Four independent directors resign from Serba Dinamik over KPMG issue


Four independent and non-executive directors resign from Serba Dinamik Holdings Bhd’s board in disagreement over legal action taken against its former external auditor KPMG.

In a filing to Bursa Malaysia the company noted that Datuk Seri Tengku Hasmuddin Tengku Othman, Hasman Yusri Yusoff, Sharifah Irina Syed Ahmad Radzi, and Rozilawati Basir unanimously disagree with the decisions of the board taken recently which is contrary to all their views.

Serba Dinamik noted their views were not in the best interest of the company, stakeholders, particularly the minority shareholders.

Yesterday in a written notice served to the group, KPMG said it has resigned as an external auditor for the company.

KPMG noted the suit filed by Serba Dinamik on June 22 against it has compromised its ability to independently continue the audit engagement and discharge its professional duties as external auditor of the company.

“The Company is currently identifying the new auditors to be engaged pursuant to Section 271(2)(b) of the Companies Act 2016 and will make an immediate announcement to this effect immediately upon the finalisation of appointment of the new auditors,” Serba Dinamik stated in the filing on Thursday.

Serba Dinamik on Monday decided to pursue legal actions against KPMG for causing reputational damages to the company after having raised red flags on the group account discrepancies amounting to RM4.54 billion.

Yesterday, Bursa Malaysia in a statement noted it is imperative for 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

The Securities Commission in another separate statement stated 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.

Both regulators also denied having spoken to Serba Dinamik’s Chairman Datuk Mohamed Ilyas Pakeer Mohamed regarding KPMG Ltd’s audit concern on the company.

Serba Dinamik closed at 41 sen.