IT was an open secret that the resignation of KPMG PLT as external auditor has substantially contributed to the fall of Sarawak Consolidated Industries Bhd (SCIB) share price yesterday.
Notably, share price of the Kuching-based construction firm tumbled in the afternoon session following the announcement of KPMG resignation with immediate effect.
After a steady rise in recent times, the counter closed down 5.5 sen or 7.59% to 67 sen with 21.28 million shares traded, thus valuing the company at RM329 mil.
To put the matter into perspective, SCIB has been seeking legal advice regarding recent events surrounding KPMG that has caused adverse speculation against the company.
This is in light of a perception that the company shares similarities to Serba Dinamik Holdings Bhd which is currently in litigation with KPMG.
To be frank, this piece of news even overshadowed the fact that SCIB will soon be making its maiden foray into the construction scene in Peninsular Malaysia vis-à-vis the securing of a RM138.5 mil project from the Terengganu State’s Public Works Department (JKR).
Commenting on yesterday’s event, SCIB independent non-executive director (INED) Shamsul Anuar Ahamad Ibrahim said while a decline was very much anticipated, the company will do its utmost best to find KPMG replacement soonest possible.
“Most importantly, we want investors to know that the fundamentals are still intact while the board will expedite the appointment of a new auditor to protect the interest of SCIB investors,” Shamsul Anuar, who is also SCIB’s audit committee chairman, told FocusM.
“The board will ensure the appointment process of the new auditor is independent … Also, it is not necessary for SCIB to have the same auditor as Serba Dinamik (Holdings Bhd) which is often linked to the company”.
Currently, SCIB seven-member board is made up of four INEDs comprising Shamsul Anuar, Datu Mohidden Ishak, Datu Soedirman Aini and Mohd Nazri Mat Noor.
The other three directors are non-independent non-executive chairman Datuk Mohd Abdul Karim Abdullah, managing director/CEO Rosland Othman and non-independent non-executive director Abdul Hadi Abdul Kadir.
At 4.10pm, SCIB was down 0.5 sen or 0.75% to 66.5 sen with 9.63 million shares traded, thus valuing the company at RM326 mil. – July 27, 2021
