors Act, 1908. To-day, the Attorney-General (the.Hon. Sir Francis Bell) informed a Post" reporter that he had caused inquiriesto be' niade into the facts. Sir Francis Bell said it has been made to appear that members had been heavily ' penalised as a' consequence, of their carrying out the duties of their public office. The fact was that the board had on more than one occasion committed a breach of. the provisions of the Act by employing a member of the board to perform certain services, and the most serious aspect of the case was that vouchers made out i n a fictitious' name were passed for payment of those services. " Hie provisions of the Act referred to are as follow," remarked Sir Francis:—, Any member of a local body who is concerned or interested (otherwise than as a member of an incorporated company in which there are more than twenty members, and of which he is. not the general manager) in a contract tor the supply, of anything, or for the Performance of any work for the local body of which he is a member, or who knowingly supplies anything whatever to such local body, shall not be entitled to payment for the same, and any sum paid in respect of. any such contract or supply shall be recoverable, together with ten pounds in addition thereto, with full costs of suit, by any person who sues for the same in a. Court of competent jurisdiction. The amount recovered as having , been improperly paid shall be handed over to the local body from whose funds it was paid, and the person suing shall be entitled to the ten pounds with the full costs of suit. Any member of a local body who knowingly gives or joins in giving authority for, or who is a party or consents to, any such payment, shall pay the sum of twenty pounds, with full costs of suit, to any person who sues for the same in a Court of competent jurisdiction."

"The Audit Office was bound to take action to ensure that the provisions of the law were observed. In the case in question the Solicitor-General was consulted, and he advised that each member of the Board was liable to a penalty of £20 and costs in respect of each separate offence." .

The heavy nature of the penalties, declared the Attorney-General in conclusion, showed clearly that the Legislature regarded the offence as a most serious one, and the Audit Office considered, and the Solicitor-General agreed, that it would be failing in its duty if it did not take action to penalise such disregard of the law. The comments already published did not cover the whole facts of the case,, and the Attorney-General considered that in justice to the Audit Office and its officials the above statement should be made public. ' * .