Ann: Operational Update , page-37

As we all know : Commercial Auditors are required to maintain indenpendence from the body being audited.

Once of the things that constitutes a relationship between the auditor and the body being audited is

5 (the auditor) is an employee of:
(a) an officer of the audited body; or
(b) an audit-critical employee of the audited body

Collin Vost is Chairman of JVGlobal.
Patrick O'Neill is Secretary of JVGloabl, therefore Collin's Employee.

Collin is the Chairman of Baraka Energy & Resources
Patrick O'Neill was brought on board as Auditor for 21012-13 Books.

All "loans to other entities" were approved as ASIC compliant by Mr O'Neill in June 30 Financials.

There are also quite a few other factors relating to benefit derived from funds, loans, other benefits or financial relationships that consitutue a relationship and therefore a breach of the independence of auditors requriements.

If you go to Collin's Linked In page, there is no mention of Baraka, or even mining, just that he is great at buying and selling ASX companies, and appraently, at moving money around without telling the people who the money belongs to.

Rob, Hopefully no offence was taken by you, it's just that

Sometimes it's not that hard to show breach in the law and corporations act if they do exist. As above,... Is Patrick an Employee of Collin, YES, at JVGlobal. Is there a relationship between the auditor of Baraka and the Chairman of Baraka, YES, there is, undoubtedly. There is our first answer.

Next question: Where's the money gone ?

Next question: When's it being repaid ?

Last question : If there are no loan contracts and firm and reasonable repayment arrangements in place, when are you resigning from your position ?

[ such a neglect of repayment arrangments and appropriate documentation would easily constitute acting outside the requirement for all Director decisions to be made for the benefit of the company and it's shareholders. Were any of those funds to have ended up at JV Global, that may be a grey area indeed ]

http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s324ch.html

http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s324ce.html