MADRID, July 6 (Xinhua) -- Jenaro Garcia, the President of the Internet network company Gowex, has presented his resignation after admitting "false" accounts for the last four years.
Gowex sent a note to the Alternative Stock Market in Madrid (MAB) in the early hours of Sunday morning admitting that "the accounts of the society for at least the past four years no do not reflect its true image."
Meanwhile a meeting of the Board of Directors of the Spanish based company held on Saturday has "revoked the powers and the delegation of faculties," granted to Garcia while at the same time solicited opening bankruptcy proceedings "given that it is unlikely the company cannot face it current debts."
Gowex was floated on the MAB in March 2010 and in November 2013 it was named as a candidate for the Stock Market Performance by a Small or Medium Sized Company, by the European Union.
Meanwhile Garcia won awards such as the Ernst and Young Entrepreneur of the Year in 2011 and the Spanish Premier Emprendedora prize for his work in establishing an overseeing the growth of a company which supplies free Wi-Fi in a host of Spanish, European and World cities.
However, the first questions were raised about the true state of Gowex on Tuesday when a report by the consultancy firm, Gotham City Research LLC insisted the company's shares were worthless and 90 percent of the group's income "didn't exist."
Although Gowex insisted the report was "totally false," the value of its shares fell by 60 percent in two days and in Thursday the MAB suspended trading in Gowex shares, while Gowex was told to prepare a report in order to "prove the accusations were without any foundation."
This document was initially to be published on Friday, but then delayed until before the market re-opened on Monday as doubts over Gowex's solvency continued to climb.
On July 2, Gowex said it had billed 182.6 million euros(248 million U.S. dollars) and has savings of 54.8 million euros. The accountancy firm Price Waterhouse and Coopers will now carry out an audit to discover the true state of Gowex's accounts. (1 euro = 1.36 U.S. dollars)