HC Deb 14 November 1949 vol 469 cc1669-70
30. Mr. W. Fletcher

asked the Minister of Food to what extent the internal audit department of his Department was responsible for the accuracy of the accounts of the United Africa Company, when that company was acting as managing agents for the East African groundnuts scheme.

Mr. Strachey

The internal audit division of the Ministry of Food had no responsibility for the preparation or accuracy of these accounts: this was the duty of the managing agents themselves. The division was responsible only for the audit of the accounts.

Mr. Fletcher

In view of the fact that the right hon. Gentleman appointed these people as his agents, does not the responsibility still rest on him to see that the audit department ensure that proper accounting is being carried out by the agents?

Mr. Strachey

It is perfectly true that I bear the responsibility for appointing this firm as managing agents and I am willing to acknowledge that responsibility; but the responsibility of the internal audit division of my Ministry was to audit the accounts and make a report on them to the Comptroller and Auditor General, both of which responsibilities have been discharged.

Mr. Godfrey Nicholson

Is the right hon. Gentleman aware of the very grave shock to public opinion caused by the comments of the auditors, and how dare he brush that off so lightly?

Mr. Strachey

I am not brushing off anything.

Mr. Turton

Was this internal audit continued when the Overseas Food Corporation took over?

Mr. Strachey

No, Sir, A firm of auditors, Messrs, Cooper Brothers, were then appointed.