MINING SCANDAL

Hawera Star, Volume L, 22 May 1930, Page 9

MINING SCANDAL

MUNGANA LEASES AUDIT INSPECTOR’S EVIDENCE ACTIONS OF EX-PREMIER. X'nited Preoo Association—By Electric Telegraph Copyright.) Received 2.1.5 p.m. to-dav. BRISBANE. May 22. Ex-Premier McCormack’s interest in the Mnngana mining leases and. liis Government’s assistance to the Chillagoe smelters some years back was the subject of further evidence before the Royal Commission. Peter McCaffrey, senior inspector in the Audit Department, related that while Tli- McCormack was Premier in 1926 he told Mr McCormack that the Chillagoe smelters were absolute “white elephants,” the losses on which were hundreds and thousands a year. Mr McCormack asked: him to make a thorough investigation and to furnish a report to him, not to the AuditorGeneral.

Witness also told him that Goddard, who was closely identified with the Mnngana leases, was greatly worried ihout Mnngana, the capital cost of which had risen £200.000. Mr McCormack replied : “What has he to worry about over Mnngana ? That is my pigeon and Theodore’s, not his.” McCaffrey expressed the opinion that the Auditor-General’s report in 1923-24 concerning the Chillagoe smelters was falsified.