ATTORNEY-GENERAL Tan Sri Idrus Harun has finally given in to mounting pressure for the Attorney-General Chambers (AGC) to justify its decision for the Securities Commission (SC) to compound Serba Dinamik Holdings Bhd – exactly one month since the compound notice was issued to the integrated global oil & gas (O&G) outfit and its four key personnel.
In light of the evidence in support of the charges and to avoid a long and protracted trial, the AGC upheld the view that public interest would be better served by compounding the offences allegedly committed by Serba Dinamik and its executives.
“By compounding the offences, the need for punitive action against Serba Dinamik is immediately achieved without going through a lengthy trial,” the AGC pointed out in a media statement. “Thereafter, Serba Dinamik can re-direct resources and time to coordinate with the authorities to comply with the requirements of the law.”
Moreover, the AGC is also of the view that the criminal proceedings against Serba Dinamik ought not to be pursued due to the economic consequences of doing so.
“The impact of the charges on Serba Dinamik is disproportionate with the severity of the alleged offences committed,” opined the AGC.
“As at the date of this media release, Serba Dinamik is facing winding up petitions from creditors which jeopardise the livelihood of its employees and the interest of shareholders and other creditors.”
Under such circumstances, the AGC found that compounding the offences is an adequate form of punishment for the alleged offences.
“This would then allow Serba Dinamik to focus on rectifying errors and effecting immediate compliance with regulations of Bursa Malaysia and the SC as the company had clearly done so in the past without fault,” rationalised the AGC.
“The AGC is mindful of the standard of proof required of the prosecution to prove the charges based on the evidence available and is strongly of the view that compounding the offences allegedly committed by Serba Dinamik and its executives is the most appropriate action to take under the circumstances.”
Accordingly, the AGC said it had on April 7 given SC its consent to compound Serba Dinamik and its four key personnel pursuant to Section 373 of the Capital Markets and Services Act (CMSA) 2007 for a total sum of RM16 mil which was fully settled on May 9.
Earlier, the AGC in providing a chronology of events said the SC had on December last year recommended that Serba Dinamik and the said four key executives be prosecuted for the alleged contraventions of the CMSA 2007.
This is when the AGC noted that the evidence against Serba Dinamik and its four executives was circumstantial in nature and required the application of the deeming provisions of Section 367(1) of CMSA 2007 which deemed these executives to have committed the offences based on their capacity as directors or officers of the company.
“The SC convinced the AGC that prosecution was a necessary course of action for this case. Thereafter, the AGC gave its consent to prosecute to the SC. Serba Dinamik and its executives was consequently charged in court on Dec 28 last year,” noted the AGC.
Subsequently, the AGC had on March 21 received a representation letter dated March 17 from Serba Dinamik, requesting, among others, that the AGC re-consider the charges preferred against Serba Dinamik and its four executives.
“Serba Dinamik further proposed that the offences be compounded. The said letter from Serba Dinamik was forwarded to the SC for their immediate attention,” explained the AGC.
“Thereafter, the AGC discussed the said representation letter with investigating officers from the SC. The matter was also discussed by the Attorney-General (Idrus) with the SC’s chairman (Datuk Syed Zaid Albar).” – May 13, 2022