REDUCING THE DEBIT.

Star (Christchurch), Issue 16833, 8 September 1922, Page 8

REDUCING THE DEBIT.

WAIMAIRI COUNTY COUNCIL’S ACTION. | j nominal penalty I AGAINST MEMBERS. I The action of the WTTimairi Countv j Council in illegally transferring a sui. j of £2OOO out of credit in loan account j t-n reduction of bank overdraft came I before his Honor Air Justice Adams in j rho Supreme Court to-day, when Air i A. T. Donnelly, for the Auditor-Gen- ; oral, asked for a penalty against the ! following members of the council:— AY. i P. Spencer, J. A. J. Uren, O. AY. Her ; vcy. (.. E. Curry, S. A. Staples. C. : E. Cross, J Clolan. and AY. J. AY alter, j Air Donnelly said that there was no I suggestion oi moral culpability. The j County Council had accepted the posi - | tion that the action was illegal, and i the Audit Department was concerned | mainly with a vindication of the prin- ! ciple. It asked for a nominal penaltv | o<‘ £2 against each defendant in re- | spect to only one transaction. I His Honor gave judgment for £2 and costs against each defendant, counsel to settle apportionment of costs. Mr j. J. Donga 11. who appeared for some of the defendants, said that members of the County Council assumed that they were doing no moral wrong. They felt that they would, by reducing the debit in the general account, save the ratepayers’ money, as it would reduce the interest charge. The County Council transferred the sum of £2OOO on October 5, 1920. and a month later the Legislature indicated that the pro- | cedure was legal if the Alinister’s consent was obtained. FI is Honor said that the County Council had not taken the money from the loan account and spent it in the ordinary way of spending. Tt was do sirable, however. that local bodies should realise that they must act strictly in accordance with the law in respect to their funds.