SERBA Dinamik Holdings Bhd shall do its utmost best to comply with Bursa Malaysia’s directive to appoint an accounting firm soonest to commence a special independent review to address the concerns raised by former external auditor KPMG PLT which resigned last week.
However, this is subject to a favourable response from KPMG’s solicitors Lee Hishammuddin Allen & Gledhill to provide their client’s consent to cooperate with Ernst & Young Consulting Sdn Bhd (EY) which has in principle agreed to act as the company’s independent reviewer.
In a stock exchange filing yesterday (June 28), Serba Dinamik noted that EY has agreed to act as the company’s independent reviewer subject to obtaining a written confirmation from KPMG to extend co-operation in the provision of access and information to understand the various alleged irregularities and identified anomalies.
“In all fairness, the ball is in KPMG’s court … we shall adhere to Bursa Malaysia’s instruction so long as KPMG does their part,” Serba Dinamik’s chairman Datuk Mohamed Ilyas Pakeer Mohamed told FocusM.
In a statement, Bursa Malaysia has instructed Serba Dinamik to appoint an international accounting firm or an accounting firm with an international affiliation – and with adequate experience and resources – to conduct a special independent review to address the concerns raised by KPMG.
Moreover, the appointed accounting firm must have a presence in Bahrain and other overseas locations where Serba Dinamik’s customers and suppliers are located as highlighted by KPMG.
The directive comes as the stock exchange noticed that Serba Dinamik has not announced the appointment of an independent reviewer until now.
Bursa Malaysia said the directive is given to ensure the audit issues highlighted by KPMG are addressed in a “timely manner and provide clarity to the market”.
The market regulator also told Serba Dinamik to ensure that the scope for the special independent review should be as per agreed between the company’s audit committee and EY where the scope was shared with Bursa Malaysia on June 15.
For the record, five independent directors of Serba Dinamik had resigned last Friday (June 25) while EY was then known as Ernst & Young Advisory Services Sdn Bhd prior to assuming its current name Ernst & Young Consulting Sdn Bhd.
Last but not least, the appointed accounting firm must report directly to Bursa Malaysia and the Securities Commission (SC) periodically on the progress of the special independent review as well as the findings upon completion of the review exercise. – June 29, 2021