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Former Nu-Tec secretary speaks out

Former Nu-Tec secretary speaks out

Reporter: Emma Alberici

KERRY O'BRIEN: Last night we brought you the story of Nu-Tec, the high-tech scheme promoted by
Gregory Symons using one of Australia's most prominent scientists as the bait to reel in the
investors. Gregory Symons acquired notoriety back in 1992 in the Marshall Islands where he was
jailed for forging government documents related to a migration scheme. Fast forward 13 years and Mr
Symons is spinning tales again using big accounting firms and a scientist's reputation to give him
credibility. Over four and a half year he managed to accumulate $3 million for his venture.

Tonight, Nu-Tec's former company secretary speaks out about Mr Symons's spending spree of
investors' money and his frustrations with the lack of will to validate Professor Kemeny's
ground-breaking technologies.

So why did the corporate regulator fail to act on concerns about Nu-Tec first raised with them
nearly two years ago? Investors went to ASIC in 2002 complaining and Gregory Symons, a former
bankrupt who has been involved with no fewer than nine failed business ventures. Finance editor
Emma Alberici.

ROGER SMITH, FORMER NU-TEC COMPANY SECRETARY : Symons ran this very much as his own little empire.
He and Noel Dennis had a controlling interest in the business. Gregory Symons had a team of people
around him But he played one off against the other and ran the whole show himself. Then it all went
pear-shaped and Symons reverted to his usual modus operandi, which is to make the best out of it
for himself.

EMMA ALBERICI: How does a company that owns nothing and makes nothing attract $3 million worth of
investment and convince international accounting firms to come up with multimillion-dollar
valuations? It's the question Roger Smith can answer as he takes us inside Nu-Tec. As the company
secretary he works side by side with Gregory Symons travelling the world until, in his words, it
all went pear-shaped. The beginning of the end came in 2002 when Roger Smith and the executive team
were due to travel to Malaysia to develop the sales lead.

ROGER SMITH: We could only get economy class seats, which was fine with everybody except Symons and
his companion. So, Professor Kemeny, two of the consultants and myself, went to Kuala Lumpur.
Gregory Symons didn't come because he couldn't get his business class or first-class seat on a the
plane so he and his companion went off to Coolum for the weekend.

EMMA ALBERICI: Instead?

ROGER SMITH: Instead.

EMMA ALBERICI: On the company account?

ROGER SMITH: Yeah, although he would say, of course, that that's - he's entitled to his personal
drawings out of company funds.

EMMA ALBERICI: According to the company line Nu-Tec was a serious player with ground-breaking
nuclear applications. Noted nuclear physicist Leslie Kemeny was on the becomes, the company's ace.
The truth, however, was that Nu-Tec was no tech. Its technology didn't exist. Just a few
underdeveloped ideas rattling around Professor Kemeny's mind. Some rudimentary paper work and a
sales pitch aimed at novice investors. People like Rod Owens.

ROD OWENS, NU-TEC INVESTOR: It looked pretty well like a win-win situation.

EMMA ALBERICI: And Robert Dabbs.

ROBERT DABBS NU-TEC INVESTOR: It sounded pretty good so we thought we'd chase it up.

EMMA ALBERICI: And Graham Thomas.

GRAHAM THOMAS, NU-TEC INVESTOR: This will be bigger than Microsoft, they said.

EMMA ALBERICI: And even corporate heavyweights, businesses in the business of knowing their
numbers, accounting firms, Deloittes and PKF, who gave them gold, incredible profit forecasts and
growth in the hundreds of millions. Now, PKF said in the first year the company would make $US5
million in income and in the second year it would make $100 million in income. These were 2002,
2003. You must have known that was unachievable? You had no prototype and you had no contract
signed with anyone.

ROGER SMITH: Absolutely, yeah. I had nothing to do with the preparation of those documents.

ANONYMOUS REPORTER: Mr Symons, did you forge any government documents?

EMMA ALBERICI: And this is the man with the dubious plan, Gregory Symons. As we told you last
night, the central figure 13 years ago in a migration scam that came to be known as the Marshall
Islands Affair. It damaged Labor heavyweight Graham Richardson. This latest venture, Nu-Tec, is
Symons's ninth failed business since the '70s. It has sucked in mums and dads to the tune of $3
million. All of them have kissed their money goodbye. Retiree Graham Thomas swallowed the line his
money would multiply 90-fold when Nu-Tec would look to list on a foreign exchange.

