SC investigates oil services firm Serba Dinamik

KUALA LUMPUR (Reuters) - The Securities Commission said it has begun an investigation into oil and gas services firm Serba Dinamik Holdings Bhd after the company's auditors flagged issues last week.

On Friday, Serba Dinamik said KPMG had raised issues over more than RM3.5bil billion of contracts and transactions that the auditor had not been able to verify with 11 customers.

In an emailed response to Reuters on Monday, the regulator said it had secured documents and records from Serba Dinamik to assist its investigation, following the submission of the report from the company's auditors.

Shares in the company, which were suspended following last week's announcement that its auditor had informed it of statutory audit matters, plunged 29.8% as it resumed trading on Monday.

The company said it saw no issue concerning the legitimacy and existence of the contracts and it did not expect any material impact in the financial year ending on June 30.

It said it planned to appoint an independent firm to "review the accuracy and veracity" of the issues raised.

In a statement on Monday the company said it has engaged several potential international firms in discussions after consulting with the stock exchange.

"The group expects to finalise the appointment of the independent firm as soon as possible and will accord the to-be-appointed independent firm ample time and space to verify the matters raised with accuracy and veracity," it said.