World Surveillance Group Inc (fka WSGI)

[eqbeck]

Way off base Coastie

This is the first section of the 8k I posted referencing the Mexican JV.

http://investor.globetel.net/phoenix.zhtml?c=67726&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd...

"AGREEMENT TO FORM JOINT VENTURE COMPANY

This JOINT VENTURE AGREEMENT (the "Agreement") is made and entered into as of
this 26th day of January 2007 by and between GLOBETEL COMMUNICATIONS CORP., a
Delaware corporation, with offices located at 9050 Pines Blvd., Suite 255,
Pembroke Pines, Florida, United States of America ("GlobeTel"), and VPN DE
MEXICO SA de CV, a company organized and existing under the laws of Mexico
("VPN") with offices located at Av. Reforma No. 2608 Col. Lomas Altas, C.P.
11950 Mexico D.F. (GlobeTel and VPN collective referred to as "the Parties" and
individually as a "Party")."

This is from the 10K referencing the SEC investigation.

http://investor.globetel.net/phoenix.zhtml?c=67726&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd...

"On October 6, 2006 the Company announced that the Securities and Exchange
Commission issued a formal order of investigation concerning among other things
certain accounting issues regarding the Company. In accordance with the
Company's established corporate governance procedures, the Board of Directors
has referred this matter to its Audit Committee (the "Audit Committee"). The
Audit Committee has commenced an investigation and will determine what action,
if any, the Company will take.

No conclusions have been reached by the Audit Committee to date, and the Company
cannot predict whether the results of the investigation will have any impact on
its financial results for the quarter and nine-month period ended September 30,
2006 or for any other period. As a result of the ongoing investigation, the
Company will not be able to file its Quarterly Report on Form 10-Q for the
quarter ended September 30, 2006 by the required filing date."

I suppose you could read it your way depending on your personal agenda, but without the first line referencing the SEC investigation, the internal audit would not have been triggered.