GRAHAM THOMAS: It built up to about $100,000 in the end and at one stage I said, "Look, I don't
want to put any more money in. You better get somebody else" because they were asking for $200,000
at that stage.

EMMA ALBERICI: Graham Thomas, like all of the other investors, was impressed what looks like
re-endorsements from Deloittes and PKF about the earning power for Nu-Tec. For this investor it
wasn't simply a case of buying this story, but paying for it as well. PKF's $50,000 fee. Why did
you do that?

GRAHAM THOMAS: Why did I do that? When I look back on it I was very foolish, wasn't I?

EMMA ALBERICI: Doubly foolish for hooking up with this man, Noel Dennis, co-guarantor on the
$50,000 bank loan. Noel Dennis was on the Nu-Tec payroll as its legal adviser, though he hasn't
practised as a lawyer since he was struck off in 1981 for misusing money on a trust account. He has
been readmitted but doesn't hold a practising certificate. Graham Thomas used his money from his
property in Berry as security on the Nu-Tec loan. He was going to retire here but the bank has
called in the loan Nu-Tec can't pay and Noel Dennis says he has no money so Graham Thomas risks
losing his property.

GRAHAM THOMAS: I would have expected PKF to do a diligence check on the company to see that
everything was above board before they done anything. Obviously, they haven't done that.

EMMA ALBERICI: Companies like Deloittes and PKF, surely they have a responsibility to do some due
diligence. Did they talk to you?

PROFESSOR LESLIE KEMENY, NUCLEAR SCIENTIST: No, they didn't talk to me about science and
technology. I would have been present at possibly one or two meetings with them.

EMMA ALBERICI: Sorry to hammer the point, but you did meet with Deloittes and PKF?

LESLIE KEMENY: Yes, I would have met with both of those teams and I'm not familiar with how they do
their due diligence or assessment. Australia has the world's largest uranium resource...

EMMA ALBERICI: Professor Leslie Kemeny has been involved in the area of nuclear science for 30
years. That's how long he's been trying to get his technologies commercialised. So far none of his
theories have left the drawing board. Did you ever say to Deloittes or to PKF, "I'm not happy with
this unless the prototype is done"?

LESLIE KEMENY: I would have said that. I would have warned about making any projections.

EMMA ALBERICI: You did warn?

LESLIE KEMENY: Yes.

EMMA ALBERICI: You warned Deloittes?

LESLIE KEMENY: Yes, yes.

EMMA ALBERICI: Not PKF?

LESLIE KEMENY: They were the two big...

EMMA ALBERICI: So you warned both of them?

LESLIE KEMENY: That's right, yes, yes.

EMMA ALBERICI: Alarm bells should also have been ringing at Australia's corporate regulator after
shareholders approached ASIC with some serious concerns about Nu-Tec two and a half years ago. More
investors have complained to ASIC since then, but still no action has been taken. Gregory Symons
raised money from 112 Australians without a prospectus, telling them he didn't need one because his
company was registered in the US.

ROD OWENS: I was basically told, "Leave it all with us and we'll get back to you." Six weeks or so
later they did get back to me and they informed me, really, there was nothing - there was nothing,
really, there they could do. ASIC really wasn't interested in the small fry like that.

GRAHAM THOMAS: They just didn't give us an answer. They said, "No, we are not interested in doing
anything."

EMMA ALBERICI: But it didn't end there. The '7.30 Report' has obtained a letter from ASIC to
Gregory Symons written as recently as November last year. It asks him to justify raising money in
Australia without a prospectus and warns him it's against the law to do so, particularly if a
company is not registered in Australia. The letter demands a list of answers from Symons, but
astonishingly he never provided those answers and we understand ASIC never followed it up.

EMMA ALBERICI: How did you feel about that?

GRAHAM THOMAS: Pretty let down,actually.

EMMA ALBERICI: Over three years investors received newsletters from Nu-Tec telling them management
had secured supply contracts and sharing agreements with multinational companies. The fiction was
written by Ken Hooper. Nu-Tec paid him more than $60,000 in one year to talk up the company's
prospects. Ken Hooper is himself no stranger to controversy. In 1999 he was secretly paid by
Westfield to set up bogus action groups, to lobby against a rival development. Westfield chairman
Frank Lowy was forced to apologise for the so-called Ken Hooper affair.

ROBERT DABBS, NU-TEC INVESTOR: We spoke to Ken Hooper for a while and then I think we were taken
into Symons's office and they just explained to us, told us that they didn't really want outside
investors; that they were trying to keep this thing in-house, et cetera, and they actually said,
you know, they would think about taking our investment, et cetera, et cetera, go away and think
about it. So we actually went away and thought about it and decided to go ahead.

