‘Perghh, send a false statement apparently! The SC has been cheating like that all this time. '
The Securities Commission Malaysia (SC) has imposed a compound of RM3 million each on Serba Dinamik Holdings Bhd and 4 of its chief executives for submitting false statements involving RM6.01 billion in revenue for the financial period ended 31 December 2020 (FY20).
According to a statement from the SC, the value of RM3 million is the maximum amount allowed under Section 369 (a) (B) of the Capital Markets and Services Act (CMSA) for submitting false information in the company's financial statements.
The compound was imposed following the decision of the public prosecutor who accepted representations made to the Attorney General's Chambers by Serba Dinamik and individuals who have yet to complete the case in court.
Among the individuals charged with the compound were the Chief Executive Officer and Managing Director, Datuk Dr Mohd Abdul Karim Abdullah; Executive Director and former Chief Executive Officer of Finance (CFO), Datuk Syed Nazim Syed Faisal; Current CFO, Azhan Azmi; and Vice President of Accounts and Finance, Muhammad Hafiz Othman.
Apart from that, Muhammad Hafiz also imposed an additional compound of RM1 million for being found to have falsified the accounting records of a subsidiary of Serba Dinamik under Section 368 (1) (b) (i) for the offense of account forgery.
Following the record, KPMG has highlighted the issue of FY20 results to the Serba Dinamik board in May 2021.
As a result, KMPG decided not to resign in the FY20 account as Serba Dinamik's external auditor until there was a lawsuit for alleged negligence and breach of statutory contract duties.
Subsequently, Serba Dinamik appointed Ernst & Young Consulting Sdn Bhd (EY Consulting) as the special independent review auditor after Bursa Securities instructed the company to appoint an auditor to review KPMG's claims.
However, Serba Dinamik sued Bursa for allegedly 'exceeding its authority' and also sued EY Consulting to prevent any findings from being submitted.
Now, Serba Dinamik has to face Bursa in court following a civil suit against the group for failing to comply with the latest fact -finding information (FFU) publication directive.
Meanwhile, trading in Serba Dinamik shares was still suspended and last traded at 35 sen with a market capitalization of RM1.3 billion.
