IOUpay (ASX:IOU) parent company enters voluntary administration

• Fintech IOUpay’s (IOU) parent company, IOUpay Limited, enters voluntary administration due to outstanding debts and suspected fraud
• The company’s CFO is under investigation for allegedly misappropriating up to $7 million in company funds
• Non-bank lender, Finran, offered to bail out IOU, but later withdrew their offer
• PricewaterhouseCoopers Australia has been appointed as voluntary administrators, and will investigate the alleged fraud while IOUpay’s subsidiaries in Malaysia will continue to operate with minimal disruption
• IOU shares have been suspended since March 14, last trading at 4.1 cents

Fintech, IOUpay’s (IOU) parent company, IOUpay Limited, has entered voluntary administration amid outstanding debt and suspected fraud.

It comes after the digital payment services provider last month revealed its Chief Financial Officer, Kenneth Kuan Choon Hsuing, was under investigation for fraud, suspected of allegedly misappropriated up to $7 million in company funds.

IOUpay also said it had a number of “outstanding debts” but had “no reasonable prospect” of paying them back.

Non-bank lender, Finran, had previously offered to bail IOU out. However, shortly after the board accepted the debt funding, Finran pulled out of the deal.

PricewaterhouseCooper Australia has now been appointed as the voluntary administrators of the company, and as part of their job, will investigate the alleged fraud, led by Daniel Walley and Philip Carter.

IOUpay said its subsidiaries in Malaysia will continue to operate as usual, with “minimal business disruption.”

IOU shares have been suspended since March 14, where it last traded at 4.1 cents.