“Few Top 10” auditors keen to fill up Serba Dinamik’s vacancy

SERBA Dinamik Holdings Bhd’s search for an external auditor to replace KPMG PLT which quit on June 24 is progressing smoothly with the company having received request for proposals (RFP) from “a few international auditors in the top 10 ranking”.

It is learnt that the global integrated oil & gas (O&G) outfit will shortlist its auditor candidates to two prior to commencing negotiation with the duo soonest.

“In short, the search for new auditor is progressing according to schedule. Suffice to say Serba Dinamik will strive to meet the end-July target,” a source close to the company’s top management told FocusM.

In a status update to Bursa Malaysia dated July 6, Serba Dinamik said it has submitted the RFP for provision of external audit to international audit firms on June 27 with its board targeting to appoint its new auditor by end of this month.

On other matters, the source said its special independent reviewer Ernst & Young Consulting Sdn Bhd (EY) has commenced its special independent review process while the company’s two newly appointed independent non-executive directors (INEDs) Datuk Seri Mohamed Farid Abu Hassan and Siti Zaleha Sulaiman are adapting well to its board functions.

Among others, EY which was appointed on July 2 is tasked to assess the validity and veracity of the transactions and balances with respect to the 11 identified customers on sales transactions, trade receivables and materials on sites as well as to quantify the possible financial impact, if any.

Meanwhile, former Special Branch director Mohamed Farid, 62, and former Bursa Malaysia corporate risk management head Siti Zaleha, 57, joined the Serba Dinamik board on July 7 following an en masse resignation of five INEDs on June 25.

Four of the INEDs have cited “differences in opinion with the decisions made by the board which is not to the best interest of the company” as the reasons for their departure.

“On another related development, the take-up rate for Serba Dinamik’s Pengerang Eco-Industrial Park (PeIP) sales is promising despite bleak prospect of economic slowdown stemming from the COVID-19 pandemic,” added the source.

In a nutshell, PeIP is an ecosystem of infrastructure, facilities, and providers of products and services housed within one location. The objective is to provide a one-stop centre to meet the needs for maintenance of plant and machinery.

PeIP is strategically located within 4km from the US$27 bil (RM110 bil) PETRONAS’ refinery and petrochemical integrated development (RAPID) project.

On a positive note, Serba Dinamik group managing director and CEO Datuk Dr Mohamed Abdul Karim Abdullah did not mince his words when he acquired 10 million shares in the open market on July 12 at an average price of 46.9 sen which raised his stake in the company to 21%.

In tandem with the bearish trend on the local bourse, Serba Dinamik closed 3.5 sen or 7.87% lower yesterday (July 14) to 41 sen with 234.12 million shares traded, thus valuing the company at RM1.53 bil. – July 15, 2021

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