LOSS AT BELLAMY’S

Grey River Argus, 13 September 1946, Page 4

LOSS AT BELLAMY’S

MANAGEMENT CHANGED Disclosure in Parliament F.A. WELLINGTON, Sept. 12 Discussion of the estimates waopened by Mr W. J. Polson (N at ' Stratford), in the House to-nio-ht’ Speaking to the first item, he saief he was seeking the earliest opportunity of referring to an unpleasant task which the Parliamentary House Committee had been obliged to discharge last year. AH sorts of rumours, some of them unpleasant, had been circulating in Wellington, suggesting that something sinister had happened in regard to Bellamy’s, and that the House Committee had attempted to cover up what did occur. In view of this, said Mr Polson, he felt that the public should have a true account of what happened. The House Committee, which was set up to look after the management of the House, found that reserves which had been built up over a number of years by careful management of Bellamy’s, were being eaten into, and that, instead of profits, losses were being made. “We succeeded in getting an internal audit”, said Mr Polson, “and it was found that the manager was quite unable to account for formidable shortages in moneys for which he should have been able to account”. It was possible to get an audit only for a period, but this audit revealed such losses that immediate action had to be taken. A new manager was engaged forthwith, and a new head barman shortly afterwards. The result of this change was that what might, in a. full year, have been a four figure loss, had been changed into an actual profit, which, at the end of this year, might also run into four figures.

THOUSANDS OF POUNDS INVOLVED Mr Polson said the position was now being steadily retrieved, and the gross trading profits, which under the old management were about nine per cent., had jumped to 35 per cent, under the new management. It was obvious that there had been dishonesty to the extent of many thousands of pounds during the last few years in connection with the management of Bellamy’s. The Committee attempted, in conjunction with the responsible authorities who dealt with such matters, to sheet home these losses to those directly responsible, but, unfortunately, it had not been possible to prosecute those who should have been prosecuted in connection with the matter. When _it was discovered that dishonesty existed, the House Committee proceeded to’ clean up the business, and put Bellamy’s in a position to pay its' way. Because of rumours, he thought it necessary to speak as he did, and “whatever else we are, we claim to be honest men”, he said. The best thing to do was to tell the story, and let the people judge. Rt. Hon. P. Fraser said that the matter which worried him was the question of action to be taken following the disclosures, and, at his suggestion, the Auditor-General made an investigation. The Chairman, of the Joint Committee was unremitting in his efforts to track down what was wrong. Parliament was very jealous that its affairs should be in the hands of Parliament itself, and not of the Government. It had all been a matter- for the House Committee to decide, and, if there were grounds justifying prosecution, that course would •have been taken. There was' no cloaking up of the matter by the Committee at all, and everybody concerned was most anxious to clear up the matter.