EMMA ALBERICI: They were giving you the impression that it was very special and very exclusive club
of investors.

ROBERT DABBS: Exactly, yes. It was the reverse psychology that we got sucked into.

ROGER SMITH: I hung around because I said to Kemeny as long as Symons was in the seat, in the
driving seat, we would have trouble raising money, sufficient money to validate fully the
technologies.

EMMA ALBERICI: When Professor Leslie Kemeny broke his contract with Nu-Tec seven months ago, Roger
Smith followed him out the door, but the former Nu-Tec company secretary can hardly distance
himself from Gregory Symons's extravagance. Now we've seen a travel document we'd like you to
explain to us. It's from the end of 2001 and it shows that yourself, Gregory Symons, his girlfriend
Caroline Miller and her daughter went on a cruise around Florida.

ROGER SMITH: Yes, we weren't able to make the appointments we needed to make and there was a
special on a five-day cruise and it was suggested that it would be a good idea if we did that
rather than stay in DC, which was quite expensive.

EMMA ALBERICI: $600 US a night for a cabin and $1,800 a night for Greg and Caroline hardly seems
good value.

ROGER SMITH: I wasn't aware that was - I was told that it was much cheaper than the accommodation
we had in DC, which was about $150 a night.

EMMA ALBERICI: I've actually seen a receipt from the travel agent. Have you? It was a $30,000
cruise.

ROGER SMITH: Good heavens? That really does surprise me.

EMMA ALBERICI: Before you fly around the world first-class trying to find the people to buy the
technology, shouldn't you have proved it works?

ROGER SMITH: I think Symons was looking for a bigger market. He was looking towards this idea of an
IPO in North America somewhere and he felt that I think the phrase he used was "he could sell the
sizzle".

EMMA ALBERICI: None of the institutional investors fell for Gregory Symons's sizzle so the only
people burnt were Nu-Tec's small shareholders. The Australian Securities and Investment Commission
have requested copy of our material.

KERRY O'BRIEN: Which they will get. A sad, sad story in the meantime for the investors. Apart from
a brief statement from Deloittes which we reported last night neither of the two big accounting
firms mentioned in the story would be interviewed for the '7.30 Report'. Gregory Symons remains
uncontactable overseas.

Schiavo's fate still hangs in balance

Schiavo's fate still hangs in balance

Reporter: Jill Colgan

KERRY O'BRIEN: To the US now and the life and death drama over severely brain-damaged Terri
Schiavo. For seven years, her husband and parents have fought through the courts and finally
through the Congress and even the White House, over whether she should live or die. After a
two-hour hearing in the Federal Court today early our time, once again Terri Schiavo's fate was
still in the balance. She's been bedridden unable even to feed herself for 15 years. And after the
most recent court ruling, has been without her feeding tube since Friday. At the heart of this
case, the bitterly emotional debate over right to life with far wider ramifications than this one
tragedy. Jill Colgan reports from Washington.

JILL COLGAN: Congress should have been quiet, after all it's the March recess. Instead, in an
extraordinary move, 261 members of Congress flew back into Washington on a late-night mission to
help pass legislation aimed at just one woman.

THE SPEAKER: The bill is passed.

JILL COLGAN: This woman. Now 41 years of age, Terri Schiavo has been severely disabled since 1990
when a heart attack starved her brain of oxygen. Her parents and siblings have fought to keep her
alive, insisting these videos show she's not brain dead. But her husband, Michael, says her doctors
have confirmed she's in a permanent vegetative state.

MICHAEL SCHIAVO, HUSBAND: Terri does not receive pain. The cortex in her brain is gone. She cannot
perceive pain. She doesn't feel. She doesn't think.

JILL COLGAN: Michael Schiavo has been cast as the villain in this piece. For the last seven years,
he has fought his wife's family to remove Terri's feeding tube and let her die.

MICHAEL SCHIAVO: There has been multitudes of doctors that have seen Terri in the last 15 years.
There had to be at least over 100-150 doctors that have seen her and nobody has ever come back and
said that she's not in a persistent vegetative state.

JILL COLGAN: The couple met at college, married in 1984 and had six happy years together.

MICHAEL SCHIAVO: She had this persona, this aura about her that just attracted you. The beautiful
smile. I mean, shy and outgoing at the same time. She loved kids. We wanted to have a house full,
just to have a happy, little normal life. We weren't into the glimmer and the shine. We just wanted
a nice little comfortable life together.

