Thursday 28 Sep 2023
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KUALA LUMPUR (June 22): Serba Dinamik Holdings Bhd has yet to finalise the appointment of Ernst & Young (EY) to conduct the independent review over the audit matters flagged by its external auditor.

Speaking at a press conference today, Serba Dinamik's legal counsel Tan Sri Muhammad Shafee Abdullah said the decision still lies with its board of directors.

“This process of appointing an independent reviewer and whether it will be EY, they are still [deliberating],” said Muhammad Shafee.

Serba Dinamik today announced that it is suing KPMG over negligence, breach of contract and breach of statutory duty, after the auditor raised certain audit issues in the company’s books involving some RM4.54 billion in transactions for the 12-month period ended Dec 31, 2020.

At the press conference, Muhammad Shafee also pointed out that the idea to conduct an independent review was first mooted by KPMG.

“EY’s name was bandied about as a probable auditing company to conduct the independent review.

“The idea was started by KPMG, and KPMG started with a completely wrong process and a lack of investigation… It is therefore in the interest of the company to set aside the sort of ideas that the auditor has suggested,” Muhammad Shafee said.

“What has been announced on the independent review is status quo, and it will remain as what it is,” said Serba Dinamik largest shareholder and group chief executive officer Datuk Dr Mohd Abdul Karim Abdullah, who also attended the press conference.

“In terms of the timeline, we will work out the necessary timeline to meet the deadlines imposed onto the company. It should be manageable,” Mohd Karim added.

On June 14, Serba Dinamik said its board had agreed in principle to appoint EY as the independent reviewer to assess the veracity and accuracy of the matters highlighted by KPMG.

The audit issue first came to light in late May, after which the group said it intends to resolve the issue in order to prepare for its annual report publication by Oct 31, 2021.

According to the company, KPMG said it would stop the audit process unless and until Serba Dinamik undertook the independent review.

Shares of Serba Dinamik closed in the green today, rising 2.5 sen or 4.17% to 62.5 sen, valuing the oil and gas services group at RM2.31 billion.

Edited ByLam Jian Wyn
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