Dubber Ousts CEO Steve McGovern Amid Alleged Misappropriation of Funds

Dubber, the call recording software company, has taken swift action by terminating the employment of Chief Executive Officer Steve McGovern following an internal investigation into the disappearance of $30 million of company funds. The company announced the termination on Tuesday evening alongside the launch of a $24 million emergency capital raise to address the missing cash.

Executive Director Peter Pawlowitsch has assumed the role of acting CEO until a permanent replacement is found. Additionally, former Telstra and Optus executive David Coventry has been appointed as Deputy CEO.

Dubber’s shares have remained suspended on the ASX for six weeks after the discovery that funds intended to be held in trust may have been misused by either McGovern or the trustee. The investigation revealed alleged unauthorized use of the funds, implicating McGovern and the trustee in actions detrimental to the company’s interests.

While approximately $3.4 million of the missing funds have been recovered, Dubber continues its efforts to reclaim the remaining $26.6 million. The Australian Securities and Investments Commission (ASIC) has obtained interim orders preventing McGovern and the third-party trustee, Mark Madafferi, from leaving Australia during the investigation.

Dubber intends to raise $24 million through a discounted share offering, with Morgans underwriting the deal and Unified Capital Partners also involved. Thorney Technologies, owning 19.9% of Dubber, agreed to provide a $5 million secured loan as bridge financing on March 15.

The swift actions undertaken by Dubber’s board underscore their commitment to accountability and transparency, signaling their determination to rectify the situation and safeguard the company’s financial integrity.

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