Internet kiosk firm leaves line of angry investors

By RICHARD PAMATATAU

Shopping mall internet kiosk company Zip Internet has been placed in liquidation leaving a string of angry investors and estimated debts of $2 million.

Its activities have also been drawn to the attention of the police.

Detective Sergeant Ian Tuke, of the Fraud Squad, said it had had several complaints relating to a slew of companies - Global Gateway, Global Internet New Zealand (in liquidation), Zip Internet, Global Internet Wellington, Global Gateway Fiji (in liquidation) and Zip Technologies.

Each has James Edwin Potter and the late Kenn John Rangi as directors, according to Companies Office records.

John Whittfield, liquidator at Auckland's McDonald Vague, said it was a very tangled web. He hoped to have a creditors list in five days.

Zip Technologies may also face legal action by shopping mall giant Westfield. The company acted as the agent for the kiosks installed at Westfield malls, which have since been removed.

Andrew Davidson, deputy director of Westfield, said that Zip Technologies failed to pay licence fees due to Westfield last year and as a result Westfield terminated the licence agreement with Zip.

In 2002 Zip Internet director Rangi offered investors the rights to advertising revenue from panels on web access kiosks it was installing in shopping malls around Auckland. Those rights generally cost $39,800 and investors understood they were the sole owners.

Doug Death, an investor, said many of the kiosk owners had since found others had been sold the same kiosk. Seven investors were sold the kiosk at St Lukes.

Death said he was at least $50,000 out of pocket. Doreen May said she was almost $90,000 down because she bought two kiosks.