, 1958-11-03

missioner Of Finance shall, upon receipt Of certified voucll-
es from the ndustry-purchaser verify The correctness Of
same -. Underscoring supplied).
Exception No. 2 states that the 9,799 gallons of mo-
lasses referred to by Virgin Islands Corporation Invoice
No. 80, dated March 10, 1857, was delivered during the
month of February 1857.
There is on file in the Department of Finance File
Rum Subsidy Mis- u a voucher certified to by Mr.. G.
W. Skeoch, President, st. Croix Sugar Cane Industries,
Inc, and attached thereto, a statement signed by LauritZ
F. Gibbs, Chief Accountant, Virgin Islands Corporation
Invoice No. $40 was for the period March 81, 1857. Copies
of these documents are attached hereto).
Attention is invited to the fact that payments Of rum
subsidies are made on the certiication of the industry-pur-
chaser or the industry -producer. This places the respon-
sibility for factuality on these persons instead Of on the
Commissioner of Finance, who make the payment only on
their certifcaton. To assure, however. that the quantities
for which payments are made are correct, and as a check
on the Industry purchaser-producer the Commissioner Of
Finance requires that the Industry purchaserprodgcer
file with him certified invoices from the dealer supplying
the molasses, certifying to the quantity supplied, the
amount, and the date thereof. AS the statutes REQUIRE
that payment must be made within three days, this is the
only check that the Department can make if it is to oper-
ate within the statutory provisions. The industry pur-
chaser-produceri is, therefore, a certifying officer under TIE
law as are all other certifying officers of the Government,
and responsibility for the factualty Of statements certified
to by them, rests with them, and not with the Commission
er of Finance.
Section 5, Act Nc. 1877, empowers the Commissioner
OF Finance to request invoices and other pertinent data
frop the industry purchasers-producers as he deems
necessary. Original invoices from the %suppiers are request
ed and received indicating the amount, quantity and de
livery date of the molasses purchased by the industry plr-
chaser-producers as a regular check on the invoices sub
mitted by the industry purchaser-producer. In the instant
case, the payment was made on proper. certifcation sub
stantiated by certified dealers invoices. That an audit
subsequently, disclosed that both the purchaser producer
and the deaIersupplier submitted erroneous information
to which they both certified as correct, and on the basis of
which payment was made, it is our opinion that the ex-
ception should be taken against the industry purchaser
producer as a Certifying Officer, and not against the Com
missioner of Finance, who,is the Discussing Officer. md
who makes payment on the authority of a legally autho-
rized certifying officer.
Your attention is drawn to the fact that even had the
industry-producers complied with Section 6 Cd, Act No.
1877, as amended, and submitted the required quarterly
reports, the over-paymento Of 1898. 81 would not have been
disclosed since the entire quarters transactions are sub
mitted as a summary figure.
On the basis Of the foregoing, and in accordance with