JILL COLGAN: But an eating disorder is suspected of prompting the heart attack that led to her
severe brain injury. Michael Schiavo claims his wife had told him she didn't want to be kept alive
if ever she fell into that condition. Just last Friday he won his court battle to let her die. A
Florida judge ordered her feeding tube removed and without sustenance she has just days to live.
But this fight is larger than Terri Schiavo.

MAN: I am outraged. I am angry. An innocent person cannot be starved to death in this country.

JILL COLGAN: It pits those who believe in the right to life against those who believe in the right
to die.

ASSOCIATE PROFESSOR STEPHEN WERMIEL, LAW & GOVERNMENT, AMERICAN UNIVERSITY: The conservative kind
of fundamentalist movement in this country believes very strongly in a broad definition of life and
they really believe this is murder. They really believe that she is a living being, breathing on
her own and that the Florida courts are going to allow her to be starved to death.

JILL COLGAN: Her case has taken on a life of its own. Protesters were arrested as they tried to
break into her hospice to give her water.

PROTESTER: We are going through such a trial here, Lord God.

JILL COLGAN: It's a deeply personal fight for her family, but for Right to Life activists, it's
also a chance to move one step closer to protecting all stages of life, including protection for an
unborn foetus from abortion. Cutting short a vacation in Texas, America's conservative Christian
President flew into Washington to sign the newly passed legislation into law. It overrides the
Florida state court, giving Terri Schiavo's parents the right to take the case to a Federal Court,
breathing new life into their legal struggle.

GEORGE W. BUSH, US PRESIDENT: Democrats and Republicans and Congress came together last night to
give Terri Schiavo's parents another opportunity to save their daughter's life. This is a complex
case with serious issues, but in extraordinary circumstances like this, it is wise to always err on
the side of life.

JILL COLGAN: For Terri Schiavo's family, it's been an enormous relief.

SUZANNE VITADAMO, SISTER: We are very, very, very thankful to have crossed this bridge and we're
very hopeful, very hopeful that the Federal courts will follow the will of Congress and save my
sister's life.

MICHAEL SCHIAVO: We went through the court systems for seven years. There's no doubts here. Twenty
judges have heard this. The United States Supreme Court has heard this. There's no doubts here and
Mr Bush should be ashamed of himself.

JILL COLGAN: For Michael Schiavo it's a bitter defeat that carries implications well beyond his own
situation.

MICHAEL SCHIAVO: This is a sad day for Terri, but I tell you what it's also a sad day for every
person in this country because the US Government is going to come in and trample all over your
personal, family matters and they don't care.

ASSOCIATE PROFESSOR STEPHEN WERMIEL: Out of nowhere a decision that is a deeply personal decision
that the law commits to the next of kin, a family member, the husband in this case, that suddenly
that decision will be kind of intruded upon by the full weight of the government of the state of
Florida and the government of the entire US is a scary thing.

JILL COLGAN: Critics say Congress has overstepped the mark; that this was a decision for the
Florida courts and for Terri Schiavo's doctors. There are fears that changing the law because
Congress didn't like the outcome in court, could undermine the judicial system and set a dangerous
precedent for law-makers.

CHRIS SHAYS, REPUBLICAN, CONNECTICUT: How deep is this Congress going to reach? How deep is this
Congress going to reach into the personal lives of each and every one of us?

TRENT FRANKS, REPUBLICAN, ARIZONA: Protecting the lives of our innocent citizens and their
constitutional rights is why we are all here.

JILL COLGAN: Michael Schiavo now has another woman in his life and two children, but he refuses to
divorce Terri and remove himself as next of kin.

MICHAEL SCHIAVO: I made a promise to Terri. I love my wife and Terri is not an inanimate object,
she's not a piece of furniture you pass back and forth. Terri is my family also and I'll be by her
side every step of the way.

JILL COLGAN: Both sides of her family say they want the best for Terri Schiavo, but without a
living will, a testament to her wishes, she's helpless to influence the outcome of her own fate.

KERRY O'BRIEN: It's not immediately clear when the Federal District Court will now make its ruling.
Jill Colgan with that report from Washington.

