DEFALCATIONS AT GISBORNE

Otago Daily Times, Issue 9118, 18 May 1891, Page 6

DEFALCATIONS AT GISBORNE

s Gisbobne, May 6. '• Knmours have been Efloat for some time ( '" serious defalcations in the accounts of the Hai a bour Board. At last night's meeting tt Finance Committee, which was appointed to g '< through the accounts, reported that they ha 8 made investigations which revealed (1) gro: !r irregularities; (2) actual deficiencies, whic '« can be earmarked; (3) items aggregating larg ir sums that can almost with certainty be reporte 8 on as deficient. An examination of the ban 6 pay-in slips revealed that cheques had been r< '" ceived for rates not credited in the cash boo] tf This system had been carried on from 1887 ti P the time of the late treasurer's (Mr Joh is Bourke) death by drowning on April 1. Tt " last actual deficiencies traced amount to £152! ' 8 The amount of rates levied outstanding, aocor( 6 ing to the books, was £3184, and of this £16 ie has during the investigation been traced c '^ apparent deficiencies; bringing the total of th B- alleged defalcations up to £1692. The exsmim 10 tions revealed so many irregularities as to mafc 16 it a matter of great surprise the books coul v. have passed the audit inspectors without leadin *> to such an investigation as would have reveale a the true position of affairs. The board resolve ■ c to obtain legal advice on the matter. Bourfe 13 was also town clerk, and deficiencies of £11 d having been discovered. An investigation of tt lr municipal accounts has been authorised. c" At a meeting of the Harbour Board, to coi " sider the Finance Committee's report, th ;8 chairman (Mr Townley) stated that the amoun] embezzled had been received by cheque, pai 6 into the accounts in lieu of the amounts whic 6 had been received. The bank book and cas '' book agreed, and it was only when they had gc the paying-in slips, and saw the drawback c v large amounts in cash, that they saw whers th n arrears came in. The accounts had bee , a regularly audited, and the system of bool ' 3 keeping had been frequently altered to suit !S fad of the auditor, until the accounts were i '" such a jumble that no one could undei d stand them. The board had depended o 9 the audit system to check the accounts, an c see that overythiug was correct. The resulb, s n revealed by "investigation, had broken dow d every safeguard they thought of. They ha '" been under the impression that a cheque r< 5 ceived would not be broken into until drawn b a a cheque signed by the board. Instead of tha '• the secretary had a loose system of account! '" drew what money Ue lika.l from the bank, an :0 had unlimited cash at his disposal. They ha simply been blamed by the auditors, who wei lf supposed to detect any fault. If the auditc c had done his doty properly he would have see '■ all was wrong. The books on the face of thei •* show errors no auditor should have passed. Th '• feeling of the meeting was that the GovornmeE '■ were liable for the losses sustained. Some c l * the cheques manipulated were large as, for it n stance, one of £128, and two others of £103. 0 0 the amount actually discovered in default £130 0 is rates money, £228 is for sale of cement, & y A large number of cheques were recovere '* through the R. M. Court. The board decide 6 to press for all tho amounts appearing on tl I* books unpaid, in order to ascertain what amount ;8 of the £3180 outstanding was really owing to tb '' board by the ratepayers.

it The output of coal from the Westporfc an '- Greymonth mines for tho month of April was i il follows:—Westport Coal Company, Westpor y 17,148 tons 9owt; Grey Valley Coal Compan; Greymouth, 11,545 tons sowt. n Daring the voyage of the barque Norther nr Chief, from Newcastle to Auckland, a dea a body was sighted floating in the sea whe c the vessel was off Wanganui bluff on the Wei c Coaßt, between Kaipara and Hokianga. Tt n body, which was apparently clad in dark clothe a, was Boon lost sight of, and could not be n y covered. Nothing is known of the identity ( is the drowned man,