TCF to launch own Kumuka investigation

TCF to launch own Kumuka investigation
By admin


The Travel Compensation Fund (TCF) will pore through the financial records of Kumuka after it emerged the adventure operator should have been stripped of its licence more than 12 months before it collapsed, as revealed in yesterday’s Travel Today.

The TCF confirmed it was about to start its own “forensic” examination of paper work amid concerns that an accountancy discrepancy hid the true financial position of Independent Travel Adventures.

TCF legal and policy advisor Garry Dellar told Travel Today it was likely to pursue the directors of the company, accountants and auditors through the courts if any wrongdoing or negligence was detected.

According to Pitcher Partners, the liquidators of Independent Travel Adventures, a $600,000 long term deposit in Kumuka’s bank account should have been excluded from the Annual Financial Returns (AFR) handed to the TCF. It wasn’t.

Partner Anthony Elkerton told Travel Today it should not have had TCF accreditation since at least July 2011.

While the TCF monitor a company’s financial stability each year through the AFRs, it is relying on the accuracy of the company’s own audit.

“We have 3000 AFRs and we can’t audit companies ourselves,” Dellar said. “We are about to start our own full investigation and will get all the files from Pitcher Partners. We bring in our own experts in cases like this and they will forensically go through the accounts.”

Should discrepancies be found, the TCF is likely to take legal action even if the chance of recovering money is remote, he said.

“We don’t always look at the commercial aspects. We like to make the point and that companies can’t just collapse and people walk away,” he said. “We will bankrupt them.”

Even if the TCF is successful in any legal action, travel agents will still be left in the lurch. Any cash recovered will only recoup money paid out by the TCF to consumers.

Retailers will have to make a claim through the liquidator although creditors have been warned not to expect the recovery of any funds.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

Latest News

  • Destinations
  • Tour Operators

Mat McLachlan Battlefield Tours advises final call for Anzac Day 2025

Mat McLachlan Battlefield Tours has advised that the final call for Anzac Day 2025 is on 31 January 2025 with pre-registration also available for Anzac Day 2026. Travellers are encouraged to book their spot for either the 10-day Anzac Day on the Western Front departing on 19 April from Paris or the 8-day Anzac Day […]

  • Destinations
  • Hotels

Two destinations to visit in Mexico for Valentine’s Day

Valentine’s Day is quickly approaching and here are two romantic getaway destinations in Mexico to make any traveller’s day with their special someone even better. Casona Roma Norte, Mexico City This Valentine’s Day is the perfect time to visit Mexico City, as the streets come alive with roses, heartfelt gifts, and the city basks in […]

  • Aviation
  • Luxury

Emirates debuts new uniform for Premium and VIP Passenger Services team

Emirates has debuted a new uniform designed for its Premium & VIP Passengers Services team, who are responsible for the seamless transfer of VIPs through Dubai International Airport. The new uniform has echoes of the iconic Emirates cabin crew look, however, exclusively represents Emirates’ elite unit that caters to high profile customers. A new look […]

  • Appointments
  • News

BEIA appoints Rachel Cook as its new chair

The Business Events Industry Aotearoa (BEIA) Approved Professional Conference Organisers (PCO) Group has appointed Rachel Cook as its new chair. Cook is the business director of Conference Innovators (CI) and since joining CI 20 years ago has been instrumental in the company’s continuing growth and success. She plays a pivotal role in building and supporting […]

  • Hotels

Gaya Island Resort unveils its Wildlife Wonders package

Gaya Island Resort has unveiled its Wildlife Wonders package, a meticulously crafted 4-day, 3-night adventure designed for nature enthusiasts eager to discover the island’s rich biodiversity. The resort is nestled on the tranquil shores of Pulau Gaya, the largest island in Tunku Abdul Rahman Marine Park just off Kota Kinabalu. Its location makes it the […]

  • News

New Caledonia is open and ready for business as Smartraveller downgrades warning

Eight months after the civil unrest, the South Pacific destination of New Caledonia has reopened and is ready to welcome Australian tourists. Smartraveller has recently downgraded its travel advice to the destination following the removal of the nation’s curfew on the 2nd of December. The island is currently rated as amber – ‘exercise a high […]

  • Business Travel
  • Hotels

Atura Wellington unveils newly refurbished rooms in the New Zealand hotel

Atura Wellington, the former Thorndon Hotel by Rydges, has unveiled its newly refurbished rooms in the New Zealand hotel. The rooms were completed following a full refurbishment of all public spaces as part of a broader redevelopment plan. All 108 guest rooms have now been upgraded. The hotel is in the historic Thorndon neighbourhood and […]