Reckless Deals in Millions

Hokitika Guardian, 27 July 1921, Page 4

Reckless Deals in Millions

MUNITIONS WASTE. LONDON, May 31

Colossal Ministry of Munitions loss- j es during the year ending March, 1920 are detailed in a report issued by the Comptroller and Auditor-General, Sir Henry J. Gibson. Every conceivable cause contributed to these losses, including theft, fraud negligence, the cancellation of war contracts, the waste of material by fire and evaporation at dumps and depots, stupid contracts, bad debts, unauthorised “deals” by subordinate officers, and many other matters to which The Daily Mail Has from time to time ('.allied attention.

More than £6.000 was written off as irrecoverable loss clue to theft or fraud during the year and £6B/,000 clue to other causes, including “deficiencies of stocks'.” which the auditor-general was not satisfied were ascertainable was, not satisfied were aSeribable to fraud or theft. Cancellation of contracts accounts for a loss of £1,119.000.

The gross cash expenditure of the Alinistry for the year was £184.995,550 and appropriation sn aid, in other words the proceeds of sales of stocks. £213.137,706.

The greater part of the expenditure is set down as duo to “liquidation of Alinistry production, running expenses of national factories, purchase of stores for other departments,” £165.063,378, and the balance was swallowed up by such items as: Headquarters staff and branches £2,576,30 1 Inspection department ■■■ £2,365,892 Stores department £2,234,711 Completion of housing schemes ••• £871,549 Boring for oil ■••••• £l/9,803 Miscellaneous effective services £6,937,387 “LA RG E DISCRT: PA NCIES.” Correspondence bet ween the '1 reasury and the Alinistry on the subject of the losses is printed in the report. The Treasury regretted to find “very large discrepancies have arisen through other causes than faulty recording oi osili'dinary im*iderice of production.” The explanation was accepted. The Treasury was also politely regretful when it found that a settlement with the War Office involving tin' payment of a lump sum of £13.0(10.000 for stores “had not been

brought to their notice earlier,” and “felt great reluctance in authorising a settlement on terms which possibly abandon the attempt at detailed accounting for deliveries made.” lnit they agreed to let it pass" as a wholly

exceptional measure.” Throughout the report the Treasury makes pained reference to “large sinus outstanding” between the Alinistry

and its contractors. A settlement, has iurt yet been reached in a matter of ir«hal bought by a firm from the Alinis-

try between December IMS ami August 1919. As a result of Treasury test inspection of accounts with Allies "further undercharges of considerable amount” have been discovered in subsidised steel and iron goods, and large additional

debits have been raised. '.t the lin o of the armistice the Afinislrv had “very large contracts” with a company for the supply of motor

chassis, fine thousand and fifty wen' to hi> cancelled oil payment of £139.09" in compensation, and 709 engines were to be given in part payment of Ibis sum. But there were developments in

this complicated transaction winch resulted in the firm obtaining first 700 then 251). and finally 225 engines, and paying compensation for 680 chassis which could not he fitted witli engines. THE WASTERS’ ORGY.

A large number of a Continental type of railway wagons were produced after the war. hut in July 1919 the .Minisl l v decided that no more wagons

should lie sent out of the country, hut

deliveries continued. Some were converted for use on British railways, but

023 wagons of this type, which had rust £250,000, were rejected by the Ministry of transport and are now available for disposal. Attention is drawn to the payment of £137.942 to two firms for the in-

creased cost of manufacturing pig-

lead under a special process. The indicated profits of ono of these firms during the twenty-one months in which the subsidy was paid amounted to £62,679 and the Treasury considered it unfortunate that the subsidy was granted without reference to the rate ol profit- yielded.

An order for 12.000 magnetoes for use in aeroplanes was placed in the I'nited Stales. Certain parts had to he supplied by the Ministry, hut the ATinistry failed to provide them. The contract was cancelled by tlie award ns

compensation of £1,150. in addition to tin" sum of £90.194 paid for the incomplete structures. While flic War Office had informed the Treasury that only four vehicles were not accounted for at the Kompton I’ark motor depot, examinations of

the Ministry lists indicated that a number of vehicles were included twice, and pending further explanation by the Ministry it appeared that the m mher of lorries not accounted for was about 150. Twenty motor ears were repaired on a cost plus profit basis, but a number of tlie ears failed to realise on disposal even the amounts that, had been paid on account for their repair.