CHAIRMAN PROSECUTED.

New Zealand Herald, Volume LIX, Issue 18130, 30 June 1922, Page 7

CHAIRMAN PROSECUTED.

POWER BOARD CONTRACTS. INTEREST IN A FIRM. NOMINAL PENALTY IMPOSED [BV TELEGRAPH.—OWN 00BBE9P0NDENT.] TE AKOHA. Thursday At the Magistrate's Court, Te Aroha, before Mr. J. H. Salmon, S.M.. five separate informations were brought by the Audit Department against the chairman of the Thames Valley Electric Power Board, Mr. F. M. Strange, as being concerned and interested in certain contract* alleged to have been made with Willis Bros.,' Ltd., an incorporated company of less than 20 members, of which he was a shareholder. Mr. Paterson, of Auckland, for the Audit Department, stated that unfor» tunately at the time Mr. Strange wa|j elected chairman of the board he was a member of Willis Bros., Ltd., a small I private company, and therefore when certain work was lone and goods supplied for the board by Willis Bros., Ltd., , Mr. Strange's office became vacated by virtue of the provisions of the Electric Power Boards Act and he became liable to the penalties imposed by the Act. No doubt the position arose more by an error than through a wilful act on Mr. Strange's part. While it was recognised that Mr. Strange was a good man in the position and had done a lot for the board the Audit Department was bound to take action to vindicate the attitude it had taken up. Hence these proceedings. Ineligible lor Re-slection. A substantial penalty was not asked for, but a sufficient penalty should be imposed to reimburse the Government the expenses the Audit Department had incurred in the matter. Mr. Strange's position had automatically become vacant under the Act and he was ineligible for re-election for a period of three years • from the date of the contract. Under the circumstances Mr. Paterson had obtained authority from the department to withdraw four of the informations. Mr. P. GiLchrist. on behalf of Mr. Strange, urged that only a nominal penalty (if any) should bo imposed. The penalty clauses as applied to power boards were very drastic by comparison the Acts dealing with other local bodies. The Municipal Corporations Act had been amended last year to widen the scope for members of local bodies who happen to be directors of private trading concerns. The Counties Act now allowed such contracts up to £50 per annum. The items now in question were only very slightly in excess of tfee legal limit, being £6 for one contract or £10 for the year. He suggested that the offence was only a. trivial one. There was a hardship on Mr. Strange., who was practically the pioneer of electrical development and reticulation of the Thames Valley. He had been self-sacrific-ing in time and labour on behalf of the inhabitants of a groat area. His disqualification would be a severe loss to the community. Payments to Rival Firms.

The payments to Willis Bros., Ltd., were for office wiring, purchase of a. radiator, some small purchase of benzine, garage of car. and other items. The whole amounted to £40. During the like period there had been paid to other local engineers, A. J. Clarke £256, and D. M. Wallace. Limited, £3275. Such was an indication that the board was only giving Williß Bros., Ltd., work arid ' s-applies ■ when sam« were not available elsewhere. The whole thing was accidental. . There was no dishonesty in the matter, and the purchases were in the best interests of the board. Mr. Strange's fellow members on the Power Board were keeping his position as chairman open for him until this nase was decided. By Section 9S of the Power BoicdV- Act any fine imposed wpnld fie oayablo to the Power Board itself. Mr.' Gilchrist had authority for stating that the Pow<»r Board did not wish for, and would net accept, a penalty. The magistrate said the proceedings showed iho necessity for any public man making himself thoroughly conversant with the provisions of the Act. The cirenmstances showed that the defendant had acted with bona fides, but a member of a local bodv might drift unwittingly into a contravention of the Act. He was satisfied that the case was one which ca'led for only a nominal penalty. He would record a conviction and order the payment of costs only. £16 Is 4d.