How Serba has to fence off 3 opponents – SC, Bursa and The Edge

JUDGING by the way Serba Dinamik Holdings Bhd portrays The Edge in its latest media statement, it is no wonder that the financial publication (both daily and weekly) enjoys an unmatched supremacy in the realm of business reporting.

As observed by the global integrated oil & gas (O&G) service provider, The Edge was at the front row seats at almost every of its court hearing.

The Edge’s press coverage on Serba Dinamik is significantly higher than all other media channels combined,” Serba Dinamik pointed out but not without taking a swipe at the former by justifying that “the high press coverage by The Edge is possible because of the use of a media consultant by SC (Securities Commission).”

More precisely, Serba Dinamik pointed to the incidents of Dec 27 and Dec 28 last year whereby the SC meted out charges against Serba Dinamik and four company officers. On Jan 6, the company announced its audited financial statements whereby there is a disclaimer of opinion.

The Edge has portrayed Serba Dinamik in a negative light as a recalcitrant entity, refusing to act in accordance with the directives of the authorities,” opined the company.

“There are two implicit sub-stratums in the way The Edge has issued press reports on Serba Dinamik where there is a good guy bad guy storyline going on and that Serba Dinamik was hiding something. These themes are pervasive and not supported by actual facts.”

It is interesting to see if readers of The Edge – especially so those who have invested in its stock which coincidentally has been suspended for six months today (since Oct 22 last year) – would agree with Serba Dinamik’s claim.

“It is necessary to understand that The Edge did not report on the patterns of conduct and patterns of relationship concerning SC, Bursa (Malaysia Securities Bhd), EYC (Ernst & Young Consulting Sdn Bhd) and KPMG (PLT),” the company further argued.

“A very important central element in EYC engagement is that it is under the directive, purview and reporting to Bursa (Securities) and SC.”

Serba Dinamik went on to emphasise that the actions of KPMG (its former external auditor), EYC (its special independent reviewer), Bursa Securities and SC have produced one narrative set concerning “revenue, purchases, receivables, payables and materials on site balances”.

“(The) SC’s actions in drawing up the charges against Serba Dinamik have produced another narrative set whereby (it) only announced (that) revenue was alleged to be false (notably that of 4Q FY2020 which stood at RM6.01 bil),” the company pointed out.

“The takeaway is despite SC having the benefit of the KPMG report and the FFU (factual findings update), it confined the charges to the subject matter of revenue only.

“Serba Dinamik believes that this very interesting cocktail containing un-mixable layers had led to reports that the SC and Bursa Securities had objected to AG’s (Attorney-General) offer of a compound. There is no smoke without fire.”

In essence, Serba Dinamik said it wants to emphasise that the KPMG report, the FFU and the charges (by SC and Bursa Securities) have caused prejudice to Serba Dinamik, its lenders, customers, suppliers, and shareholders.

“These are the parties that had to bear the loss and damage,” insisted the company. “Serba Dinamik hopes that SC and Bursa Securities will explain what was the purpose of creating this very interesting cocktail that was served on Serba Dinamik and its stakeholders.”

Serba Dinamik was last transacted at 35 sen at the close of the mid-day trading on Oct 22 last year prior to the trading suspension of its shares/warrants, hence giving the company a market capitalisation of RM1.3 bil. – April 22, 2022

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