SYDNEY GRAFT SCANDAL

Sun (Auckland), Volume II, Issue 356, 17 May 1928, Page 9

SYDNEY GRAFT SCANDAL

POWERHOUSE CONTRACT QUESTION ABOUT £lo,ooo ROYAL COMMISSION INQUIRES (United P.A.—By Telegraph — Copyright) SYDNEY, Wednesday. The Royal Commission which is investigating the affairs of the late Sydney City Council, resumed its sittings to-day. Mr. A. B. Shand appeared as counsel for the Crown solicitor, and Mr. W. A. Holman for the deputygeneral manager of the city electrical department. The commission continued its investigation of the circumstances surrounding the letting of a contract to Babcock and Wilcox, Ltd., of London, for a steam-raising plant for the Sydney powerhouse. At Monday’s sitting evidence was given that Mr. Maling had notified Mr. Arnott, Sydney manager for Babcock and Wilcox, that in consideration for the acceptance of the firm’s tender certain aldermen required £IO,OOO, of which £B,OOO was to go to them and £2,000 to Mr. Maling. A further £ 600 would be required for expenses if the money were sent from London. It was alleged that Mr. Arnott had agreed to this, and that later the money WR. paid into the banking account of Mr. Francis Buckle, who in turn had paid it out in instalments to Mr. Maling through Mr. Albert. Mr. Buckle had acquiesced in the arrangement at the request of Mr. Albert, a money-lender, who had first been approached to allow the payment to be made to his banking account, but who declined, as he was going to Melbourne. FRIENDLY WITH MALING At the outset of to-day’s proceedings Mr. Shand said he had been instructed that money had been deposited in connection with a tender other than that for the powerhouse contract, but had not actually passed. Cross-examined by Mr. Holman, Mr. Albert said no one was ever present when he handed over instalments of the money to Mr. Maling. He never took receipts, but he always gave receipts to Mr. Buckle when he received money to hand to Mr. Maling. He was too friendly with the latter to demand a receipt. He never feared there would be a dispute about the money, as he had always trusted Mr. Maling. He did not at any time suspect there was anything wrong in the transactions. TRUST IN WOMAN CLERK Questioned as to the terms he was on with his clerk, Miss Gordon, since he was prepared to let her handle thousands of pounds of another man’s money, \yitness said he knew her to be a good, honest girl. She was always at liberty to act for* him on his instructions from Melbourne. She had been employed as a housekeeper by other people. He had absolute confidence in her probity.