Two Serba Dinamik board members resign

by PRIYA VASU / pic by TMR FILE

SERBA Dinamik Holdings Bhd’s chairman and independent non-ED Datuk Mohamed Ilyas Pakeer Mohamed and independent director Johan Mohamed Ishak have resigned. 

In a filing to Bursa Malaysia yesterday, the company stated that their resignation was driven by requirements imposed by Bursa Malaysia Securities Sdn Bhd on Serba Dinamik that prohibited both Mohamad Ilyas and Johan from fairly discharging their duties as independent director of the company vis-a-vis an independent director’s responsibilities to the company, its shareholders and the overall fairness of independent director’s role in Malaysian capital market. 

“Adhering to the requirements imposed by Bursa would put him in an untenable position, contradictory to the said responsibilities above mentioned, as it necessitates, in his opinion, premature and unfair actions due to the incomplete Special Independent Review (SIR) by Ernst & Young Consulting Sdn Bhd (EY) that is still ongoing and thus inconclusive,” the company stated in separate filing for both men. 

Serba Dinamik has come under the spotlight after external audit firm KPMG Ltd in May flagged more than RM4.54 billion in questionable transactions. 

Serba Dinamik has since filed suit against KPMG, Bursa Securities and EY that was contracted to conduct SIR on the issues flagged by KPMG. 

The suit against EY is to restrain the company from sharing any of the findings from the review it undertook with anyone. 

On Tuesday, Bursa Securities filed an originating summons against Serba Dinamik under the Capital Markets and Services Act 2007 to order the company to make an immediate public announcement of the factual findings update on the SIR as at Sept 30, 2021, done byEY. 

“This is necessary for the purpose of upholding and upkeeping the integrity of the capital market, interalia, maintaining a level-playing field, advancing the ‘blue sky’ principle and facilitating equal access to material information affecting a listed issuer. 

“This is paramount to enable Bursa Securities, who is entrusted with its statutory duties, to ensure an orderly and fair market in the securities that are traded through its facilities and to take all appropriate action to secure compliance with its rules,” the regulator stated. 

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