, 1956-07-28
Preliminary Reporto the Committee on
Fiaonce Of the Virgin Islunds Legislature
Continued from yesterday
I'm q S

FINDINGS
i. Although the Governor Of the Virgin Islands tried to halt
the investigation by issuing Executive Order No. "A. ~forbidding the
testimony of officials and employees and the production of records
before the Committee, the investigation brought to Light several cases
of unlawful expenditures. It is our findings that several thousands
were Withdrawn from the Treasury Of the Virgin Islands and ex-
pended for travel and transportation Of officials their families and
fhoushold furnishings and even the installation Of personal house
hold equipment IN their homes in the United States, without legal
authority.
For example, on March q, 1856, Government Comptroller
Richard 1. Krabachs ruled that it was legal for the Government Of
the Virgin Islands to expend the sum Of 1851 for the installation
of a televsion set in the home Of former Governor Archibald A.
Alexander, It Des MONIES, Iowa. as follows.
~Though said act No. 80 has not specifically defined the meet
ing Of transportation Of Household Furnshiuss' custom. usage and
common practice has well established that Transporting means de-
delivery to residence, unpackng, uncrating and placing in residence,
ready for the domestic use and comfort Of the employee.
Consequently, installation and adjusting Of television, which
lis transported and delivered to and placed insthe residence as part
of the household furnishings Of government enr-lo-ee is a legri-
mate expense, the same as Transporting and placing. in residence Of
appliances properly installed, and other household furnishings"
q The full extsnt Of the Illegal expenditures cannot be deter
mined because the Committee had access to the records Of only a
few departments. The Committee was not able to get any informa-
ton or documents from Mr.. Richard l. Krabach. the Government
|Comptroneh, who. according to information reaching the Committee
~unoffctany, was by far the biggest spender. The Government Comp
troMer refused to give the Committee any information on the ground
that he was not an official Of the Government of the Virgin Islands,
but a Federal officer. He did admit however. that funds from the
Treasury Of the Virgin Islands had been expended for the transporta-
Ition of hi sfanily and household furnishings priorsto the enactment
Of local law granting such authority
In connection with the matter Of the Government Comptroller,
it is interesting to note that Act No. 81 is designed to benefit only
officials and employees of the Government of te, Virgin Islands.
The, Government Comptroller insists that he is not an official Of
the Governmeat Of the Virgin Islands, but a United States officer.
Now then could he legally obtain benefits under a-statute that speci
Ifcaly limits such benefits to officials and employees Of the Gov
eminent of the vrgip Islands? m
3. There is no retroactive provision in Act Mo- 81 The retro
active clause. was purposely left out because there yves streng feel
ing in the Legislature that any official who received $1,000 per
fyear could afford to pay his own transportation expenses to the Is
Hands There was agreement. in the Legislature. however. that there
might be cases involving other employees who would have to be
recruited in the Omitted States and it was for that reason that a ma
ljorhy decided to pass legislation on the subject at al. There was
never any decision to make the law retroactive; consequently no