SURCHARGE ON MEMBERS.

Manawatu Standard, Volume LVIII, Issue 302, 19 November 1938, Page 6

SURCHARGE ON MEMBERS.

BOARD CONTESTS ACTION. Per Press Association. INVERCARGILL, Nov. 17. The Audit Department has informed the Southland Hospital Board of its intention to make a surcharge of £33 on board members because Mr W. Grieve, while a member of the board, was also a member of a firm interested by sub-contract in altering an ambulance chassis purchased through the Health Department by the board from the distributing firm for which Mr Grieve’s firm is the local agent. It is the intention of the board to contest the proposed action. Mr Grieve is not a member of the present hospital board. The position arises under section 6 of the Local Authorities (Members Contracts) Act. 1934. Under section 127 of the Public Revenues Act, 1936, the Audit Office, if it considers any moneys belonging to or administrable by a local authority have been “unlawfully expended or applied, shall surcharge every member of the local authority jointly and severally” with the amount involved. It was stated at the meeting of the board that Mr Grieve had refused to refund the money, and was reported to have placed the matter in the hands of solicitors. The secretary said that the surcharge would involve 11 members of the board paying £3 each.