Bursa rejects Serba Dinamik’s request for extension


The controversy-hit company said in a filing with the stock exchange that it had on Nov 23 requested a second extension up to Dec 31, citing the change of external auditor and impact of movement restrictions in Malaysia and abroad due to Covid-19 as reasons for the proposed extension

PETALING JAYA: Bursa Malaysia has rejected oil and gas company Serba Dinamik Holdings Bhd’s request for an extension of time to issue its annual report for the financial year ended June 30, 2021.

The controversy-hit company said in a filing with the stock exchange that it had on Nov 23 requested a second extension up to Dec 31, citing the change of external auditor and impact of movement restrictions in Malaysia and abroad due to Covid-19 as reasons for the proposed extension.

With the rejection, Serba Dinamik said it will be submitting an appeal to Bursa Malaysia in due course.

On Wednesday, the company announced the resignations of its chairman Datuk Mohamed Ilyas Pakeer Mohamed and independent director Johan Mohamed Ishak, less than six months after both joined the board.

Both said Bursa Malaysia’s stipulations had prevented them from carrying out their duties in a fair manner.

On the same day, Bursa Malaysia filings also showed that Serba Dinamik group managing director and chief executive officer Datuk Mohd Abdul Karim Abdullah (pic below) had disposed of 25 million shares or a 4.6% stake in KPower Bhd.

Serba Dinamik Mohd KarimSerba Dinamik Mohd Karim

Earlier this month, Serba Dinamik filed an originating summons against Bursa Malaysia at the Kuala Lumpur High Court, just months after it filed a legal suit against its former external auditor.

The company said it was seeking damages from the stock exchange regulator.

Serba Dinamik also wants an interim injunctive relief against Bursa Malaysia to prevent the latter from making any announcement on the “Factual Findings Update” prepared by Ernst & Young (EY).

Recall, EY was appointed by Serba Dinamik in July to undertake a “special independent review” on the company’s financial accounts, following directives from Bursa Malaysia on June 28 and July 2.

EY’s appointment was made after Serba Dinamik’s previous auditor, KPMG, highlighted questionable transactions worth some RM4.54bil. The company sued KPMG for alleged negligence and breach of duties.

Through the originating summons, Serba Dinamik is asking the High Court to declare that Bursa Malaysia’s instruction to appoint EY as a special auditor is “in excess of power, null and void and of no effect”.

Notably, this action by Serba Dinamik came roughly two weeks after Bursa Malaysia ordered the oil and gas services firm to reveal the “Factual Findings Update” from EY’s special independent review.

Bursa Malaysia has suspended, since Oct 22, the trading of Serba Dinamik’s securities, including all of its warrants.

In a late filing, Serba Dinamik said it had appointed two new directors, namely Noor Azri Noor Azerai, 22, and Abu Bakar Uzir, 43.

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