STATE MINE FUNDS.

Timaru Herald, Volume CXXXIV, Issue 18818, 5 March 1931, Page 8

STATE MINE FUNDS.

CLERK CONVICTED OF EMBEZZLEMENT. By Telegraph—Press Association GREYMOUTH, Maivh 4. Frank Brace, formerly chief clerk ac the State Colleries at Dunollie, was charged at the Supreme Court at Greymouth, that he committed theft of sums totalling £433/15/2, moneys of the New Zealand Government. Accused pleaded not guilty. James Butler, Government Audit Inspector, stated that he conducted an audit in October, 1929, at the mine office, Brace being then chief clerk, trustee and receiver. The books were in order in 1929. On December 3rd last, witness commenced a further audit. On balancing off on December 19th, a shortage was discovered of £l9 10/-. On December 22nd the shortage amounted to £336/14/10. A payment of £7/9/4 would bring the amount of the deficiency to £426/5/10, which amount had since been paid into the public account except for the amount of £7/9/4 in dispute. The system on which the defalcations were conducted was known as “outward holding over,” cheques being shown in the return as drawn on the last day of November, whereas they were not actually drawn until December Ist.

Evidence also given by I. A. James, State Mines Superintendent, Wm. Coumbe, and others of the staff.

The jury returned a verdict of guilty, with a recommendation to leniency, m view of restitution, ill-health, and pre - vious good character. Sentence was deferred till Friday.