Serba Dinamik now says its board will meet on Friday to decide on independent review scope

Serba Dinamik now says its board will meet on Friday to decide on independent review scope
-A +A

KUALA LUMPUR (June 23): Serba Dinamik Holdings Bhd said its board of directors will meet on Friday (June 25) to decide whether or not to expand the scope of work to be undertaken by the proposed independent reviewer with regards to audit matters flagged by its external auditor.

"The company will make an immediate announcement to this effect immediately upon the finalisation of the aforesaid scope of work," the group said in a filing today in response to a query from Bursa Malaysia on the status of the appointment of the independent reviewer.

Today's announcement comes just a day after the oil and gas services provider stated that it has yet to finalise the appointment of Ernst & Young (EY) as an independent reviewer to assess the veracity and accuracy of the matters highlighted by external auditor KPMG PLT late last month.

Speaking at a press conference yesterday, Serba Dinamik's lawyer Tan Sri Muhammad Shafee Abdullah said the decision on the appointment still lies with its board of directors.

“This process of appointing an independent reviewer and whether it will be EY, they are still [deliberating],” Muhammad Shafee had said.

The group had announced on June 14 that its board had agreed in principle to appoint EY as an independent reviewer.

In its filing today, Serba Dinamik noted that the group had  filed a lawsuit against KPMG yesterday for alleged professional negligence, breach of contract and breach of statutory duty.

"Based on legal advice, the company is of the view KPMG can no longer act independently as external auditors," it said.

Shares of Serba Dinamik closed three sen or 4.8% lower at 60 sen, giving the group a market capitalisation of RM2.2 billion.
The counter saw 126.44 million shares changing hands.

The stock has declined by 62.73% from RM1.61 over the past month.

Read also:
Serba Dinamik to take legal action against external auditor KPMG for alleged negligence
No basis for legal action, says KPMG on Serba Dinamik suit
KPMG says audit was proper and will contest Serba Dinamik’s suit — but can a company sue its auditor? 
SC says Serba Dinamik probe ongoing and auditors must do their work without fear or favour
Selling persists as Serba Dinamik sues KPMG for alleged negligence

S Kanagaraju