the auditor should take some blame, page-11

replaces my last post:

Hi PA2000,

That deal with saddington has yet to close. TPID's most recent quarterly update reads:
"As of March 31, 2009 Saddington was still engaged in their final due
diligence and the transaction had not yet closed. The transaction is
expected to close during the fourth quarter of fiscal year
2009."

My guess is that the deal will only close if any cash emerges. I’m guessing that Mackay set up Saddington as a way of protecting any potential money that might flow from this contract from US shareholders of TPID. Basically, if any genuine cash was to start flowing from this deal (which is looking increasingly unlikely), then US shareholders of TPID would have motivation to sue TPID to recover trading losses on the basis of possible misleading statements issued by TPID/Mackay (TPID appears to be your classic pump and dump stock). If this hypothesis is true, Saddington allows Mackay to squirrel away any potential China cash to a tax haven in the BVI.

But the key point here is that, until the Saddington deal closes, TPID still own 70% of NBS's Chinese counterparty. And if the Saddington deal ever does close, then it will be Saddington that owns 70% of NBS's Chinese counterparty. Either way you slice it, it is hard to avoid the conclusion that the majority owner of NBS's Chinese counterparty is not the Chinese govt (as NBS has claimed).