$5 million charge at heart of Tua split

By PHIL TAYLOR

A $5 million charge by a Vanuatu company registered against David Tua's 51ha sweep of coastal Pakiri land is among transactions at the heart of the boxer's fallout with his managers.

The bust-up has cost him his December fight against World Boxing Association champion Hasim Rahman which, had he won, could have led to a multimillion-dollar payday against Roy Jones.

American boxing promoter Don King said "domestic intranquility" had ended Tua's hopes of fighting Rahman.

"We had problems with his management, and now it appears Tua is having trouble with his management."

Key concerns of Tua's new team, which includes lawyers and an accountant, are the lending of Tuaman group's money in unsecured loans, excessive spending, and overdrawing of salary entitlements by Tuaman managers Martin Pugh and Kevin Barry.

A Herald source says the money involved could total about $1 million.

"Although the Tua companies have quite a lot of assets, because of [the lending and spending] Tua is quite exposed."

Tua's advisers are also understood to be concerned that Pugh is still signing documents on Tua's behalf more than two weeks after the boxer sacked him and Barry.

On Monday, Pugh formed a new company called David Tua Inc Ltd and, as an agent for Tua, signed a shareholder authorisation giving 50 shares in the company to the boxer and 25 each to himself and Barry.

This share split reflects what Pugh has said was the true division of shares of Tuaman Inc. That company records Pugh as sole shareholder. Pugh had said he held shares in trust for the other two.

One of the unsecured loans Pugh paid out of Tuaman coffers is understood to be in favour of Sports Tech Ltd, the Vanuatu company that has listed the $5 million charge on the title of Tua's Pakiri land, north of Auckland, and on Tuaman Inc documents in the Companies Office.

The charge is listed as a mortgage and a debenture.

A charge is put on a property to protect a claimed financial interest.

Tua's group believe Sports Tech, which has not repaid the loan, is a debtor and therefore has no basis to make a charge against Tua's interests.

Pugh has also listed a $5 million charge against the land and the company in Tua's name.

These were listed on the land title 18 months ago, but it is understood Tua did not become aware of them until much later.

There is nothing to indicate money has changed hands because of those charges.

Pugh told the Herald yesterday he had no connection with Sports Tech.

But Companies Office files show Sports Tech is a shareholder with Pugh in Monsta Entertainment, a company Pugh said was involved in entertainment, music and e-commerce and had nothing to do with Tuaman business.

The other shareholder in Monsta is Richard Gregory, who Pugh said owned Sports Tech. A firm of accountants in Port Vila is given on the documents as the address for Gregory and Sports Tech.

A spokesman for the accountancy firm said the company was incorporated under the Vanuatu International Companies Act, which prevented the disclosure of details about the company.

Herald inquiries show Pugh has had a long business association with Gregory, who has been involved in many of Pugh's interests, mostly under the name of Richard Michael Booth.

The Herald has documents in which the same address is given for Gregory and Booth. Passports have been issued in both names, each bearing the same birthdate - October 27, 1965.

Gregory has been a shareholder or director of several companies associated with Pugh, including one listed as owner of a million-dollar Birkenhead property which was Pugh's home and the original address given for Tuaman companies.

A credit service company lists a default notice under Richard Gregory and Richard Booth indicating a car was repossessed from him after payments were missed.

Gregory could not be contacted. A search of electoral rolls covering Greater Auckland did not find him and he was not at the address - an inner-city council flat - listed for him on the Birkenhead property.

Pugh told the Herald he could not remember the reason for the charges on the Pakiri property.

"Oh, I'd have to look through the records to find out what that's for."

Told one was in the name of Sports Tech, Pugh said he would have to look up documents.

The Herald: "You don't remember? You signed the documents to put it [the charges] on. It was only a year ago, $5 million."

Martin Pugh: "Oh, yeah, that's all part of the court case-type thing. I can't really comment on this part. Do you want us to give our game plan away?"

Herald: "Are you associated with Sports Tech?"

Pugh: "Oh, no. Don't be so ridiculous."

Pugh said Gregory was a customer of his who had changed his name from Booth.

Herald: "So what's the real story?"

Pugh: "Hey, just hold back. Kevin doesn't want me talking to you guys because he knows I talk too much. I'm too friendly."

The Pakiri property, bought two years ago for about $7 million, has mortgages and debentures registered against it totalling $19.3 million.

ASB Bank has advanced a mortgage of up to $9.3 million.

The rest is the Sports Tech and Tua charges, for which Pugh signed consents.

Pugh, a former bankrupt, has been involved in the nightclub, e-commerce and food industries and said he planned to move into entertainment and "penis products".

He said he was developing a product to make Viagra work within two minutes, instead of 90 minutes.

Tua and Pugh issued statements yesterday.

Tua said he had withdrawn from the Rahman fight but was looking forward to a championship bout he was confident would be organised by his American promoter, Cedric Kushner.

"I'm in great physical shape and in the process of interviewing some potential trainers to replace my former trainer."

Pugh said he was taking court action against "professionals" he believed had given Tua "incorrect advice".

"We want to make it very clear that we are not going after David, as we respect the past and present association that we share."

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