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Clive Mathieson | September 02, 2009
THE Australian Securities & Investments Commission has joined Mark Bouris and his fellow TZ directors in the probe into millions of dollars allegedly missing from the small technology company.
TZ, which is chaired by the Wizard Homes Loans founder, said last night ASIC had informed the company it would investigate "various activities concerning TZ, certain previous directors of TZ and certain associated parties of those previous directors".
"TZ is assisting in those investigations," TZ director Kenneth Ting said.
TZ said it had also issued letters of demand to several past directors of the company "seeking the return of material sums of money". The directors are understood to be former chairman Andrew Sigalla, John Falconer and Michael Otten.
"Each recipient of those demands has denied liability," Mr Ting said. "TZ expects to commence proceedings shortly to seek to recover moneys from some or all of those parties."
ASIC and TZ last week won a temporary freeze on the directors' assets. The matter returns to court tomorrow. TZ also plans to defend a claim launched against it by a previous director.
Since taking control of the board with colleagues including Mr Ting in mid-June, Mr Bouris has commissioned accounting firm Ernst & Young to conduct a forensic examination of TZ's finances.
The report says TZ's cash reserves were $1.12m at March 31 compared with the $7.95m reported to the Australian Securities Exchange. By June 24, it says cash reserves had fallen to about $600,000.
The report also says that $2.41m in interest that was reportedly sent to hedge fund QVT, whose $24m loan to TZ is now in default, was not paid.
"The current board is continuing its investigations as to whom the sum of $2.41m was paid," Mr Ting said.
Confusion also exists over $6.85m in debts supposedly owed to TZ. The company said no documentation could be found to support the debts.
TZ continues to negotiate new terms to repay its loan to QVT and has won an extension to lodge its 2008-09 accounts from ASIC and the ASX. Its shares remain suspended.
TZL Price at posting:
96.0¢ Sentiment: None Disclosure: Not Held
