In another blow to creditors owed money by the company, computers containing accounting data have been removed from DidjiNet's former offices, which have since been sealed off by the landlord at the request of its remaining director, Scott Lunn.
Creditors claim DidjiNet owes them roughly AU$500,000. Lunn conceded he was not wholly across the company's financial position, with former director Fil Starling "aware" of several financial obligations that Lunn was ignorant of.
"There were some financial commitments that affected the company that he was aware of that I was not made aware of," Lunn told ZDNet Australia.
As for the missing financial records, Lunn said computers containing the accounting data were removed from the building without his authorisation. However, Lunn would not say by whom. He further claims the act was caught on the company's surveillance cameras. He now plans on making an official report to the Australian Securities and Investment Commission (ASIC).
"Whilst I was on leave over the Christmas break, without my knowledge, most of the assets of the business were removed from the building," he said. "I reported it to the police, who say it's most likely a civil matter."
Meanwhile, creditors who say they are impacted by the difficulties affecting DidjiNet have hit out at regulatory authorities such as ASIC for not aggressively pursuing their reports. One such creditor, recruitment consultant David Nash, who claims he placed staff into DidjiNet but was never paid, said the regulatory regime in Australia needs to be improved.
"I think it is failing. The reason being is that they say this is common practice," he said. "I think ASIC should be doing more. I think the government should look at its legislation. If this is common practice, it should be stopped.... What's to stop me doing it tomorrow? Racking up AU$500,000 in debts and walking away from it?"
Marketing consultant Samantha Marks, who was employed by Monsoon, a company owned by the Starling family, claims she is still owed money for her services. She is also less than happy with the response she received from ASIC to her queries about DidjiNet.
She claimed that the company "appeared to be operating knowingly without the ability to cover its financial responsibilities in the market," a comment rejected by Lunn.
Lunn said "I think most companies carry debt at some stage...the responsibility of a director is to at all times ensure that in your reasonable judgement the revenue streams that you've got, and your forecast revenue streams will cover any debt that is there, which was my own personal belief.
"It was my belief that with the very healthy revenue streams we projected we wouldn't have any trouble."
Lunn claims he has sought advice from accountants, who told him DidjiNet was not trading while insolvent "given the strength of the sales pipeline".
Facing bankruptcy as a possibility, Lunn has described his investment in DidjiNet as a "big financial backwards", and further claimed he was not in a position to know the true state of the company's day-to-day financial affairs.
"As a member of the board I have ultimate control I guess...but it's becoming clearer that I was not aware of all the financial commitments of the company," he said.
An ASIC spokesperson said the Commission is investigating the reports that it has received from creditors, but would not comment on the investigation except to say it was "progressing".
It is supposedly said that the employees have been paid, which is nothing but one of their usual lies. None of the employees have been paid and unfortunately the employees do not have a contract in the first place apart from a offer letter. Who now will be paying the employees? would they be just left and forgotten? Lets wait and see.