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The Waitaki District Council (WDC) cannot account for more than 300 cheques which have gone missing from the Waihemo Service Centre and the council's bank.
WDC corporate services manager Carolyn Carter said the batch of bank deposits, which relate to receipts written between Friday, February 24 and Monday, February 27, contained $942 in cash and 337 cheques - many of which related to rates installments.
She declined to comment on the total worth of the missing cheques and preferred not to disclose the circumstances in which council cheques were sent to Palmerston.
The council has been contacting those directly affected and is working with banks and the police to investigate the matter.
At no time would staff be asking residents for any information of a personal nature, Mrs Carter said.
Instead, residents will be asked to cancel the cheques in question, with the council set to refund any stop-payment fees incurred.
The Bank of New Zealand (BNZ) has offered to waive stop-payment fees for their customers, and anyone with concerns should contact council customer services unit manager Jan Stringer on (03) 433-0300.
Nobody from the Oamaru police was available for comment yesterday, but police would like to hear from anyone with relevant information.