SERBA Dinamik Holdings Bhd has today confirmed a FocusM report yesterday (June 13) by officially agreeing to appoint Ernst & Young Advisory Services Sdn Bhd (EY) as the independent reviewer to assess veracity and accuracy of the matters highlighted by the external auditors, KPMG PLT.
“An updated announcement will be made upon the finalisation of terms and conditions of the said appointment,” the global integrated oil & gas (O&G) service provider pointed out in a Bursa Malaysia filing this afternoon,
EY is one of the largest professional services firms with more than 2,400 employees in 16 offices nationwide. The global leader in assurance, tax, transaction and advisory services serves a broad range of clients across all principal industry sectors and market segments in Malaysia.
Alongside the EY’s appointment Serba Dinamik has also announced the appointment of three new “hands-on” independent non-executive directors (INEDs) to its board as per highlighted in FocusM yesterday.
The trio who are respectful individuals in the corporate world with strong experience and background in governance, legal and restructuring of companies comprised Datuk Mohamed Ilyas Pakeer Mohamed, 65; Johan Mohamed Ishak, and Masleena Zaid, both 45.
The appointment is perceived as a move in the right direction to accelerate the formation of two review bodies tasked to examine auditing issues pertaining to its FY2020 financials that have been flagged by external auditor KPMG on May 25.
Mohamed Ilyas who is the most senior of the three INEDs is currently the executive chairman of Koperasi Amanah Pelaburan Bhd, Hartanah AP Rakyat Bhd, CTG Capital Sdn Bhd, HAF Automotive Sdn Bhd, AP Holdings Bhd and Awesome TV (a subsidiary of Awesome Media Network Sdn Bhd).
Johan was the former CEO of Media Prima Bhd (2017-2020) as well as CEO of MyCreative Ventures Sdn Bhd, an investment arm of the Finance Ministry (2012-2017).
He also has extensive accounting and auditing exposure with Deloittee Touche Tohmatsu International and PricewaterhouseCoopers (PwC) as well as being a member of the Malaysian Institute of Accountants (MIA) (since 2002) and a fellow of the Chartered Accountants Australia New Zealand (CAANZ) (since 1997).
Meanwhile, Masleena who is a lawyer by training was a former prosecuting officer at the Securities Commission between February 2001 and June 2008. She is currently a managing partner at legal firm Masleena, Yee & Partners as well as an INED at AP Holding Bhd and Eastland Equity Bhd.
Commenting on the appointments, Minority Shareholders Watch Group (MSWG) CEO Devanesan Evanson credited the Serba Dinamik board for its wisdom to appoint three new INEDs “as the best and fastest way to resolve the (pending) issues.”
“They say there are more than one way to skin a cat but what is important is that one adopts the fastest way,” he told FocusM. “Minority shareholders have suffered due to the falling share price due to the uncertainty arising from the unresolved audit issues – time is of the essence.”
Knowing better the dynamics, competency and capacity of the current board, Devanesan opined that there is no need to second guess the wisdom of the board in this instance.
“As an aside, does this mean that the services of the three INEDs will continue indefinitely or will they step-down once the issues have been resolved?” he asked.
With regard to EY’s appointment, Devanesan said this is the company’s right as everyone is entitled to a second opinion.
“There is a difference between opinion shopping and a genuine seeking of a second opinion,” he opined. “It augurs well for the company that the second opinion that they are seeking is from a Big Four accounting firm.” – June 14, 2021
