Finance Malaysia team received a media statement from Bursa Malaysia just now, and judging by a series of coverage on the audit issue of Serba Dinamik by us recently, we have decided to publish it on our blog for the benefit of the share trading community here.
On top of that, we will publish the statement from the Securities Commission as well below... (And, Serba Dimamik's immediate reply to Bursa's query...)
Bursa Malaysia's media statement:
In relation to recent developments in Serba Dinamik Holdings Berhad (“SERBADK”), Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) wishes to draw investors’ attention to the article entitled “What Serba Dinamik said on its audit issues” which appeared in The Edge CEO Morning Brief this morning. The article quoted the Chairman of SERBADK, Datuk Mohamed Ilyas Pakeer Mohamed, as having spoken to Bursa Malaysia.
Bursa Malaysia denies that such conversation ever took place.
To provide clarity to the market, it is imperative that SERBADK undertake the necessary steps to appoint the Independent Reviewer immediately to address the uncertainty surrounding the veracity and accuracy of the matters as highlighted by its external auditors in a timely manner.
In this regard, Bursa Malaysia has issued a query to SERBADK today to request a status update and timeframe in relation to the appointment of an Independent Reviewer.
The Exchange is committed to ensuring the proper dissemination of accurate and timely information to the capital market.
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Securities Commission Malaysia's media statement:
Meantime, Serba Dinamik very fast reverted to the said query from Bursa Malaysia on the same day as below:
Status of the appointment of the independent reviewer
The Board had on 14 June 2021, agreed to appoint an independent reviewer to assess veracity and accuracy of the matters highlighted by the external auditors, KPMG PLT. However, as of 22 June 2021 the Company has filed a writ and statement of claim against KPMG PLT on the grounds of professional negligence, breach of contract and breach of statutory duty.
Accordingly, the Board shall be deliberating this Friday 25 June 2021 whether the scope of the independent reviewer has to be expanded or otherwise. Based on legal advice, the Company is of the view KPMG PLT can no longer act independently as external auditors.
The Company will make an immediate announcement to this effect immediately upon the finalisation of the aforesaid scope of work. This announcement is dated 23 June 2021. (Source is here)
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Based on what has been said and done, I don't think KPMG can do anything more unless SC/ BURSA insists on KPMG to complete the review. In such a deadlock situation, what is the next step?
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