Brief: Ioupay Updates On Its Current Financial Situation

Ovanti

21/03/2023 21:42

March 22 (Reuters) - Ioupay Ltd  IOU.AX :
    * UPDATE ON ITS CURRENT FINANCIAL SITUATION
    * FOLLOWING INVESTIGATION OF CO'S MALAYSIAN OPERATIONS,
THERE ARE
GROUNDS TO SUSPECT THAT FORMER SENIOR EXECUTIVE ENGAGED IN
SIGNIFICANT FRAUD
    * SUSPECTED SIGNIFICANT FRAUD NOW BEING INVESTIGATED BY
MALAYSIAN
POLICE AUTHORITIES
    * MATTER HAS BEEN REPORTED TO MALAYSIAN POLICE AUTHORITIES
    * BOARD HAS STRENGTHENED INTERNAL PROCEDURES AND CONTROLS TO
PREVENT ANY SIMILAR OCCURRENCE IN FUTURE
    * BOARD IS TAKING ALL NECESSARY ACTIONS TO ENSURE THAT THERE
IS
SUFFICIENT CASH TO SUPPORT OPERATION
    * SUSPECTED FRAUD HAS INVOLVED MISAPPROPRIATION OF COMPANY
FUNDS
AND IMMEDIATE ACTIONS ARE UNDER WAY TO RECOVER THESE FUNDS
    * FRAUD INVOLVED ACTIVELY CONCEALING TRUE STATUS OF ABOUT
A$7
MILLION IN CASH THAT WAS PURPORTEDLY HELD BY STAKEHOLDING FIRM
IN MALAYSIA
    * CO HAS TEMPORARILY PAUSED OFFER OF LOANS IN ITS BNPL
BUSINESS
    * BASED ON CURRENT STATUS OF INVESTIGATION, COMPANY'S
ACCOUNTS
WILL HAVE TO BE RESTATED
    * COMMENCED A REDUCTION IN HEADCOUNT IN MALAYSIAN OFFICE
    * IN DISCUSSIONS WITH AUDITORS TO DETERMINE HOW
MISAPPROPRIATION
OF FUNDS REMAINED UNDETECTED, & TO RESTATE ACCOUNTS AS NECESSARY
    * EXPECTED THAT BNPL BUSINESS CAN BE RESTARTED IN LATE MARCH
    * BOARD HELD DISCUSSIONS WITH PARTY INTERESTED IN SUPPORTING
CO,
SUPPORT WOULD INVOLVE LOAN OF ABOUT AUD5 MILLION

Source text for Eikon:  ID:nASX9byRzs 
Further company coverage:  IOU.AX 

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