Serba Dinamik shares edge lower on regulators denials

by PRIYA VASU

SERBA Dinamik Holdings Bhd shares have come under fresh selling pressure in morning trade, falling 4.7% or 2.5 sen to 57 sen.

In statements released yesterday, Bursa Malaysia and Securities Commission denied Serba Dinamik’s newly appointed chairman, Datuk Mohamed Ilyas Pakeer Mohamed, spoke to them regarding KPMG Ltd’s audit concern on the company.

“Bursa Malaysia denies that such conversation ever took place. To provide clarity to the market, it is imperative that Serba Dinamik to 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,” said Bursa in the statement.

Bursa Malaysia issued a query to Serba Dinamik yesterday 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,” said Bursa.

The Securities Commission in another separate statement said auditors have a statutory obligation to immediately report to the SC, if they reasonably believe that there are any matters which may constitute a breach or non-performance of any requirement of securities laws, rules of the stock exchange or any matter which may adversely affect to a material extent the financial position of the listed company SC clarified it has not spoken to Mohamed Ilyas as reported in the article entitled “What Serba Dinamik said on its audit issues”, which appeared in The Edge CEO Morning Brief yesterday.

“SC’s investigation into Serba Dinamik is still on-going,” said SC.

Serba Dinamik on Monday moved to pursue legal actions against KPMG for causing reputational damage to it after having raised red flags on the group’s accounting discrepancies.