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Serba Dinamik not hiding findings update, audit firm refuses to sign off (NST)

KUALA LUMPUR: Serba Dinamik Holdings Bhd says it is not hiding a factual findings update (FFU) on the oil and gas services company written by Ernst & Young Consulting Sdn Bhd (EYC).

Serba Dinamik said it could not release the FFU as EYC refused to sign off on it.

The FFU remained unsigned and the company was put in a bad light by The Edge Weekly article on March 26, Serba Dinamik said in a three-page written response to the article entitled “What Serba Dinamik didn’t want you to know”.

“We wishes to state that the article written and published in The Edge dated on 26th March 2022 is inaccurate, deliberately incomplete and calculated to prejudice Serba Dinamik,” the company said in a statement.

Serba Dinamik contended that as authors of the FFU, EYC should sign off on it but the latter was not willing to.

The company pointed out that against the narrative that it was attempting to hide the FFU, the following questions should be raised:

* why did Bursa Malaysia compel Serba Dinamik to announce the FFU when it knew that it was not a document that was supposed to be prepared under a letter of engagement between the company and EYC?

* why does EYC refuse to sign off on what they have written? and

* why did the Securities Commission (SC) charge Serba Dinamik and its management but yet refuse to produce documents?

“Serba Dinamik would like to remind The Edge that it is EYC who should answer what they have written. What The Edge doesn’t emphasise is the fact that EYC refused to sign the FFU, EYC was not to prepare any interim report, while the SC and Bursa are not supposed to be given any FFU.”

The stock exchange operator had sought legal redress against Serba Dinamik for not adhering to its instructions and making public an FFU after a special independent review undertaken by EYC.

EYC was roped in after Serba Dinamik’s former auditor KPMG highlighted irregularities at the company, including reportedly total sales transactions of RM2.32 billion, a trade receivables balance of RM652 million and materials on site balance of RM569 million.

Serba Dinamik previously stressed that the only signed documents were charges brought by the SC stating that it had made a false statement, only with respect to the consolidated figure of sales.

“SC has yet to surface or provide the documents that will allow Serba Dinamik and its management to defend themselves. During this time, The Edge has engaged in reporting a multitude of alleged wrongdoings by Serba Dinamik in a fait accompli fashion.

“Serba Dinamik expects SC to follow through with the trial of the charges in an expeditious manner,” it said.

Serba Dinamik said it had lost at the High Court in seeking a declaration that Bursa had acted in breach of the listing requirements.

The company also lost its bid to seek a declaration of EYC as not an auditor and its invalid letter of engagement.

“Bursa has succeeded in its application to seek a court order to compel Serba to announce the FFU, which is pending hearing of a stay application at the Court of Appeal. Serba has appealed all cases it did not succeed in the High Court,” the company said.