SERBA Dinamik Holdings Bhd would probably have its dream come true with KPMG PLT having decided to resign as external editors of the company pursuant to Section 281 of the Companies Act 2016 (CA 2016) with immediate effect.
The global integrated oil & gas (O&G) service provider said it has received a notice in writing dated June 23 (today) from KPMG to that effect.
“KPMG in the notice stated that the suit filed by the company on June 22 against them in regard to the ongoing statutory audit of the company for the financial period ending June 30 has compromised their ability to independently continue the audit engagement and discharge their professional duties as auditor of the company,” Serba Dinamik pointed out in a Bursa Malaysia filing.
With the latest development, Serba Dinamik said it is currently identifying new auditors to be engaged pursuant to Section 271(2)(b) of the CA 2016 and will make an immediate announcement immediately upon the finalisation of appointment of its new auditors.
Commenting on the matter, Minority Shareholders Watch Group (MSWG) CEO Devanesan Evanson said Serba Dinamik would now have to appoint a replacement soonest to ensure that its audited financial statements come out on time.
“Pending that, the matters raised by KPMG should nevertheless be resolved in a timely manner; otherwise these matters will be left hanging,” he told FocusM. “The independent review is a good idea as it will help shed more light on the matters raised by KPMG.”
Recall that on June 22, Serba Dinamik has filed a writ and statement of claim against KPMG on the grounds of professional negligence, breach of contract and breach of statutory duty.
At time of writing, FocusM is still trying to get in touch with Serba Dinamik’s management if the company will now officially withdraw or continue to pursue the legal suit.
Interestingly, this could be the third “job loss” for KPMG this year after both Petron Malaysia Refining & Marketing Bhd and Malaysia Building Society Bhd went ahead to appoint PricewaterhouseCoopers PLT (PwC) as their new auditors.
At 2.47pm, Serba Dinamik was down 1 sen or 1.68% to 58.5 sen with 222.41 million shares traded, thus valuing the company at RM2.18 bil. – June 24, 2021