SEARCHING INQUIRY.

Star (Christchurch), Volume LXIV, Issue 939, 8 December 1933, Page 3

SEARCHING INQUIRY.

Maori Land Development Schemes. AUDIT DISCLOSURES. (“Star” Parliamentary Reporter.) WELLINGTON'. December S A reply to questions asked in the House by Mr Savage, concerning investigations now proceeding into affairs of the Native Department, was given by the Prime Minister yesterday. The Prime Minister said he could not do better than read a letter he had received on the subject from the AuditorThe letter stated that since the beginning of the work of developing native lands and providing unemployment relief for natives the Audit Office; had met with many difficulties in carrying out the audit of expenditure, owing to want of a proper departmental system and the absence of the necessary records concerning purchase and distribution of livestock, grass seed and other farming requisites. Administrative duties, instead of being centred in responsible departmental officers were, to a large extent, being exercised by the Native Minister, Sir Apirana Ngata. by virtue of the very wide powers vested in him by Parliament. With the object of removing this objection, continued the letter, the Government constituted the Native Land Development Board last session and more recently had made an important alteration in the administrative staff of the Native Department in Wellington, which should lead to better departmental control. It had, however, been ascertained that before the board could be expected to function properly the powers conferred on the Minister should be exercised by the board, instead of the Minister. The writer had been advised that the Government had decided to ask Parliament to amend the Act to make this alteration. Better Control.

"In my opinion,” added the AuditorGeneral, ‘‘these changes will result in better control, more efficient and economical administration, and certainly will afford facilities for more satisfactory audit. One of the most urgent matters connected with administration will be the establishment of a proper stores control system.” Dealing with the question as to whether the present method of investigation by Audit inspectors should proceed, or whether it w'ould be advisable to appoint a Royal Commission or other independent form of inquiry, the Auditor-General stated that this had been carefully considered by Audit and he was of opinion that the present procedure should continue. There were now three Audit inspectors on the East Coast of the North Island, and the writer was prepared to send more if necessary. Audit inspectors had a special training in this class of work and had ample statutory authority to enable them to obtain information concerning public moneys from any persons or bank, or otherwise. The Audit Office did not hesitate to use these powers when necessary, and he was of opinion that with the assistance of the department as now constituted the work of audit would be much facilitated and would suffice. The Audit Office was receiving valuable assistance from the Police Department in identifying natives and translating information supplied. If a Royal Commission were set up it would prove much more costly than the audit system, and if it were required to investigate operations which had been in progress in various parts of the North Island its investigations would prove not only expensive but lengthy. Placed in Hands of Police. "In my annual report to Parliament,” he concluded, “I have referred to the fact that irregularities and falsification of documents has been discovered during the audit of development schemes and of distribution of Maori unemployment funds on the East Coast. This matter has been placed in the hands of the police.” ‘‘lt is a scandal,” said Mr Schramm (Auckland East), when the Prime Minister sat down. A Labour member: Why doesn’t the Native Minister resign?