THE ADVERTISER South Australia's Morning Newspaper

Friday, 3 December 1943 | Page 1

PORT PIRIE SMELTER RECORDS SHOW SHIPPING IRREGULARITIES

Audit Reveals Missing Cargo Worth £50,000

Railway Documentation Under Commonwealth Review

By Charles Thornton, Commercial Editor

PORT PIRIE - Financial irregularities in shipping records at the Port Pirie smelting works have triggered a Commonwealth audit after investigators discovered discrepancies involving approximately £50,000 worth of processed materials over the past quarter.

The investigation, initiated by the Department of Supply following routine accounting reviews, has uncovered what officials describe as "significant documentation failures" in the tracking of materials between Broken Hill mining operations and Port Pirie processing facilities.

Of particular concern are reports of railway wagons arriving at Port Pirie goods yards with manifests indicating full cargo loads, yet containing significantly less material than documented—or in some cases, arriving completely empty despite paperwork showing tonnes of ore.

"We're receiving trains that should be carrying 200 tonnes according to the shipping documents, but the actual weight is perhaps half that," stated a senior yard foreman who spoke on condition of anonymity. "The sealed cars arrive on schedule, but when opened for unloading, they're either partially filled or empty entirely."

WAREHOUSE DISCREPANCIES

Sources within the port authority have identified unusual activity at a warehouse facility in the eastern sector of the Port Pirie industrial district. The building, designated as Warehouse 7 on internal maps, does not appear in official port registry documents or lease agreements.

"There's a storage facility that receives regular nighttime deliveries, but it doesn't exist on any paperwork I can find," explained a port administrative officer. "Trucks arrive after midnight, always with military police escort. The warehouse has been operational for at least eighteen months, yet there's no record of its construction, ownership, or purpose."

Local contractors report being hired for maintenance work at the facility but being required to surrender all documentation upon completion. Payment for such work reportedly comes through intermediary accounts that cannot be traced to any registered business entity.

The South Australian Registry of Deeds and Titles confirms no record of the warehouse structure, despite its clear physical presence and apparent industrial activity. Attempts to inspect the facility have been refused on grounds of "wartime security priorities."

TRANSPORT IRREGULARITIES

Railway scheduling documents obtained by The Advertiser reveal a pattern of "special service" trains operating between Broken Hill and Port Pirie outside normal timetables. These services, running exclusively during night hours, do not appear in public schedules or standard freight manifests.

Mr Geoffrey Hamilton, representing the South Australian Railways Commission, acknowledged the existence of "priority war materials transport" but declined to provide details regarding frequency, cargo, or destination of these services. He stressed that all rail operations are conducted "under full Commonwealth authority and in support of the war effort."

Weighbridge operators at both origin and destination points report being instructed to bypass standard measurement procedures for these special services. Weight recordings, mandatory for all commercial freight, are notably absent from the disputed shipments.

"We're told these are classified military shipments, but they're using civilian railway stock and commercial loading facilities," noted one railways inspector. "In twenty years of service, I've never seen cargo movement with so little documentation."

FINANCIAL IMPLICATIONS

The monetary value of the unaccounted materials, while substantial, may represent only a portion of the actual discrepancy. Insurance underwriters have expressed concern about liability coverage for undocumented cargo, whilst auditors struggle to reconcile books showing materials that cannot be physically located.

The Commonwealth Bank, which provides operational financing for several Port Pirie industrial concerns, has temporarily suspended certain credit facilities pending clarification of the accounting irregularities. This action has raised concerns about potential disruption to legitimate smelting operations critical to war production.

Mr Douglas Whitfield, Senior Auditor with the Commonwealth Department of Supply, stated that investigations are "proceeding with appropriate urgency" but cautioned against speculation that might "undermine confidence in essential war industries." He confirmed that several sets of books are under review but would not specify which companies or facilities are involved.

OFFICIAL RESPONSE

The Port Pirie Chamber of Commerce has called for immediate transparency to protect the reputation of legitimate businesses. However, Commonwealth security regulations have restricted access to shipping records that might clarify the situation.

BHP representatives in Adelaide declined detailed comment, referring all enquiries to their Sydney headquarters. A brief statement acknowledged "temporary administrative challenges" but insisted all company operations remain fully compliant with government requirements.

The South Australian Minister for Industries, Mr Herbert Hudd, assured Parliament that the irregularities pose no threat to war production. However, he offered no explanation for the documented discrepancies or timeline for resolution.

As investigations continue, the Port Pirie smelting complex maintains normal operations. Yet questions persist about the destination of materials that enter the facility on paper but cannot be accounted for in physical inventory or financial records.

- Editorial comment on Page 6: "Transparency in War Production"

[Editor's Note: This edition was recalled by Commonwealth order. Copy retained for archive purposes only.]