NATIVE AFFAIRS.

Waikato Times, Volume 115, Issue 19270, 31 May 1934, Page 17

NATIVE AFFAIRS.

COMMISSION AT GISBORNE. ALLEGATIONS BY AUDITOR. POSITION MOST UNSATISFACTORY. (By Telegraph.—Press Association.) GISBORNE, Wednesday. The Roval Commission investigating the affairs''of the Native Department commenced its Gishorne sittings this morning. The first witness was John White Scott, audit inspector, who in May last audited the .accounts of the office in connection with the Mohaka development scheme regarding stores issues dockets. No receipts were kept, and often records were incomplete. Evfti to-day the record was not up to date, but he thought in the near future it would be righted. The books of account were based on correct accounting principles, and apart from the fact-that work was much in arrears the position was satisfactory. The position regarding vouchers, said witness, was most unsatisfactory. Debit balances representing stock were in excess of 1 stock actually held. He knew that efforts were being made to locate the stores. Witness also considered the system of handling dairy cheques was unsatisfactory. No satisfactory audit had ■yet been carried out in connection with {he Mohaka scheme, but he understood that in about two months a scheme would be ready. Another audit of seed to the value of £474 had been supplied to a station outside the scheme, and witness could find no record of payment, but he had been informed that the seed was supplied under instructions from the Native Minister. The liability was not met till two years after the seed was supplied. Grass seed valued at £769 was supplied to the Ngatiporou Dairy Company for issue to persons outside the scheme, on the Instructions of the Native Minister. No arrangements bad been made for the payment. Records Out of Order. Witness wrote to the Native Minister regarding the cost. The Minister replied that the records were out of order and he could not supply the cost. The dairy company estimated its requirements as for 100 acres, and seed for 700 acres arrived, bought out of development money. Subsequently the Native Minister agreed that five native farmers be granted 10s to 15s an acre towards the cost of ploughing out of the unemployment funds? The farmers signed wages sheets for £336, but the sum never reached the payees. The money had been applied to liquidating the grass seed debt. Some . of the farmers were well-to-do and were not entitled to a subsidy. As far as he knew, no unemployed were engaged. Extensive Frauds Alleged. In connection with the Maori relief In the Waiapu district, ' witness said he found that in 88 contracts extensive frauds had taken place. Signatures would be obtained on blank wage-sheets, and Goldsmith, manager •of the Waiapu Farmers’ Co-operative Company, would later fill in the amounts, In excess of the work done In many oases. The payees were indebted to the company, and Goldsmith would oredit the amount received In the company’s books, In other oases loans being repaid to the Treasury from the unemployment funds. Some £10,690 of these funds passed through the Tlkitiki branch, and £7478 was credited to the aooounts of the payees with the company. The total unemployment moneys which had passed through all branchesof this company was £IB,OOO. Criminal proceedings had been taken against Goldsmith. The Native Minister had been chairman of directors of the Waiapu Farmers’ Company and the Ngatipur.u Company. Two 4 vouchers totalling £7l came under his notice. He discovered that work had been carried out by boys on holiday from Te Aute College and the public school at Rotorua (17 of them). The work was cutting thistles on the main road from Ruatoria, as at the time a visit was expected from the Governor-General. One of the boys was a grandson and the other a son of the Native Minister. It was originally intended that the payments should be charged to the Unemployment Fund. In the end the voucher remained in suspense for 11 months, and was then charged against the Native Purposes Fund. Work Done by Boys. For levelling the site of the Walomatatlni Church, continued witness,

£313 had been charged against the Maori Unemployment Fund, whereas, it was not chargeable. Many of those engaged were boys. The work was done" under instructions from Ihe j Native Minister. None of those who j worked were registered unemployed, j The general idea was that as long as the Maori had paid his dole he was eligible for relief. Posts to the value of £248 had been issued at Tikiliki to ( farmers outside the scheme. Ihe stores issued had not been supported i bv receipts. At Wairoa £563 worth ; of posts had been issued to persons outside the scheme.' To c!alc‘_£9o had been recovered, leaving £4i3 outstanding. His Honour: Any security for that.' Witness: None whatever. Account Refused by Board. Referring to the employment of schoolboys in cutting thistles,, witness stated that Fenn had shown him a letter from tiie Native Minister, an extract from which read as follows: •‘The ‘Unemployment Board turned doW'n £7O odd for boys clearing weeds, etc,, on roads. This is my fault, as I understood that juvenile unemployment was a resposibility of the Unemployment Board. I will fix tins up in another way.” Wide Check of Aooounts. Clement Roy Edwards, stores audit inspector, continuing bis evidence, stated that he had made a report on an examination at Ruatoria. He made a wide check of personal accounts with the Waiapu - Farmers’ Company lo ascertain that unemployment moneys bad been reasonably accounted ffor. Approximately £SOOO of unemployment money had been paid into the Ruatoria branch in the nature of a reimbursement in respect of accounts with the company. Witness said lie came across several irregularities in- the signing of wages vouchers- In every instance the moneys were from the unemployment fund.

Witness said that a football team was training and in order to give them some pocket money they were given work on one of the properties. As the Maoris were not registered as unemployed they had to get two outsiders to sign for them. It was ascertained that these two had never worked on the job. They were actual residents of the district. Witness stated that practically every business man complained of the system of paying out unemployment moneys by which the Waiapu Farmers’ Company had a first call on all moneys. Fenfi, besides being Maori unemployment officer, was manager of the company, and no complaint was made by the Maoris when amounts were deducted from their accounts. Witness said he made inquiries into the use of a Native Department cur which was used by Captain Pitt, native welfare officer at #isbornc. Witness found that of 7300 miles covered. 2800 was for the Native Minister, 500 for conveying families lo the Rotorua scheme, and 1400 for conveying Captain Pitt from the office lo his residence at Patulahi. Only seven gallons of benzine bad been supplied by Captain Pitt for this purpose. Mr H. 11. Carr, Native Land Court Judge, gave evidence giving a summary of the native land development schemes and the work done. He was followed in similar strain by Mr J. IHarvey, Native Land Court Judge.