§ 65. Lieut.-Colonel POWNALLasked the Secretary of State for War whether his attention has been called to recent bankruptcy proceedings at Liverpool, where an ex-officer had given as security for an advance from moneylenders the drafts issued in advance for his pension, which had been discounted at an exorbitant rate, and it transpired that the moneylender had a number of such pensions drafts; and whether his Department will consider the desirability of taking action to prevent such use of pension warrants?
Mr. GUINNESSI have been asked to reply, as the proceedings related to an officer in receipt of retired pay from the Ministry of Pensions through the pay office. The question is being carefully watched, and in cases where special precautions are found to be desirable vouchers are issued monthly instead of yearly. These vouchers are not drafts. They require the addition by the pensioner of a certificate of life at given date. Any person who makes an advance on any such certificate not only has no security whatever for his advance, 935 but is committing an offence under Section 156 (9) of the Army Act. I am having further investigation made as to the possibility of preventing the very undesirable practices referred to by the hon. and gallant Member.
§ Lieut.-Colonel POWNALLWill the right hon. Gentleman consider whether proceedings could not be instituted in the case to which I have called his attention?
Mr. GUINNESSI am not sure in whose hands the prosecution would lie, nor, indeed, whether this particular case would be a suitable one to try, but I will be very glad to look into the matter, and communicate with my hon. and gallant Friend.