THE AUDIT COMMISSION.

North Otago Times, 24 October 1905, Page 2

THE AUDIT COMMISSION.

By Telegraph. Wellington, Oct. 2a.The Audit Commission resumed its sittings this morning in Chtun l bcrs, when till counsel were present, including Air Jellicoe, counsel for Mr Fisher, who Says he had 110 application to make in Clmm-. bora, and therefore had no call to bo present. The r Honors decided the order of procodiiro as follows : Tho threo Government dejiartmcnls-Audit, Treasury, and Dcfcnce-to open; Mr Jellicoo to follow (or Mr Fisher; Mr Willis, Into of tho Cliristohurcli I'ost Oflico, then to be heard; Dr i'iudlay -to couio next on behalf of Captain Kcddon. It was also decided to have no opening addresses, but to take the evidence at 'mco, 'lho opening of tho Commission was enlivened by an encounter between Mr li. CI. Joilicoo and tho lleuch, After tho latter had stated the order of proceduro determined 011, MV Jellicoo said he desired to ask what order of reference they were working under, and ii the original order had been amended, and by whom, Judge Denniston said that tlwy wcro proceeding under tho order of reference road in Court which, as ho hail already intimated, any party was at iibei ty to inspect, Mr Jellicoo endeavored to argiio the matter, b'ut tho Court refused to hear him« Ho then nskod to be allowed to i%kj) an application in regard to tho interpretation of the order or reference, but'the Court ruled that any such application must be mado in writing. They had settled all theso matters in Chambers. Mr Jellicoo had been notiOad, and did not chooso to bo present, and Ihey would not lmve them argued now. Upon counsel persisting, ho was ordered to sit down, and did so, saying that 'ho might as well leave tho Court altogether If the Bench dorlined to hear him.. Mr flkcrrett was proceeding to call the first witness when Mr Jellicoo asked that all witnesses, should be ordered to leave the Court. After some consultation, tho Hench agreed to this, and Mr Jellicoo then aslcod for a roasonablo time to 011ablo him to put in writing a notice of motion of urgency before Mr' Sbvrett proceeded with his examination. Tnis led to another skirmish between the Bench and the Bar, which ended in tho Conn missioners positively declining .to accede to Mr Jellicoo's request, ami then the first itness was taken. The first witness called wns Robort Penny Willialns, assistant a ccounlant in the Defeneo Department, Ho described the system of voucher payments and the' checks employed. Mr Jellicoe asked if tho Department's hooks referred to wero available to inspect a particular entry and not the whole of the content!) of tho bo o ks. Mr Skerrett, for tho Department, said that there was no objection to in-i speut the whole contents if thOslnspectioti was made under the supervision oi the Commission. Mr Jellicoe: ■'* I am thankful even for small crumbs,'-' the witness was being further examined as to whether the books disclosed any pay* nients to Captain .Seddon for reorganisng the defence stores, when Mr Jellicoo interrupted and said this was secondary evidence. The books should be allowed to speak for themselves. He was there to show that the system of audit was simply' a farce, and that the door was opened to fraud. The Court insisted that Sir Jellicoe should conflne himself to the legal aspect of his contention, which they eventually ruled against liltii. Witness said that there was no trace of such a payment to Captain Seddon, Witness was" of opinion that no payment could lie made without being shown on the Defence Department or Treasury hooks. Mr Jellicoo cross-examined witness as to the Imperial payments, and said that he proposed to show that the Defence Minister, as 'the result of an ar. rangeinent made with the Government, had the power to dispense with any audit in the colony in respect to a certain class of payment,- The Chairman said that the w tness had already admitted tlmt arrangement was "made lor post audit instead of pre-audit. Witness said that he would " stick up an account if ho thought it fraudulent, oven though it were certified to by a certifying officer.H Captain Seddon drew a payment from the Imperial authorities the bank might cash the cheque without it appearing In the Now Zealand Defeneo Department's books, but it would appear in the other department's books. (living evidence l/eforo the Audit Commission to-day, Kobert Williams, Assistant Secretary in tho Defence Department. said he could lind no.record of ft payment of between £7O and £BO to Captain .Seddon.- 110 was satisfied tho linyment could 'not have been mado without an entry appearing in tho books of the Uei'artment,- It would not be VP 9 " sible fur such payment to be mado without tiie voucher pass ng through tho Defence Department.