NO AUDIT ON RAILWAYS

North Otago Times, Volume CVII, Issue 17748, 9 March 1927, Page 4

NO AUDIT ON RAILWAYS

jPr33D Astiociation.)

*RELIES ON TRUSTED OFFICERS.

CHRISTCHURCH, Yesterday. Iii the Magistrate's Court, James Neilson and Gavid Gordon Watsou, r-ailway clerks of 12 and 14 years' service, were charged with having forged various signatures on the paysheets of the mamtenance hrancli of the Department. It was stated that the shortage amounted to £5364 In the statement Neilson admitted the forgeries, saying that he spent the money on a motor car, gambling and drink. A departmental oflicei' said that there were names on the paysheets of men not employed on the railways. The forgeries had been going on since December 5, 1925. In answer to Mr Sargent, for accused, witness said that the railways had no special audit office. The Magistrate: Your expenditure mns into millions a year; surely you have someone responsihle? Witness: "The Department relies on its trusted officers." "It seems that the sum of £5000 has heen lost through want of an efficierit system of auditing," observedlhe Magistrate. "I know that no system of audit is absolutely proof, but a thing of this sort should not go on." Both accused pleaded not guilty and were committed for trial, ibail being allowed.