Inventor cracks used tyre problem

Inventor cracks used tyre problem

Reporter: Genevieve Hussey

KERRY O'BRIEN: Every year more than one billion tyres are thrown away around the world, many of
them ending up in massive dumps. It's a major environmental challenge because the cost of recycling
the tyres is often far greater than the value of the rubber that's extracted. For the past 30 years
Queensland inventor John Dobozy has been obsessed with finding an economical way to recycle all the
raw materials that go into making a tyre. Now he believes he's found the answer and has begun
selling his process worldwide. Genevieve Hussey reports.

GENEVIEVE HUSSEY: It's amazing what people will do with a used car tyre. For years, would-be
sculptors across the country have used them to create the iconic front yard decoration; the car
tyre swan. But inventor John Dobyze has a more outlandish idea. He spent years cooking tyres in the
microwave. How many of these have you wrecked?

JOHN DOBYZE: I've blown up dozens of microwaves in the past five years, but we have a good system
now to recycle rubber.

GENEVIEVE HUSSEY: This has come a long way from the home microwave.

JOHN DOBYZE: This is the first purpose-built microwave that heats up the rubber to 30 degrees,
totally de-volitise the rubber taking out the hydrocarbons which turn into oil, and the residue is
activated carbon.

GENEVIEVE HUSSEY: This former furniture making, painter and restaurant maitre d is a man with a
passion. He's spent decades searching for the perfect way to recycle used tyres.

JOHN DOBYZE: I never give up on anything.

GENEVIEVE HUSSEY: Is it an obsession, is it?

JOHN DOBYZE: Yes, it became an obsession, yes.

GENEVIEVE HUSSEY: John Dobyze's obsession has been fuelled by the fact that worldwide we throw away
more than one billion tyres every year.

JOHN DOBYZE: Out of 1.2 billion, 1.4 billion tyres that's generated on a worldwide basis they
recycle about 400 million, and mostly they just use it as fuel, so there's huge amounts of tyres
that are dumped all around the world.

DR PETER GREENWOOD, FORMER EUREKA AWARDS JUDGE: Tyres are an enormous recycling problem. They're
extremely difficult to get rid of. They're a very rugged piece of material.

GENEVIEVE HUSSEY: In Australia a growing number of tyres are being successfully recycled, ground
into rubber crumbs and added to plastics, bitumen, ground coverings and industrial adhesives, but
half of those collected still end up shredded and buried as land fill.

DR PETER GREENWOOD: Over the years you've seen all sorts of part attempts, you know. They've been
ripped up to use for sandal soles, they're used to weigh down tarpaulins of farmers' crops and so
on. But it's not a complete process and from time to time people just burn them off as well, which
is absolutely disastrous because then you get lots of carbon dioxide into the air.

GENEVIEVE HUSSEY: Tyres are difficult to recycle economically. The cost of getting the rubber often
outweighs its value. John Dobyze began trying to extract the other raw materials from a tyre. After
pulling out the steel, he soaked the tyre in oil and a fascinating thing happened - the rubber
softened.

JOHN DOBYZE: And the metal rubber and the fibre separated from each other very, very easily and it
doesn't need much to separate it and grind it.

GENEVIEVE HUSSEY: A giant microwave oven then heats the rubber under vacuum to extract carbon and
almost 3 litres of oil from each passenger tyre. Some of it is re-used to soak more cut up tyres
which are then cooked in the microwave creating more oil. It's a self-sustaining process.

DR PETER GREENWOOD: He's come up with a selection of materials at the end of the process. So he's
got activated carbon, he takes oil out of the tyres and even the bits of rubber crumbs that are
left over he sells into the kitchen tile-making industries to combine with cork to make floor
coverings. So it's a really comprehensive innovation.

GENEVIEVE HUSSEY: John Dobyze has spent $3 million building a pilot plant on the Gold Coast. A
full-scale operation would cost up to $20 million. Despite the cost, he argues the technology can
make money.

JOHN DOBYZE: From a passenger size tyre we can make $3 profit.

GENEVIEVE HUSSEY: How does that compare? Does that make it worthwhile to do?

JOHN DOBYZE: Comparable technologies worldwide make 40 cents per tyre.

GENEVIEVE HUSSEY: John Dobyze's process has already won a Eureka Award for innovation. He's now
marketing his technology overseas. He's already signed a Heads of Agreement with a company in Korea
and hopes to license the process in Europe later this year. So how does it feel after all that time
to actually see it coming to fruition? That must be an amazing thing?

JOHN DOBYZE: Obviously I might have just had a nightmare, that I just woke up and became successful
and everybody is noticing it now.

KERRY O'BRIEN: Interesting contrast with our first story, an inventor who actually spent $3 million
to create a real technology. Genevieve Hussey with that report.