"All computer equipment which is not currently being rented by customers has been sold by Bryan Andrew's Auctioneers," Tubbs said.
Bennett was helping them.
"The director of the company has co-operated in making available the information required by the receivers to compete this report," Tubbs said.
The receivers did reveal how a bad loan had resulted in their involvement.
"We were appointed joint and several receivers and managers of the company under the terms of a general security agreement," they said.
That agreement was struck on January 11, 2005 - a time when South Canterbury Finance was expanding and moving from being a small South Island-focused rural lending business into being an Australasian lender to many sectors, its ultimate undoing.
The Datasouth group offered finance to its IT clients via its main business, Datasouth Finance which borrowed from South Canterbury Finance, the failed business which received a Crown Retail Deposit Guarantee Scheme, forcing the Government to bail out thousands of investors to the tune of $1.7 billion.
Sth Canterbury Finance, in receivership, earlier this year took Bennett to court, asking for an order freezing his assets.
Justice Patricia Courtney ruled for South Canterbury, also asking Bennett to explain how his business operated.
"Mr Bennett is the sole shareholder and director of the Datasouth group of companies. One of those companies, Datasouth Finance has for some years had an arrangement with South Canterbury under which it entered into equipment leases with customers, South Canterbury would purchase assignments of the leases from Datasouth Finance (which) would collect payments from customers and pass them on to South Canterbury Finance.
"Accountants BDO Christchurch, have recently undertaken a limited scope review of Datasouth Finance's receivables at the request of South Canterbury Finance. This step was prompted by advice from the chief executive efficer of the DataSouth group of companies that there appeared to be irregularities in the leases purportedly assigned by DataSouth Finance to South Canterbury.
"BDO Christchurch has reported to South Canterbury Finance that there are material differences between the ledger of receivables maintained by SCF and DSFL's list of active leases, with the number of active leases significantly less than that advised by DFSL to SCF.
"South Canterbury Finance's receivable ledger amounts to $25,711,829. In comparison Datasouth's ledger of assigned leases totals $2,598,825. There are material discrepancies between South Canterbury Finance's receivable ledger and what Datasouth's customers claimed was owed under the leases. Many of Datasouth Finance's customers contacted by BDO Christchurch claimed that they either leased no equipment or less equipment from Datasouth than reported by Datasouth to South Canterbury Finance.
"BDO Christchurch requested an explanation from Mr Bennett for the discrepancies. In an email response he has provided a substantial list that he says 'is a list by deal number, client, origin date, instalment that are not bona fide leases'," the judge said.
DATASOUTH
- Run by Gavin Bennett of Christchurch, Sydney
- Borrowed money from South Canterbury Finance
- SFO laid charges on $103m ponzi fraud
- Court case revealed how the business operated
- Entered into equipment leases with IT clients
- Bennett admitted deals were "not bona fide leases"
- Unwinding the Datasouth business provides surprising evidence
