AUDIT ENQUIRY.

Gisborne Times, Volume XIX, Issue 1593, 25 October 1905, Page 2

AUDIT ENQUIRY.

Per Pra*3 Association.

Wellington, last night. Tho Audit Commission resumed Ibis morniDg. Thomas Francis Grey, Acting Undersecretary for Defence, deposed that between 1903 and September 30th, 1904, he was exclusively tho officer who approved and authorised payments on behalf of the Defence Department. No payment for reorganising defence stores had been made during that period. A request to the Commission that the books of the Department should be produced to test the accuracy of witness was refusod. Witness, under oross examination as to whether fraudulent authority for payment might be obtained, said he could not conceive a fraud happening in connection with the public service of the colony. Mr Jelliooe proceeded to refer to recent happenings in New South Wales and to ask questions thereon, but was ruled out of order. Witness, continuing, eaid the five officers commanding districts and the defence storekeeper bad authority to certify to claims. Daring the cross-examination of Grey by Mr Jelliooe, the president of the Commission several times rebuked Mr Jelliooe and accused him'of wasting the time of the Commission. Mr Jelliooe denied that he was wasting time. Judge Denniston, with warmth, said the Commission would have to take strong measures if Mr Jelliooe persisted. Mr Jelliooe said be was not intimidated. Judge Denniston said: ‘‘The language you use is insultiDg to the Court.” Mr Jelliooe : “ No, Your Honor, the language used to me is." The Commission ordered Mr Jelliooe to proceed with his cross-examination.

Grey, further cross-examined by. Mr Jellicoe, said he could not say without reference to the books whether Colonel Porter certified to tho payments to Captain Seddon of Imperial moneys. Dr Findlay (for Captain Seddon) intimated that every voucher and every payment made to Captain Seddon would be produced to the Court, Mr Jellicoe : Oh, that doesn’t satisfy me.

The cross-examination was continued at great length as to the possibilities of evading ordinary oheoks on payment by fraud or otherwise. The M to Z Public Petitions Committee reported on a petition presented praying that a full publio enquiry into the alleged improper payment to Captain R. J. S. Seddon, that as a Royal Commission had been set up the Committee had no recommendation to make.

Mr Taylor said tho Commission would not allow full and unrestricted access to the offioial reoords, and there was therefore no prospect of. proving whether the four Ohristchurob officials were right in their statements or not. These offioials were by the decision of the Audit Commission once more foiled in their efforts to get at the information they requited. The Executive should remove all grounds for the belief that conoealment was desired. He moved to refer the matter back to the Committee.

Mr Seddon reviewed the position at length, urging that the Government had granted all that the petitioners had asked, and declaring that there bad been no alteration of the order of reforenoe of the Audit Commission. Every payment made to Captain Seddon was under enquiry, and nothing could bo wider than that. The people mast realise by now that the enquiry was full and oomplote. Mr Fisher said he had now got to establish for the people of New Zealand the defeots in the audit system, and he did not think it was right with that burden on his shoulders that he should have to pay the expenses of the witnesses he deoided to summon to give evidence before the Audit Commission. After further disoussion the motion to refer the report back to the Committee was lost on the voices, and the report was ordered to lie bn the table.

Later.—Mr Grey said he had made a search in the books of the department, and failed to find any payment to Captain Baddon for reoganising the defeooe stores. He did Dot think a forged vouoher oould be passed through unless all the officers acted iu collusion, and even then it would eventually be deteoted. There were several heated controversies during this witnessed evidence betweon the Benoh and Mr Jellicoe.

Frederick Silva, acting defence storekeeper, eaid there had been no organisation of stores during 1903—1904, No payment was made to Captain Seddon for services in connection with defence stores