NO DISQUALIFICATION

Sun (Auckland), Volume II, Issue 547, 27 December 1928, Page 7

NO DISQUALIFICATION

COUNCILLOR WHO SOLD LAND TO COUNCIL AUDIT DEPARTMENT’S DECISION (From Our Own Correspondent) tjAAIILTON, Wednesday. Owing to the sale of a piece of land owned by Air. C. Lafferty, a member of the Hamilton Borough Council, to the council, Air. Lafferty was disqualified by the Audit Department from holding his seat. The department has now decided to remove the disqualification, and to take no further action. In a letter to the council the Audi-tor-General says: “I have to advise you that the Audit Office is unable to accept the view expressed by the borough solicitors and is of opinion that the essentials of an ordinary contract were present in the transaction in question. The Solicitor-General agrees with this view and has pointed out that an anomalous position would arise if the council could not satisfy the claim by paying a portion of the amount without disqualifying, the claimant as a councillor, but could do so by paying the claim in full.

“He, however, suggests that a ruling of the Supreme Court be obtained, but in view of the facts that it appears that only a fair price was paid lor the land and that the council anted under legal advice and in good faith, I do not propose to incur the cost of obtaining a ruling of the Court and will not take further action in the matter. Under these circumstances, if you will return me a certified balance sheet for March 31. 1928. T shall ho pleased to delete the exception referring to the purchase of the land.”