Broadband guarantee payments under scrutiny
Federal government grants for installing satellite dishes for broadband on remote sites in regional Australia were channelled through the Bill Express group of companies, the Supreme Court of Victoria has been told.Sandro Di Donato's private company TeleCards Asia bought APN (now trading as Activ8Me) with Bill Express funds, said the Bill Express liquidator's counsel Peter Bick in the Supreme Court of Victoria yesterday."No, that's not correct," said Di Donato.The previous owners of APN finally sold their minority stake in 2007 to Di Donato in protest about a $16 million loan to another Di Donato private company TBS, said liquidator's counsel Peter Bick.Di Donato had no knowledge about any accounts or financial records being kept by TBS, despite it employing hundreds of people and sharing bank accounts with Bill Express, a listed company on the Australian Stock exchange, he has maintained in court.TBS was under the financial and administrative control of Bill Express bosses Ian and Hal Christiansen, said Di Donato, who was sole director and sole shareholder.Executive Director of Bill Express Julian Little has previously told the court that Bill Express saw a business opportunity in APN (a small ISP based in Adelaide with about 120 corporate business customers) in about 2004.Little said Bill Express hoped to use APN/Activ8Me's sites to sell Bill Express products and wanted to be involved in the company.Sandro Di Donato denied this because Activ8Me customers are just "retail people surfing the internet," said Di Donato in court yesterday.He did acknowledge a 2007 promotion whereby new Activ8Me customers received a free Bopo pre-paid Visa card from Bill Express worth "about $10 or $15" each.Di Donato and business associate Gordon Tudor have bought struggling smaller rival in the satellite broadband market, Bluemaxx.APN/Activ8Me's license under the broadband guarantee is up for renewal in June.