FOR the first time since it decided to file a civil suit against its former external auditor KPMG PLT on June 22, Serba Dinamik Holdings Bhd feels truly vindicated that it has made the right decision.
Not only that odds of sorts were stacked against the global integrated oil & gas (O&G) outfit given that it is taking on a Big Four accounting firm, skeptics poured cold water on the company’s decision that it does not stand a fighting chance against the accounting giant.
Out of the blue today, the tide is turned in favour of the underdog, so to speak, with the Government of Malaysia, the Ministry of Finance Inc (MoF Inc), 1Malaysia Development Bhd (1MDB) and its various subsidiaries having filed a US$5.64 bil (RM23.64 bil) suit against 44 partners of KPMG Malaysia during the time the firm was 1MDB’s auditors.
This will be KPMG’s second legal case in less than a month after Serba Dinamik filed a legal suit against its former external auditor on grounds of professional negligence, breach of contract and breach of statutory duty.
“KPMG’s reputation and credibility are at risk of being ruined following the latest legal suit against them by the Malaysian Government,” chairman Datuk Mohamed Ilyas Pakeer Mohamed told FocusM.
The outspoken Mohamed Ilyas also took a further swipe at KPMG: “That’s the reason why we described them as shop lot auditor. I know many people angry with my statement but now people can see clearly what I meant to say is true after all.
The Malaysian Government et al suit against KMG entails alleged breaches of contract and negligence in the audit and certification of 1MDB’s financial statements for financial year March 31, 2010 (FY2010), FY2011 and FY2012.
KPMG was eventually sacked as auditor after it refused to sign off the FY2013 accounts.
In the statement of claim sighted by The Edge Markets, the plaintiffs said that between 2009 and 2014, some US$5.64 bil had been misappropriated from 1MDB and its related subsidiaries to the benefit of former premier Datuk Seri Najib Razak and his associates or nominees.
Of the US$5.64 bil, a sum of US$3.197 bil was misappropriated during the three financial years when KPMG was the auditor, namely FY2010, FY2011 and FY2012.
At today’s close, Serba Dinamik firmed 1.5 sen or 3.41% to 45.5 sen with 311.16 million shares traded (the day’s most actively traded stock), thus valuing the company at RM1.7 bil. – July 9, 2021
