11

I.—7a

that I should be glad if you would call the attention of each Warden to the matter, and point out that to promote an effective audit his responsibility for the abstract being a true abstract of all the licenses issued by him should be acknowledged by his signature at the foot of each sheet." That memorandum was embodied in a circular of the Mines Department issued to Wardens on the 23rd September, 1896. [See Exhibit G.] This was the month I came into office, and this was my first attempt to get the auditing into good order. The circular from the Under-Secretary of the Mines Department to the Warden reads : " I forward herewith for your information copy of a memorandum from the Controller and x~r-General, and have to direct your attention to section 76 of ' The Mining Act, 1891.' ,: The Audit Office has not been in correspondence with the Wardens' Offices at all. The Audit Office submitted a request that a certain course should be adopted by the Mines Department, and the Mines Department adopted it by this circular, and the only Warden who has objected to it is one Warden on the West Coast, Mr. Stratford. The department refers to me the objection of the Warden. It has already been explained that section 76 imposes a statutory duty. The Warden objected to sign, and the objection was referred by the Mines Department to the Audit, and the Audit Office simply said that in this case a separate statement signed by the Warden may be sent in if he cannot see his way to comply with the Audit requirement by signing the statutory abstract which it is his duty to cause to be furnished; that it will be sufficient if he furnishes a separate statement and signs it. What the Audit Office requires is a statement of the person who issues the titles, in order that the accounts of the Receiver may be checked. It will be observed in the printed correspondence that the difficulty was not communicated to the Minister of Mines until nine or ten months afterwards. It was a departmental difficulty. The Audit Office always requires the Administration to give instructions of this character. 83. Can you see any reason why the Warden should not comply with the requisition?—No, Ido not. It appears to me that as every other Warden in the colony has complied with the requisition he might do so. 84. You have said you considered it the duty of the Mines Department to call upon their officers to do anything you requested them to do : is that your opinion ? Have you anything to do with the acts of administration of Ministers or their departments ?—Wherever the acts involve the use of public money, or public revenue, I think I have. What I meant by my remark was that in any case of a requirement of the Audit Office which is not specially provided for by statute or law I should make the requirement on the Administration. I should ask the Administration to give instructions to the officers of the department to comply with the Audit requirement. My memorandum did not call upon the Minister to do it. It says, " I should be glad if you would call the attention of each Warden to the matter, and point out that to promote an effective audit his responsibility for the abstract being a true abstract of all the licenses issued by him should be acknowledged by his signature at the foot of each sheet." 85. In this case you say you did not request the Minister of Mines to give an order to Mr. Stratford to sign these abstracts : do you say that ?—The only thing I said was that a special instruction in the matter would be necessary. 86. Did you not ask the Minister of Mines to give that instruction?—l had better read the paper: "29th January, 1897. —A special departmental instruction appears to be necessary to Mr. Stratford that he should sign the abstract. It would obviously be absurd to regard as of any value for the purpose of checking a Receiver's accounts an abstract prepared by such Receiver but not certified as correct by the Warden." That leaves it to the Minister's discretion. 87. Yes; but the Minister refused ? —He did not know anything about it until about nine months after, I think. 88. The Chairman.'] This went on with you and the Under-Secretary without the Minister knowing anything about it ? —Yes, I think so. 89. Bight Hon. B. J. Seddon.] Are you sure the Minister knew nothing about it ?—He states so in his letter. 90. Where P —ln his letter of the Ist November, 1897, Hon. A. J. Cadman to the Controller and Auditor-General: " Under these circumstances I consider it unwise to interfere further, but had the matter come to me in the first instance I should probably have asked the Warden to do what you desired without raising the legal aspect of the case." 91. Turn to page 13 of 8.-20, Sess. 11., 1897, and you will see these words at the foot of the page : "I regret the Audit Office should have so little respect for public convenience as to refuse to continue a practice that has gone on for years without a single case of loss occurring. This is a piece of red-tapeism, nothing more or less. Under what authority has the Audit Office given instructions to Treasury officers? I consider the action taken unwarranted and discourteous, and one which is bound to cause complications.—R.J.S. —30/12/96." This has been a matter in dispute between the Treasury Office as well as the others ?—That is a quotation from a paper in relation to the conduct generally of some of the Receivers of the colony. It refers to the irregularity of paying without orders mining deposits to solicitors and mining agents. 92. Was not this put by you amongst the papers submitted by you to Parliament ?—No. 93. It says here, on the first page, " Laid on the table by the Hon. the Speaker." Did you not put this before the House ? —I put this before the House because it comes in in a letter to the Treasury on the subject of the exception. 94. In the same letter this occurs : " The ' Mines Department' and ' one of the departments of the State ' are in the present case expressions meaning ' the Government.' The three expressions are synonymous. The requisition of the Audit Office upon the Mines Department is a requisition upon that department of the State for the administration of which the responsibility lies with the Minister of Mines, whose acts are the acts of the Government, which includes the Colonial Treasurer ; and, consequently, ' the failure of the Mines Department' is the failure of the Government, and ' the