After backlash, Serba Dinamik withdraws EGM call to replace KPMG

KUALA KUMPUR: Serba Dinamik Holdings Bhd said Datuk Abdul Kadier Sahib has withdrawn a notice calling for an EGM to replace KPMG as the company's external auditors.

"The Board wishes to announce that the Company had on June 2 received a notice dated June 2 from Abdul Kadier requesting for the above Special Notice to be withdrawn," the company said in a filing today.

"The Board has accepted the Withdrawal Notice and in view of the above development, the above matter is now considered closed," it added.

Non-independent and non-executive Datuk Abdul Kadier Sahib, who owns a 15.96% stake in the company, on Friday called for an EGM to replace KPMG.

This was after KPMG had raised concerns over audit issues, including on transactions worth RM3.5bil with 11 customers.
 Serba Dinamik has rejected the auditors' concerns and planned to appoint an independent firm to review the issues.

The Securities Commission, on Monday, said it has opened an investigation.

Serba Dinamik's earlier plan to replace its auditors has alarmed watchdog groups and investors.

The Minority Shareholders Watch Group (MSWG), on Saturday, issued a statement to urge minority shareholders of Serba Dinamik Holdings Bhd to vote against attempts to replace KPMG as external auditors ahead of the company's annual general meeting (AGM).

Meanwhile The Malaysian Institute of Corporate Governance (MICG) says Serba Dinamik's response to the dispute between the external auditor has raised serious governance concerns.