BANK OF NEW ZEALAND

Evening Post, Volume CVII, Issue 136, 10 June 1924, Page 6

BANK OF NEW ZEALAND

The recent election by shareholders of the Bank of New Zealand of Mr. R. W. Gibbs to be one of their two Directors will render vacant the position he still holds of Chief Auditor when he takes his seat upon the Board of Directors. As was pointed out in these columns on 31st January last, the position of Chief Auditor to the Bank of New Zealand is one "calling for special and high qualifications. .. . The exacting nature of the work required to be done must necessarily, at times, impose pressure upon the most robust of constitutions." "With surprise we learn from a contemporary, a Government journal, that ■

the impression prevails in certain, circles that the Government has in mind the appointment of an ex-officer of the Bank who has been for some time in retirement from active banking, having reached the age limit in the service. I* should be understood that this appointment is made by the Minister of Finance, and the salary fixed by the Government, but paid by the Bank. The reasons for this freedom and independence of any control but that of the Minister enjoyed by the Chief Auditor should be perfectly obvious when it is vemembered the great direct and indirect interests held by the State in the Bank of New Zealand. The Government owns one-third of the share interest, and it' appoints two-thirds of the Directors of the Bank. The Chief Auditor (sometimes not inappropriately called the Government Auditor) in London as well as in New Zealand is, then, a Government officer. The Chief Auditor may be constrained tr> severely criticise the conduct of the affairs of the Bank and, possibly, take a most decided stand against pursuit of a policy that, m his judgment, will not be in the best interests of the institution, the - Government, the shareholders, or the State as a whole.

With one exception, the appointment of Chief Auditor has been made from the officers of the Bank of New Zealand; in two instances the; Chief Auditorship was the stepping-stone /to the position of General Manager of the Bank. The past appointments of, first, Chief Auditor, and next, General Manager, are not now in question. Should the reverse, or something like it, take place and a banker who has reached the retiring age, who has in fact retired, is appointed Chief Auditor, then it would seem that the Government will adopt a very short-sighted view of the scope of this important office. It is not unthinkable that the Chief Auditor of the Bank of New Zealand, if appointed from the personnel of the Bank, may have .occasion to sharply -criticise the actions of his former superiors in office or even his own past actions when formerly a servant of the Bank. The post, then, being an exceptional one, if it is to be of value must be occupied by an exceptional man. So much we pointed out nearly six months ago when the present Chief Auditor announced his intention to seek election to the Board. The appointment of the successor to Mr. Gibbs rests with the Minister of Finance, who in filling it will be expected to make a selectiou from those still possessing at least some qualifications that Time has taken from most men who have retired from a lifetime spent in the .onerous jgrufesgioA of banking,;