IT Capital CEO leaves amid fury over bonus

By PETER GRIFFIN

Troubled tech-investor IT Capital has lost the US-based venture capitalist it brought in to tap into the American market.

The departure of Jeff Dittus, the company's Philadelphia-based chief executive, follows last month's heated shareholder meeting, when IT Capital investors criticised directors for failed investments, the amount they paid themselves and a balance sheet covered in red ink.

Last night, IT Capital's chairman, John Robertson, would not elaborate on why Mr Dittus' contract was not renewed.

But he said the company was on the lookout for a replacement and it made sense "for the new CEO to be based in this part of the world".

That should be some consolation to shareholders who questioned why a South Pacific tech-investor should be run from the US.

The departure of Mr Dittus follows that of IT Capital's managing director, Keith Philips, who left in April.

He later joined Cadmus Technology as a director.

Mr Robertson said two US-based directors remained on the board, maintaining the company's access to US investors.

Whoever takes up the reins at IT Capital will assume the task of tightly managing expenses, which this year were running at up to $400,000 a month.

IT Capital finished the year to March with a $4.6 million write-down in its subsidiary Terabyte Interactive, an Auckland-based web development company. Losses among its other investments left IT Capital $4.9 million in the red.

Whether the departure of Mr Dittus was related to the failure of its $1 million investment in Australian electronic procurement company Streamlink is unclear.

But what grated with shareholders the most was the $1.4 million in bonuses that IT Capital paid its directors during the year, the lion's share of which went to Mr Dittus.

IT Capital shares last night closed at 9c.