Fletcher firm in cash row

By JAMES GARDINER

An internet company part-owned by businessman Angus Fletcher has failed, despite a bid to pay one of its debts with a cheque written by his wife, the former Auckland mayor.

Tsavo Investments was ordered by the Disputes Tribunal in February to pay $7000 to a company that refurbished Tsavo's Viaduct Basin offices, but has not done so.

Chain Construction (1990) Ltd managing director Dave Fredric said Mr Fletcher reneged on a deal made last November to pay $7000 as final settlement for an invoice of more than $10,000 for the refurbishment.

A few days later, Mr Fletcher, a member of one of New Zealand's best-known business families, wrote to Chain saying the amount was in dispute and blaming his business partner, Susie Fogden, for her "ill-conceived and mismanaged" handling of the office fit-out.

He offered to pay $3500 as final settlement of his liability and said Mr Fredric should pursue Mrs Fogden for the balance.

The cheque enclosed was signed by Christine Fletcher and drawn against her personal account. Mrs Fletcher said this week that the $3500 was part of some money she had advanced to her husband late last year, but Mr Fletcher said it was from "one of our accounts".

Mr Fredric refused to accept Mr Fletcher's new settlement proposal, replying that he was "extremely disappointed that you have not honoured your word". He then went to the tribunal, which ruled in his favour, saying Mrs Fletcher's cheque must be returned but Tsavo must pay Chain Construction $7000 in seven days.

Mrs Fogden and Mr Fletcher were directors and equal shareholders of Tsavo, although Mrs Fogden has since resigned as a director. They are also equal owners of a firm called Ipropos New Zealand. Neither was willing this week to discuss the nature of their business, but Mrs Fletcher and Mr Fredric said they thought it was a "dotcom" company that went under in the wave of collapses internationally a year ago.

Mrs Fogden, who has moved to Queenstown, is owner of another company called Sillycow.com. She said she was puzzled that Mr Fredric had made public details of their private business dealings, which she was would not discuss. She called Mr Fletcher's criticism of her "absolutely ridiculous".

Mr Fletcher said Tsavo had a simultaneous dispute involving a similar sum of money with a company connected with Mr Fredric's and he believed that should have been taken into account.

Mr Fredric said his motivation was simply that Mr Fletcher and Mrs Fogden had not paid what they agreed and Tsavo had not complied with the tribunal order.

He received a faxed letter from Mr Fletcher on Thursday saying it was up to him to make a proposal for settling the dispute.

In May, Mr Fletcher told an Auckland District Court bailiff who tried to collect the $7000 debt that Tsavo was not trading and was in the process of being wound up in the High Court. But in his letter to Mr Fredric this week he said the company had not yet been wound up because it was still trying to "recover monies owing by Susie Fogden".

Mrs Fogden said she owed no money to Tsavo or Mr Fletcher.

He made no offer to Mr Fredric, saying "the onus is on you to make a proposal".

* james_gardiner@nzherald.co.nz