KUALA LUMPUR (March 29): Troubled oil and gas (O&G) company Serba Dinamik Holdings Bhd has stressed that it is not hiding a factual findings update (FFU) on the company written by Ernst & Young Consulting Sdn Bhd (EY Consulting) but cannot release it as the latter refuses to sign off on it.
In a three-page written response to The Edge Weekly article on March 26 entitled “What Serba Dinamik didn’t want you to know”, the group said as it stands, the FFU remains unsigned, and it was put in a bad light.
Serba Dinamik contends that as authors of the FFU, EY Consulting should sign off on it but the latter is not willing to.
The O&G company pointed out that against the narrative that it is attempting to hide the FFU, the following questions should be raised:
- why did Bursa compel Serba Dinamik to announce the FFU when it knew that it was not a document that was supposed to be prepared under a letter of engagement between the company and EY Consulting,
- why does EY Consulting refuse to sign off on what they have written, and
- why did Securities Commission Malaysia (SC) charge Serba Dinamik and its management but yet refuse to produce documents?
“Serba Dinamik would like to remind The Edge that it is EY Consulting who should answer what they have written,” the group stated.
“What The Edge doesn’t emphasise is the fact that EY Consulting refused to sign the FFU, EY Consulting was not to prepare any interim report, while SC and Bursa Malaysia are not supposed to be given any FFU."
Serba Dinamik pointed out that since it is not the author of the FFU, but was being compelled by Bursa to announce it, Serba Dinamik had asked EY Consulting to sign off on the FFU but EY Consulting had refused to do so.
It also said it was "not their problem to deal with" in relation to Bursa's request for Serba Dinamik to procure EY Consulting’s consent to allow the announcement of the FFU.
It added that Bursa filed proceedings pressing for the announcement of the FFU on the basis that it should be announced because it exists.
In the current imbroglio, the stock exchange operator had sought legal redress against Serba Dinamik for not adhering to its instructions and making public an FFU after a special independent review undertaken by EY Consulting.
EY Consulting was roped in after the former auditors KPMG highlighted irregularities at the company, including total sales transactions of RM2.32 billion, a trade receivables balance of RM652 million and materials on site balance of RM569 million.
For the record, Serba Dinamik stressed that the only signed documents are charges brought by SC stating that Serba Dinamik had made a false statement, only with respect to the consolidated figure of sales.
“SC has yet to surface or provide the documents that will allow Serba Dinamik and its management to defend themselves. During this time, The Edge has engaged in reporting a multitude of alleged wrongdoings by Serba Dinamik in a fait accompli fashion.
“Serba Dinamik expects SC to follow through with the trial of the charges in an expeditious manner,” it said, adding shareholders, creditors and the group have been significantly prejudiced.