Serba Dinamik Holdings Bhd appoints Ernst & Young Advisory Services Sdn Bhd as the independent reviewer to assess the audit issues involving about RM3.5 billion of transactions highlighted by external auditor KPMG PLT.
Serba Dinamik Holdings Bhd appoints Ernst & Young Advisory Services Sdn Bhd as the independent reviewer to assess the audit issues involving about RM3.5 billion of transactions highlighted by external auditor KPMG PLT.

KUALA LUMPUR: Serba Dinamik Holdings Bhd has appointed Ernst & Young Advisory Services Sdn Bhd as the independent reviewer to assess the audit issues involving about RM3.5 billion of transactions highlighted by external auditor KPMG PLT.

Serba Dinamik, in an exchange filing today, said its board of directors had agreed to E&Y's appointment.

E&Y will help the oil and gas (O&G) services company resolve irregular issues on the multi-billion sales transactions.

KPMG had raised issues relating to sales, trade payables and material on site balances involving 11 parties which accounted for total sales transactions of RM2.32 billion, a trade receivables balance of RM652 million and materials on site balance of RM569 million.

KPMG also raised issues around Serba Dinamik's customer and supplier in Bahrain, involving total sales transactions of US$101 million (RM417.48 million) and trade receivables balance of US$24 million (RM99.2 million)

Serba Dinamik's second-largest shareholder Datuk Abdul Kadier Sahib, who reportedly owns a 15.96 per cent stake, had previously sent a notice to the company proposing to change the external auditor.

Abdul Kadier also proposed appointing BDO PLT as the company's new auditor for the year ending June 30, 2021.

However, he had recently withdrawn a notice calling for an extraordinary general meeting (EGM) to replace KPMG as the company's external auditor.

In a separate filing today, Serba Dinamik said it had has appointed Datuk Mohamed Ilyas Pakeer Mohamed, Masleena Zaid and Johan Mohamed Ishak as independent directors effective from last Friday. 

Johan, 45, is currently Awesome Media Network Sdn Bhd managing director.

Mohamed Ilyas, 65, is a chairman of Koperasi Amanah Pelaburan Bhd, Hartanah AP Rakyat Bhd and AP Holding Bhd.

Masleena, 45, is currently a managing partner at Messrs Masleena, Yee & Partners.

She also holds directorship positions at Eastland Equity Bhd and AP Holdings.

Serba Dinamik board also clarified that it had identified the independent directors to form the independent committee, according to another filing today.

The clarification has denied such speculation about the company finalising four members for audit forensics.

Serba Dinamik's board had tasked the independent directors to finalise the composition of the independent committee and its terms of reference.

Serba Dinamik shares recorded a new low at 54 sen during the morning trading before climbing to 56 sen at noon break.