SECURING CONTRACTS

Hawera Star, Volume XLVII, 15 May 1928, Page 5

SECURING CONTRACTS

BRIBERY ALLEGED. SYDNEY CIVIC INVESTIGATION. evidence of witnesses. (UNITED I-KESS ASSOCIATION—BY ELECTRIC TELEGRAPH—COPYRIGHT.) (AUSTRALIAN PRESS ASSOCIATION.) SYDNEY, May 14. * Before the Royal Commission today, Air. Holman, counsel for Air. S. Y.‘ Ala ling, a city electrical official, requested permission for his client to have access to material dates associated with the Babcock and AVilcox tender for the Bunnerong power-house and plant. Mr. Shand, counsel for the Crown Solicitor, surveying circumstances connected with the tendering, declared that when the tenders were due to come before the City Council the Sydney manager for Babcock and- AVilcox was informed that hjs company would' have to pav £IO,OOO to get the contract, £BOOO being for an alderman and £2OOO for Air. Alaling. Mr. Shand said, in connection with the Bunnerong power-house, that in September. 1925, Air. Ala civ av, general manager of the electricity department of the City Council, recommended that tenders be called for the supply of a steam raising plant at the power-house. Tenders closed in February, 1928, and later the time was extended for 14 days. The l tenders were then opened and 1 referred to Air. Alaling, as Mr. AlacKay was abroad. Air. Alaling recommended the' acceptance of the Babcock and Wilcox tender for £622.877.

Air. Shand said it was proposed to prove that some time before the tenders were opened Air. Alaling suggested to Air. Arnott, manager of the Babcock-Wilcox establishment, that he take eight aldermen to see their works. After the. tenders were opened Air. Alaling rang Air. Arnott up and told him that the aldermen 1 wanted £7500 as a condition of acceptance of his firm’s tender. Air. Arnott protested. and he was told he would not get the tender accepted unless the monev was paid. PAYMENTS TO TRUST ACCOUNT. Later Alderman Holdsworth telephoned All*. that he wanted £IOOO. Air. Arnott then interviewed Mr. Alaling, who said: “Do not deal with Holdsworth; he will get his share out of the rest.” Air. Alaling added that the International Combustion Company, which also tendered, had paid £15,000 into the trust account for the purpose of getting the contract. The. aldermen wanted £IO, (XX), of which £2OOO was to go to Mr. Mating and- £BOOO to the aldermen. -Air. Arnott then agreed to pay this amount, and Air. Alaling said if the money was to come from abroad £SOO would ha ye to be added as expenses. Air. Mating interiewed a man named Albert, who was a diver, with whom lie was friendly and who had contracts from the City Council. _ Mr. Alaling asked him if he would mind, if certain moneys which were coming to him (Mr. Alaling) should pass through Albert’s account instead of his own. Albert was called suddenly to Melbourne, and said, lie was unable to adjust the account, but he arranged 'with a friend named Buckle to put it through Buckle’s account. All*. Making then informed Air. Arnott that the money was to be paid into Buckle’s account.

Mr. Shanci continued that Scotland Yard was rommunicnted' with, and. had ascertained that £10.600 had been sent by Bnhcoelc and Wilcox, of London, to the trsut account in Sydney, from which Albert had handed over to Mr. Maiinsr £6600, and a lady clerk in Alher’s office passed over £4OOO in instalments. making a total of £10.600. Mr. Shand detailed the manner in which the money was paid out at different times, and concluded by stating that Mr. Mating afterwards went to New Zealand without first securing leave, and a default assessment was issued hv the Taxation Commissioner. The result was that an officer of the Criminal Investigation Department was sent to New Zealand to interview Mr. Mating. Mr. Mating had stated that he knew all about it.* andi that the money was given him as a present hv Mr. Arnott’ in recognition o? his firm securing the contract; that he had been l taken down 'by Albert' for £2OOO. and that he had paid £BOOO to Alderman Green. ARRANGEMENTS TO RECEIVE MONEY.

Francis Buckle gave evidence that in response to a request by Albert he arranged to have the money which All>ert said was for a friend passed through his account, and he had _at various times drawn cheques totalling £10.600. which,, he had paid to Albert without knowing whom the money was for nor anything about the details of the transaction, but he did not think there was anything wrong. "Witness concluded by saying that he had never seen Air. Mating until that day. Albert, in giving evidence, said he was a marine diver and a registered money-lender. He had known Mr. Mating for a good number of years. The latter saw him in the street one day and asked him if he would allow a sum of money which was to come from England to pass through his account. He arranged with Buckle to receive it through Buckle’s account, ns he (Albert) had to go to Melbourne, hut neither Buckle nor himself knew where the money was coming from. "When the money arrived he told Air. Mating that Buckle had it, and would Air. Mating take it? The latter said he would take it in periodical amounts from £IOOO to £2OOO at a time. Witness then detailed how he had paid Alaling at various times, hut he never at any time knew where the money came from nor what for. He had remained friendly with Air. Alaling until he went to New Zealand, and there was no suggestion that he owed Mr. Alaling money. He saw Alaling just prior to his departure. Air. Alaling had said he was going away, and if he could get a. passport would not return. He wrote to ATr. Alaling while the latter was in New Zealand, asking him to get himself. Buckle and Miss Gordon out of the trouble caused by receiving the money, as none of them knew anytbihg about it or received any benefit. The hearing was adjourned till "Wednesday.