MISAPPROPRIATIONS OF STATE MONEY IN 1948 WERE £8686

Greymouth Evening Star, 17 August 1949, Page 3

MISAPPROPRIATIONS OF STATE MONEY IN 1948 WERE £8686

WELLINGTON, August 16 (P.A.). —Misappropriations of public moneys and stores by’ departmental officers last year involved £8686, said the Controller and Auditor-General (Mr J. P. Rutherford) in his report presented to the House of Representatives today. The largest misappropriation was one of £6329 by the cashier of the Social Security Department, Auckland, who handled very large sums. Where a department was handling an immense number of transactions it was extremely difficult to keep checks so up-to-date and efficient that a defaulter could not escape detection for a time. Another considerable theft was £993 by a senior clerk in the Public Works Department, who falsified wages-sheets and in collusion with two contractors prepared and caused to be paid fictitious claims for lorryhire. All the offenders were convicted. A Public Service Commission inquiry found that officers who passed the claims for payment failed in their duty to see that, departmental instructions relating to payments were observed. They were suitably disciplined. A cashier in the Land and Income Tax Department misappropriated £869, most of it by suppressing copies of receipted demands. A postmistress in a small office converted moneys to her own use and falsified her returns. Altogether there were 59 cases of irregularities where departmental officers were involved and 37 cases other than those in which departmental officers were involved. Twentyeight of the latter type concerned the Social Security Department, from which various benefits were obtained by fraud. Convictions were obtained in 22 cases, one was adjourned sine die, but restitution was ordered, and five prosecutions were pending. Prison sentences were imposed in five cases and restitution ordered in 12. Probation was given in five cases. The total involved was approximately £2590. ’Among various State departments the sum of £43,384 had been allowed as paid in cases where receipts were unobtainable, lost, oi’ destroyed, or where vouchers or warrants were lost. x