GROCERY SUPPLIES

New Zealand Herald, Volume LXXII, Issue 22099, 3 May 1935, Page 12

GROCERY SUPPLIES

{RECIPIENTS OF RELIEF ALLEGED IRREGULARITIES VIEWPOINT OF THE TRADE WIDER INVESTIGATION WANTED . The irregularities alleged to have ..been discovered in the Auckland Hospital Board's contract for the supply of groceries to recipients of relief were discussed at a meeting of grocers in the Lewis Eady Hall last night. Mr. P. Floyd presided over an attendance of about 50. Reports on the whole position were presented verbally by the three members of a deputation which had placed evidence regarding the . allegations before the Relief Committee of the Hospital Board. Mr. Floyd said the Auckland Master Grocers' Association had not taken any active part in the investigations nor was there any political significance attached to the matter. The grocers .-were simply concerned in seeking fair play in the administration of affairs concerning which they had special knowledge. "We did not make our investigations with the idea of attacking the successful tenderer or any member of the Hospital Board," said Mr. P. A. .Barker, » one of the three members of the deputation who appeared originally before the Relief Committee. "The lirm that obtained the contract was 'successful because it tendered the lowest prices. However, we wondered how it could supply goods, in some cases, below landed costs. Our investigations lasted several months and we finally "came to the conclusion that the tender was not being carried out according to the terms of the contract." Details of Allegations 7 Mr. Barker said they placed the •facts regarding the alleged irregularities ■before a meeting of the Relief Committee on March 28 and then waited three weeks without hearing anything further about the matter. Finally the -matter was brought to a head and the full facts were made available to the .Relief Committee at a meeting on .March 29.

Discussing the allegations in more .detail Mr. Barker quoted a number of instances of commodities that had been tendered for at prices subject to market fluctuations. The committee had expressed itself as not satisfied with the extent to which actual fluctuations had :heen reflected in the prices alleged to have been charged. j! "It was admitted to us by responsible • officers of the board that the men .who checked the dockets in the board's office had no iist of prices and no note .of fluctuations which had taken place." Mr. Barker continued. "The board's accountant admitted that for two or three years lines subject to fluctuation had not been checked. These lines represent over 50 per cent of the con'tract and, on the accountant's admission, that means that grocery orders "valued at £40,000 have not been checked. Charge of Laxity v "In the majority of dockets the quantities of goods supplied were not filled iu and the officers and chairman -of the board admit that the dockets have not. been checked in any form -other thfin by additions to see if the [totals were correct." i Mr. Barker said the board had now agreed to asjpoint an independent firm of accountants to investigate the latest complaints. No attack was made on board as a whole or on the chairman, except that it was considered that the Relief Committee had been -lax in not seeing that the contract -had been-observed. ■;<. Mr. L. Munro, another member of the original deputation, advocated a , system whereby all goods to be supplied to recipients cf relief should be nominated and the recipients allowed to patronise the grocer they desired; -and, in addition, an advisory committee should be appointed, consisting of a retailer, a wholesaler and the chairman or another member of the *boaro-, to watch the whole position. " Value for Money "

The third member of the deputation, Mr. A. Oliver, said it wan hoped to arrive at an equitable basis for tendering for Hospital Board contracts. Recipients of relief were entitled to feel that- they wer* getting value for .the money. After further discussion n motion was passed urging the Hospital Board "to allow the Master Grocers Association to appoint an independent accountant to act in conjunction with the firm of accountants appointed bv trie board to investigate the position, it was also decided to urge the hoard to < T rant the privilego of executing relic borders to all members of the grocery trade, as it was believed that would be not only fair to the trade, but also in tho best interests of recipients oi relief and of the board itself. Messrs. P. A. Barker. Munro and Oliver were empowered to appoint an accountant to act for the association with the Hospital Board's approval and also to collect any fresh evidence that, might be available. accountants chosen hospital board decision The appointment of a firm of accountants to carry out an independent investigation' 'into allegations oi irregularities in the contract for the supply of groceries to recipients of relief was made at a special meeting of the Auckland Hospital Board yesterday. Messrs. Macky and Campbell were appointed to carry out the work. In moving that the appointment should be made, the Rev. W. C. Wood said the complaints by the Relief Committee appeared to reveal certain irregularities in the system of checking orders adopted by the board s staff. The inquiry which had been decided on at the board's special meeting on Tuesday should be conducted by a responsible firm of independent accountants and not by officers of the

board. The motion, whifh was seconded by Mr. G. T. Parvin. was then carried.