ERNST & Young Consulting Sdn Bhd (EY) has in principle agreed to act as Serba Dinamik Holdings Bhd’s independent reviewer subject to obtaining a written confirmation from the latter’s former auditor KPMG PLT for co-operation in the form of access and information to understand the various alleged irregularities and identified anomalies.
Among others, the required assurance by EY encompasses (i) the confirmation process of matters sent to identified customers; and (ii) relevant work papers including confirmations and correspondences in relation to the findings and concerns raised.
Such is the explanation furnished by Serba Dinamik in its response to Bursa Malaysia’s request for status update on the appointment of its independent reviewer.
Earlier, the integrated oil & gas (O&G) service provider said its board had held a meeting with EY representatives on June 25 to finalise the latter’s engagement as its independent reviewer to assess the veracity and accuracy of the matters highlighted by KPMG pertaining to its FY2020 statutory audit.
“Accordingly, following the board meeting on June 25, our solicitors Messrs Shafee & Co have written to Messrs Lee Hishammuddin Allen & Gledhill, the solicitors of KPMG, for confirmation of the above requirement put forward by EY,” Serba Dinamik pointed out in its latest Bursa Malaysia filing.
“The company is currently awaiting a response from KPMG through their solicitors.”
More generally, EY had also informed the Serba Dinamik board that they are willing to act as the company’s independent reviewer provided both parties agree from the onset that the work is performed independently and objectively for the benefits of all stakeholders.
Towards this end, EY need to have full and unfettered access to KPMG for information and confirmation for the purpose of analysing the transactions and concerns highlighted as well as for its engagement to be under close involvement and supervision of the Securities Commission (SC) and Bursa Malaysia.
Additionally, EY has also stated that its engagement is also via reporting to Serba Dinamik’s independent board members and without changes to scope of the engagement as previously agreed with the company’s independent directors (five independent directors resigned on June 25) and Bursa Malaysia.
At the close of trading today, Serba Dinamik was down 8.5 sen or 20.73% to 32.5 sen with 612.7 million shares traded, thus valuing the company at RM1.21 bil. – June 28, 2021
