AUDIT ENQUIRY.

Gisborne Times, Volume XIX, Issue 1592, 24 October 1905, Page 3

AUDIT ENQUIRY.

(Per Press AeßociatiOQ.) Wellington, last night. The Audit Commission resumod its sittings this morning in Chambers. All counsel were present, except Mr Jellicoe, counsel for Mr Fisher, who said he had no application to tnako in Chambers, and therefore had no call to be present. Their Honors decided the order of procedure as follows: The three Government departments—Audit, Treasury, and Defence—to open; Mr Jellicoe to follow for Mr Fisher; Willis, late of Christchurch post office, then to be heard; and Dr Findlay to come next on behalf of Captain Soddon. It was also deoidod to have no opening addresses, but to take evidence at once. The opening proceedings warn enlivened by an encounter betweon Mr Jellicoe and the Bench, After the latter had stated tho order of procedure had been determined on, Mr Jellicoe said he desired to ask what order of reference they were working under, and if the original order had been amended and by whom. Judge Danniston said they were proceeding under the order of referonce read in Court, which ho had already intimated any party to the case was at * liberty to inspect. Mr Jellicoe ondeavored to argno the matter, but the Court refused ' ' ao hear him. Ho then asked to be allowed to make an application iD regard to tho interpretation of tho order of reference. The Court ruled Shat any such application must be mado in writing. Thoy had settled all these matters in Chambers. Mr Jellicoe had beon notified and did not choose to bo I present, and they would not have them argued now. Upon counsel persisting ho was ordered to sit down, and did so.eayiug ho might as wed leave the Court altogether if the Bench declined to hear him. Mr Skerrott was proceeding to call tho first witness, when Mr Jeiliooe asked that all witnesses should be ordered out of Court. After some consultation the Bonch agreed to this. Mr Jellicoe thon asked for reasonable time to enable him to put in writing notice of motion of urgency before Mr Bkerreti proceeded with his examination. This led to another skirmish between the Bench and Bar, which endod in tho Commissioners positively declining to _ acoedo to Mr Jo'liooo'h request and thon * (the first witnos3 was takon. The first witness called at tho audit inP' quiry was Robert Henry Williams, assistant accountant of the Defence Department. He described tho system of voucher r payments and checks employed. Mr Jellicoe asked if the Department s book 3 referred to were available for inspection, , ~ , ~, The Commissioners said Mr Jellicoe could only inspect a certain ontry, not tbo whole of the book’s contents. Mr Skcrrett, for tbo Dopartmont, said •ahere was no objection to inspect the whole of tho contacts if tho inspootioa wus made under tho euporvislon of tho Commission. . ~ , . Mr Jellicoe: I am thankful oven for smell crumbs. Witness was being fortbor examined as to whether the books disclosed uny payment to Captain Seddon for reorganising defence stores, when Mr Jellicoe interwpted, and said this was secondary evi-

Idonoo. Tho books should bo allowod lo Bpoak for thomaoivos. Thoy wore thoro to show tho systom of audit was simply a fatoo, and that tho door was oponod to fraud. Tho Court insisted that Mr Jolliooo should ooufino hicuaolf to tho legal aßpoot of his oontoniiou, and they eventually . rulod against him. I Wituoss said thoro was no traoo of suoh paymont to Captain Soddon. Williams said ho was of opinion that no paymont could bo made without being shown in tho Defonoo Department or Treasury books. Mr Jolliooo oross-oxaminod witness as to Imperial paymonts, and said ho proI posod to show that tbo Dofonoo Minister, as tho rosult of an arrangement mndo with tbo Imporial Government, had power to dispense with any audit in tho ooiouy in respoot of a aortain olass of paymont. The Chairman B»id that witness hai already admitted that an arrnngomon was made for post-audit instead of pro audit.

Witness said ho would " stick up ” an acoouut If ho thought it fraudulent, ovon though it wore ooriifiod to by tho oortifyi log offioor. If Captain Seddon drow a payment from the Imperial authorities, the bank might cash tho oboquo without it appearing on the Now Zealand Defence Dopnrtmont’s books, but it would appear In tho other Departments books. Later. Giving ovidanoo beforo tho Audit Commission to-day R. Williams, asßis)tmt-»eorotary in tho Defence Depart-

ment, said ho oould find no record of a payment of betweon £7O and £BO to Captain Seddon. Ho was satisfied a pay-

ment could not have boon made withou

an entry appearing in tho books of tho Department. It would not be possible for suoh a paymont to bo made without tho vouohor passing through the Defonoo Department.