THE AUDIT DEPARTMENT.

Wairarapa Daily Times, Volume XXIX, Issue 8281, 24 October 1905, Page 6

THE AUDIT DEPARTMENT.

Sitting of the Commission of

Inquiry.

[By Telegraph — Press Association.)

Wellington, Last Night,

After the preliminary portion of the proceedings had been disposed of, the first witness called was Robert Henry Williams, assistant accountant in the Defence Department. Ho described the systems of voucher payments and check employed.

Mr Jellicoe asked if the Department books referred to were available for inspection.

The Commission said he could only inspect a particular entry, not the wholo contents of the books.

Mr Skerrett, for the Department, said there was no objection to the inspection of the whole contents, if the inspection were made under the supervision of the Commission.

Mr Jellicoe: I am thankful for even small crumbs.

Witnoss was being further examined as to whether the books disclosed any payment to Captain Seddon for re-organising defence stores, when Mr Jellicoo interrupted, and said this was secondary evidence. The books should be allowed to speak for thomselves. Ho was there to show that the system of audit was simply a farce, and the door was opened to fraud.

The Court insisted that Mr Jellicoe should confine himself to the logal aspect of his contention, which they eventually ruled against him.

Witness said there was no traco of such payment to Captain Seddon. No such payment could be made without appearing in the books of the Defence Department or those of the Treasury Department.

■By Mr Jellicoe: By arrangement with the Imperial Government post audits were substituted for pre-audits in regard to the payment of Imperial South African monies. Since November, 1903, no records of such payments had been kept in the Defence Department. Asked whether he could say the bank paid a cheque in 1903 purporting to be drawn on a voucher made out in favour of Captain Seddon, for which the voucher was not forthcoming, witness said that the bank had paid several cheques in respect of Imperial supplies.

For which thero is no voucher ? not say that.

—I would

Can you say whether the bank has never paid a cheque" to Captain Seddon in which there is no record in the Defence Department?— No. Of course the bank may have cashed a cheque in favour of Captain Seddon, and no entry would appear in our books. He may have drawn money from the Imperial pay branch.

And no record would appear in your Department's books? —Not in our books. The record would appear in the other Department's books. When witness went to the Treasury Department to inspect the books concerning payments of moneys, he was given the expenditure books for the Colony for 190.V1 and 1901-5. He did not ask to be shown the books regarding payments on account of Imperial pay grants ; certainly not, it was not his business. He only inspected the books which contained entries of the payments made by the Department, and audited by (lie Audit Department.