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A new fraud for Esys ?

Once a major IT distributor in Asia and Europe with a turnover of almost $3 billion, Singapore-based Esys Distribution has been involved in many controversies since 2006. Involved in a fraud with Karma and CHS in the early 2000s, the company’s distribution agreement with Seagate was terminated in 2007 because of its refusal of an audit of its sales. The hard drive vendor then sued Esys for about $130 million on the charges of non payment of arrears and claiming rebates fraudulently.

A year later, Estate Office Chandigarh, an Indian local government body, found Esys India guilty of unethical practices and changing its shareholding pattern against the rules of allotment of 6 acres of land. The land was resumed by local court, which charged promoters of the company for unethical activities and imposed it a heavy fine (source : Hindustan Times 01/30/2008 and 10/14/2008).

In 2008, Esys closed without notice its Australian subsidiary. This embarrassed local resellers, which were thus unable to cover warranty claims for Chimei monitors they purchased from it (source : Computer Reseller News Australia, 02/26/2009).

More recently, the company is being involved in a major financial mess with Bombay-listed Teledata, according to Indian newspaper Financial Chronicle. As usually, Esys owners refuse to answer to journalist questions, which raises more eyebrows and interest. The newspaper has questioned the authenticity of revenue from Esys Singapore subsidiaries for almost $1 billion, as Esys books have not been audited for the last two years. According to the newspaper, another glaring example of fraud in balance sheet is that Teledata is showing revenue from Esys subsidiaries it does not own.

In EMEA region, the company seems to reorganize for future. esysdistribution.com and esysglobal.com websites are offline since end of 2008. This should not help Esys working. And, indeed, the company has chosen to cover Belgian and French sales from Netherlands. Like its Austrian and Italian offices (which are nowhere to be found on official national company listings), its Polish subsidiary was closed in February, while warranty claims on products sold in the country should be sent to a company named Ezy Infotech in the Netherlands. And, purely by chance and a few weeks later, a Polish Ezy Infotech was established. Ezy and Esys are of course officially totally unrelated, according to Esys Germany manager Mark Coplin who declined to answer further to our questions. Even if Ezy Infotech is the property (among other companies such as Tradelabs, Strategybot or Esys Global in Dubai) of Niraj Goel, the brother of Vikas Goel, founder and owner of Esys Distribution. Even better : in the Netherlands, both companies are located in the same city. And in Singapore, Ezy Infotech is run from the premises owned by Esys Singapore. Future will tell if all this was also purely by chance.

Of course, being unrelated, Ezy Infotech should be untouched by Esys frauds. But interestingly enough, Indian Foreign Investment Promotion Board (FIPB) has rejected application of Ezy Infotech for a major investment on the charges that promoters of company are of doubtful credentials and that there are major allegations of frauds against them (source : FIPB).

Edit : follow-up about relations between Seagate, Esys and Ezy here.

Bajtel bets on Palm

Poland : mobility and telephony specialist Bajtel is betting on Palm future success on Pre and has signed an exclusive distribution partnership with the vendor on the country, as well as on Estonia, Latvia and Lithuania. Partnership currently covers Palm Centro and Preo (source : Computer Reseller News Polska).

Securecomm finds a BackupAgent

Netherlands : network and security VAD Securecomm has expanded its services offer with BackupAgent remote backup offer. This partnership also covers Belgium and Luxembourg (source : Computer Reseller News Nederland).

Gigabyte partners Neoteric for motherboards

India : Gigabyte has appointed Neoteric Infomatique as its national distributor for its complete range of motherboards (source : Computer Reseller News India).

A second distributor for Cyberoam

France : beside VAD Eliptec, UTM vendor Cyberoam has decided to expand its local distribution network with Lyons VAD Hermitage.

Tech Data in networking with ZyXEL

Belgium : broadliner Tech Data has expanded its networking offer with ZyXEL products (source : IT Reseller Belgique).

Audema gets Extreme

Spain : network and security VAD Audema Informática has been chosen by Extreme Networks to become its new distributor in the country (source : ChannelPartner España).

Dow returns to Westcoast

United Kingdom : Westcoast is welcoming back Andy Dow to his spiritual home, where he will take up the post of business development director 15 months after leaving the Reading-based distributor to lead Dell UK’s channel revolution. He will be responsible for the integration of vendors including Garmin and BT – following the acquisition of IDS last year – and will also focus on Clarity in Ireland, the distribution business Westcoast bought in the summer of 2006 (source : Microscope United Kingdom).

Level One and EDslan hand in hand

Italy : german networking vendor Level One has chosen cabling and networking EDslan to try to grow its marketshare in the local market (source : Top Trade Informatica Italia).

ID.sys signs with Cipherlab

Germany : POS specialist ID.sys has added Cipherlab POS and AIDC products to its catalog (source : Channel Insider Deutschland).

Recent additions

Our directory is updated daily through information sent by vendors and distributors. Here are the latest updates :
First Step MEA -  United Arab Emirates - VAD
Matts Digital -  France - VAD
Ceesoft Sp. z o.o. -  Poland - VAD
Connex Information Technologies (Pvt) Ltd -  Sri Lanka - VAD
Spectrami Egypt -  Egypt - VAD
Veracomp Hungary Kft. -  Hungary - VAD
Cyber Security South Africa (Pty) Ltd -  South Africa - VAD
Cyber Knight Technologies FZ LLC -  United Arab Emirates - VAD
ILICO Europe s.r.o. -  Czechia - Specialist
BHS Binkert Schweiz GmbH -  Switzerland - Broadliner

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