FIRM PAID OUT TO GET CONTRACT.

Star (Christchurch), Issue 18466, 18 May 1928, Page 10

FIRM PAID OUT TO GET CONTRACT.

MANAGER DISCLOSES GRAFT IN COUNCIL. (United Press Assn.—By Electric Telegraph.—Copyright.) SYDNEY, May 17. Before the Royal Commission inquiring into civic affairs Miss Gordon gave evidence that she was employed as a housekeeper, hut as she was very friendly with Albert she frequently met him and transacted business for him. She also knew Buckle, but never discussed or mentioned Maling’s money to him, and never had any suspicion or curiosity about it. She had two bank accounts of her own, but did not know whether Albert ever opened an account in her name, and did not know if he ever used her account.

Arthur Arnot, attorney and general manager in Australia for Babcock and Wilcox, gave evidence that his firm’s tender for the power house contract was prepared in London and copied in Australia. One day he went to the Town Hall to see if there was any good news, and an alderman told him that it was all right, and that his tender was the lowest. Later, in response to a telephone message, he .went to see Maling, as the tender was complicated and there were questions to answer. Maling, after discussing the tender, said that he wanted £7500 to give his firm the contract, adding: “I am sorry that I've got to do this, but I've'got to find £SOOO for the gang and I want £2500 for myself.” Witness tried to have the amount reduced, but Maling replied: “Those are my instructions. I cannot help it.” Witness neither accepted nor rejected the proposal.. The next thing that happened was that witness got a telephone message from Alderman Holdsworth, who wanted to see him. He went to Holdsworth's place of business, and the latter said that he was prepared to advocate acceptance of the tender by the council if witness gave him £IOOO. Again witness neither accepted nor rejected the proposal, realising, after what Maling had said about the gang, th*at it might be useless to refuse. At another interview, at Maling’s home, Maling said that there had been a meeting of certain aldermen, and it had been decided that, unless witness agreed to pay £IO.OOO, the contract would be let to another firm, the International Combustions, Ltd., which had deposited £15.000 with an independent party, to be paid to the aldermen if they got the contract. After further discussion, witness said: “I see that I must recommend my firm to pay your blackmail,’’ and the interview ended.

Before leaving, he told Maling about Holdsworth’s derriand. Maling said: “Don’t pay him. He is one of the gang find will get his thousand with the others.” A little later he was notified that his firm’s tender was accepted.

Arnot continued that after he was advised that the tender was accepted he had a short interview with Holdsworth. and told Maling, who expressed the opinion that Holdsworth was hunting with the gang and also hunting for himself. Witness informed Maling that he did not wish to have anything to do with the payment, and that if he would nominate somebody in Sydney who would receive the money witness would communicate with his managing director and tell him where to se*nd the money. He was told at a later stage that Frank Buckle would receive the money. Witness said to Maling: “You are running a frightful risk, and will get into trouble over this.” Maling then asked for an additional £6OO to cover expenses, and this was agreed to. In reply to a question by Mr Shand, witness said that, he wrote privately to Sir James Kennall, the firm’s managing director in London, who is since dead, stating in his letter that the tender was a very difficult affair, that witness did not want to have anything to do with it. that he would rather have Sir James come out and witness resign, and that it would be better for the firm not to get the job under existing circumstances. Sir James replied that he could not come out, and if Arnot was satisfied that the firm’s tender was satisfactory in every way and that they were not bribing anyone, to pay any blackmail necessary. Witness wrote again to Sir James telling him that, as he had his authority to pay blackmail,' he had agreed to pay £IO.OOO. and asked him to send it. with an additional £6OO for expenses, to P'rank Buckle, at a certain bank in Sydney.—Australian Press