This article first appeared in The Edge Malaysia Weekly on December 6, 2021 - December 12, 2021

Last Tuesday (Nov 30), the same day that Serba Dinamik Holdings Bhd reported an unaudited net loss of RM42.1 million for its first quarter ended Sept 30, 2021, without comparative figures from the previous corresponding period, those watching the standoff between the company and market regulators alongside two big audit firms also found out via stock exchange filings that the High Court had on Nov 29 blocked from the public eye court papers surrounding their legal suit.

The court’s decision that the affidavits, which contain updates on the special independent review (SIR) by EY Consulting on issues raised by KPMG on FY2020 financial statements, be “locked out from the court system for view and/or download by all parties except the court”, followed an application by Serba Dinamik “to redact the Factual Findings Update and the relevant paragraphs in the affidavit in support that made reference to the Factual Finding Update”.

And in a separate announcement in reply to a query by the stock exchange asking that Serba Dinamik “make an immediate announcement to the Exchange … to clarify [three articles appearing in theedgemarkets.com website on Nov 23, Nov 24 and The Edge weekly dated Nov 29] and any development thereof”, the board of directors of Serba Dinamik said the articles “concern the subject matter of the proceedings brought by Bursa Malaysia Securities Bhd against the company”. The company also said it had been “advised that any deliberation and/or circulation of the articles is sub judice, which would tantamount to an interference of the subject matter of the court proceedings and is in fact open to the company to take out committal proceedings against interfering parties” and that it will take steps to protect its interest in the event it is prejudiced.

The decision to seal court documents is not a surprise given the circumstances. We trust that the court would act speedily given that the matter involves not only the investing public but also both of the country’s securities regulators.

We reiterate what we have said to Serba Dinamik: If indeed the information contained in the SIR is not “material”, why not release it to the public and prove that the regulators are wrong, instead of taking them to court? Wouldn’t that prove once and for all that you have nothing to hide?

We also repeat our message to Bursa Malaysia: Lift the trading suspension on Serba Dinamik shares and let the market show what it thinks of the information blackout.
 

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