Powerlan and KAZ dismiss ASIC probe

Powerlan and KAZ dismiss ASIC probe

ASX-listed IT companies Powerlan and KAZ Computer Services have both downplayed revelations last week that they were the subject of an ASIC investigation into unusually heavy trading in the two companies' shares.

KAZ issued a statement late last week denying it was subject to any investigation but did assist ASIC earlier this year with an investigation into trading in its shares by companies not connected with KAZ.

Powerlan, on the other hand, confirmed media reports that a search warrant had been executed by the Australian Federal Police and ASIC officers in the company's head office in North Sydney. The raid forms part of an ASIC inquiry into the trading of Powerlan shares during June, also by parties external to the company.

"[The raids] were due to the fact that it was our shares that were allegedly traded," said Theo Baker, MD of Powerlan. "There is no real claim against us, it is simply that the police are looking through our documents to gather evidence on the parties they are pursuing."

Baker said it was now up to ASIC to take the matter further, describing the reports as "hype". "It is simply part of being a listed company," he said.

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