AGC explains decision to drop criminal proceedings against Serba Dinamik

KUALA LUMPUR: Criminal proceedings against Serba Dinamik Holdings Bhd (SDHB) ought not to be pursued due to the economic consequences of doing so, according to the Attorney General’s Chambers (AGC).

“The impact of the charges on SDHB is disproportionate with the severity of the alleged offences committed. As at the date of this press release, SDHB is facing winding up petitions from creditors, which jeopardise the livelihood of SDHB’s employees and the interest of shareholders and other creditors,” AGC said in a statement Friday.

ALSO READ: Serba Dinamik top execs acquitted after RM16mil compound settlement

In these circumstances, the AGC finds that compounding the offences is an adequate form of punishment for the alleged offences.

“This would then allow SDHB to focus on rectifying errors and effecting immediate compliance with regulations of Bursa Malaysia and the Securities Commission (SC), as SDHB had clearly done so in the past without fault,” it added.

Earlier, top executives of the troubled oil and gas company, including its chief executive officer Datuk Mohd Abdul Karim Abdullah, have been acquitted by the Sessions Courts of charges involving offences under the Capital Markets and Services Act (CMSA) 2007.

This follows a RM16mil compound payment imposed by the Securities Commission (SC) that was settled on May 9, the court heard.

The AGC is of the view that the public interest would be better served by compounding the offences allegedly committed by SDHB and its executives.

ALSO READ: Serba, top execs complete settlement of compounds

“By compounding the offences, the need for punitive action against SDHB is immediately achieved without going through a lengthy trial.

“Thereafter, SDHB can redirect resources and time to coordinate with the authorities to comply with the requirements of the law,” it said, adding that SDHB and the said executives were willing to accept the maximum amount of compound imposable by the SC.

The AGC is mindful of the standard of proof required of the prosecution to prove the charges based on the evidence available and strongly of the view that compounding the offences allegedly committed by SDHB and its executives is the most appropriate action to take under the circumstances.

Accordingly, on April 7, 2022 the AGC gave its consent to compound the said offences to the SC. The SC, pursuant to section 373 of Act 671, accordingly compounded these offences.

In this regard, the SC had decided to impose a maximum compound on SDHB and its executives, respectively.

On April 13, 2022, notice of compound was issued to SDHB and its four executives respectively and the total amount of compound to be paid is RM16mil which they had paid on May 9, 2022.

Serba Dinamik was charged under Section 369(a)(B) of the CMSA 2007 involving a false statement relating to the revenue recorded by the group in its financial report for the fourth quarter ended Dec 31, 2020 (4QFY20).

The false statement submitted to Bursa Malaysia was in relation to a revenue figure of RM6.014bil contained in the quarterly report.