Bula executives forgo salaries

Executives at Bula Resources have not drawn any salary in recent months, according to sources.

The company, which has 40,000 small shareholders, is currently paying for an office, a receptionist and little else, according to one source. Unaudited accounts for the six months to June 30th, 2002, show the company had cash of €55,000 at that date. "That's not hugely different from what it is today," said a source.

A new chief executive, Viscount Torrington, was appointed to the board of Bula on September 11th last. Mr Tom Kelly is technical director and Mr Omar Yazigi is executive director for north Africa. Mr Con Casey is company secretary. The company has yet to appoint a chairman following the departure of that position by Mr Albert Reynolds on September 9th. It has no public relations representative.

The company's shares were suspended by the stock exchange six months ago because of concerns as to its financial standing. Yesterday was the deadline for a review of the company's position; however, no statement on the company was issued by the exchange.

The options available to the exchange were to allow the shares remain suspended, to delist the company or to wait and see what happens. One source said if Bula did not find some money somewhere soon, the company would dissolve without the exchange having to make any decision.

"If they get the money they are owed from Libya, they are back in business. If not, they're finished," said one source. "In practice, this problem will resolve itself."

It is not clear how much longer the company can survive without a cash injection. The company is trying "as a matter of urgency" to secure completion of a shares issue to two Libya-linked companies, which would realise $1.5 million (€1.52 million). The money has been due for some time.

The company is also owed money by an entity called the Althamer Establishment in Bahrain. Mr Reynolds gave $1.5 million to this entity as a refundable deposit as part of a proposed deal. The deal never went ahead and the money was due for repayment in July. It has not been paid to date despite threats by Bula that it will initiate legal proceedings.

The company has been plagued by difficulties over recent years. It was the subject of an inquiry some years ago into share dealings involving a former chief executive, Mr Jim Stanley. During Mr Reynolds' subsequent period as chairman, which began in March 1999, the company had three managing directors.