Serba independent non-exec directors raise concerns


In a statement posted on the company’s website yesterday, the independent directors said they shared the concerns along with the board of directors, the management, the shareholders and stakeholders.

PETALING JAYA: Serba Dinamik Holdings Bhd’s independent non-executive directors have expressed concerns about the current situation relating to the audit issues flagged by the external auditor.

In a statement posted on the company’s website yesterday, the independent directors said they shared the concerns along with the board of directors, the management, the shareholders and stakeholders.

“The management, together with the board of directors have taken and are taking initiatives to restore the situation, among others, by appointing independent firm to assess veracity and accuracy of the matters raised by the external auditors, independently and objectively, without element of interference from any party, and to report results of the assessment to the established independent committee, ” the statement said.

They also said the composition of membership of the established independent committee has no representation from the management to ensure its independence.

On Wednesday, Serba Dinamik announced that it had received a notice from its second largest shareholder Datuk Abdul Kadier Sahib to withdraw the special notice for the termination of auditors, KPMG PLT and the proposed nomination of BDO PLT as the new auditors, after his due consideration, based on concerns raised by the shareholders and stakeholders that have been supporting the company.

The independent directors said the board of directors then accepted the withdrawal notice and in view of the above development, the above matter is now closed.

“Rest assured that we will ensure that the company’s corporate governance is at the highest level and we remain independent in executing our responsibilities, ” they said in the statement.

Last week, Serba Dinamik said that its auditor KPMG had not been able to verify contracts and transactions totalling RM3.5bil with 11 customers.

Serba Dinamik rejected the auditor’s concerns and said there were no issues with the contracts. It plans to appoint an independent firm to review the issues, while the country’s securities regulator has opened an investigation.

Reuters reported on Wednesday that Permodalan Nasional Bhd (PNB) and the Employees Provident Fund (EPF) were engaging with the company. They are Serba Dinamik’s fifth and third-biggest shareholders, respectively, based on Refinitiv data.

“PNB has informed the Serba Dinamik board of directors of the firm’s deep concern about recent developments, ” PNB said in an e-mailed statement to Reuters. PNB is Malaysia’s largest fund manager.

PNB also said there was no merit in removing the appointed auditor before the annual audit is finished, and said it reserved its right to vote against any resolution to replace the current auditor.

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