THAMES VALLEY POWER BOARD.

Hauraki Plains Gazette, Volume XXXIII, Issue 4434, 30 June 1922, Page 2

THAMES VALLEY POWER BOARD.

PROCEEDINGS BY AUDIT DEPARTMENT. INTERESTING CASE. At the Magistrate’s Court, Te Aroha. on Wednesday, before Mr. JH, Salmon, S.M., five separate informations were brought by the AudiDepartment against the Chairman of the Thames Valley Electric Power Board, Mr. F. M. Strange, as being concerned and. interested in certain contracts alleged, to have been made with Willis Bros., Ltd., an incorporated company of Hess than twenty members, pf which he was a shareholder. Mr. Paterson, of Auckland,- for tjhe Audit Department, stated that unfortunately at the time. Mr. Strange was elected chairman of the: Board he was a member of Willis Ltd l ., a small private company, and, therefore, when certain work was done and goods supplied for the Board by Willis Bros., Ltd., Mr. Strange’s office became vacated by virtue pf the provisions of the Electric Power Boards Act, and he became liable to the penalties imposed by the Act. No doubt the position arose more by an error than through a wilful act on Mr. Strange’s part. While it was recognised that Mr. Strange was a good man in the position and had done a lot for the Board the Audit Department was bound to take action to vindicate the attitude it had taken up. Hence thes,e proceedings. A substantial penalty was not asked for. but a sufficient penalty should be imposed to reimburse the Government the expenses the Audit Departmnt had incurred in the matter. Mr. Strange’s position had automatically become vacant under the Act, and he was ineligible for re-election for a period of three years from the date pf the contract. Under the circumstances Mr. Paterson had obtained authority fircm the Department, to withdraw flour of the informations. Mi’. P. Gilchrist, on behalf, of Mr,. Strange, urged that only a nominal penalty (if any) should be imposed. The penalty clauses as applied to power boards were very drastic by comparison, with the Acts dealing with other local bodies. The Municipal Corporations Act had been amended last, year to widen the scope for members pf local bodies who happen, to be directors of private trading concerns. The Counties Act now allowed such, contracts up to £5O per annum. The items now in question were only very slightly in excess of the legal limit, being £5 for one contract, or £lO for the. year. He suggested that the offence was only a trivial one. There was a hardship on Mr. Strange, who was practically the pioneet of electrical development and reticulation of the Thames Valley. He had been selfi-sacrificing in time and labour on behalf qf. the inhabitants of a great area. His disqualification would be a severe loss to the community. The payments to Willis .Bros., Ltd., were for office wiring, purchase of a radiator, some small purchases of benzine, garage pf car, and other items. The whole amounted to £4O. During the like period there had been paid to other local engineers, A. J. Clarke, £256, and D. McL. Wallace, .Ltd., £3275. Such was an indication that the Board was only giving .Willis. 8r05.., Ltd., work and suppli-s when same were not available elsewhei'b. The whole thing was accidental. There was no dishonesty in the matter, and the purchases were in .the best interest of the Board. Mr. Strange’s fjellow members on the PoAVer Board were keeping his Position as chairman open for . him until this case is decided. By Section 95 of the Power Boards /pt any fine imposed would be payable tc the I’uwer Board itself!. Mr. Gilchrist had authority for stating that the Power Board did not wish for and would not accept a penalty. His Worship said the proceedings showed the necessity for any public man making himself thoroughly conversant with the provisions of the Act The circumstances slowed that the defendant had acted: with bona tides, but a member of a local body may drift unwittingly into a contras vention of the Act„ He was satisfied that the case was one which called for only a nominal penalty. He would record a conviction and order the payment of costs onl|y,r £l6 Is 4d.