Frontier Digital Ventures Limited (FDV), a leading owner and operator of online classifieds marketplaces in fast-growing emerging regions, has announced an investigation into the apparent misappropriation of funds within its Colombian business, Fincaraiz. The ASX-listed company revealed that approximately USD330,000, intended for payments to the Colombian taxation authority between January and August 2025, were allegedly transferred out of Fincaraiz accounts without proper authorisation, leading to the freezing of certain bank accounts by the Colombian taxation authority.
In addition to the unpaid tax liability, Frontier Digital Ventures identified roughly USD100,000 in allegedly fraudulent corporate credit card expenses incurred by a small number of Fincaraiz employees from 2023 to 2025. According to the company, these funds appear to have been used for unauthorised personal expenses, resulting in an overstatement of consolidated expenses for the 2023 and 2024 financial years, as well as the first half of 2025. The company plans to address this in its half-year 2025 accounts, with a note disclosing the apparent misappropriation.
FDV has taken immediate action, placing the employees under investigation on compulsory paid leave and implementing stricter payment approval processes. Alternative operating systems and funding arrangements are being established to ensure business continuity. The company intends to fully settle the debt with the Colombian tax authority by August 29, 2025, using existing cash reserves. They anticipate the bank accounts will be unfrozen within 30-45 days of the payment.
To further investigate the matter, Frontier Digital Ventures is appointing a forensic accountant, along with tax and criminal counsel, to conduct a thorough review and identify any additional exposures or risks. The company is also reviewing internal controls and governance processes across its businesses and will implement improvements. The total identified misappropriated funds amount to approximately USD430,000, and the company will provide updates on any material developments. The board of directors authorised the release of this announcement.
