The peculiarities with Securities Commission’s (SC) charge sheet against Serba Dinamik (Part 1)

By Pearlwhite 29^th December 2021 7.48PM

Finally, after months of misinformation rhetoric on the matters that were being reviewed in the Special Independent Review (SIR), it can now be deduced that RM1.438 billion of in-complete and inconclusive SIR matters relates exclusively to revenue in the financial statements of the Quarterly Report for the period ended 31^st December 2020.

Misinformation rhetoric against Serba Dinamik

For the past 7 months, misinformation rhetoric about the SIR matters were about customers, local suppliers, Bahrain customer & suppliers and IT Contracts involving multiple customers and vendors.  With the SC charge sheet, local suppliers, Bahrain customer & suppliers and IT Contracts involving multiple customers and vendors can now be excluded.

As revealed previously in “Serba Dinamik - Two thirds cleared with one third being finalised. A little more to go”,

https://klse.i3investor.com/blogs/Pearlwhite/2021-12-06-story-h1594827383-Serba_Dinamik_With_RM3_billion_cleared_EY_continues_to_work_on_RM1_4_bi.jsp

this exclusion from SC’s charge sheet amounts to between RM2 billion to RM3 billion of audit discrepancies highlighted by KPMG as being resolved.

SC charge sheet against Serba Dinamik is most likely inconclusive

In “Serba Dinamik is ever so helpful, but the rest refuses to leave Malaysia to finalise the SIR”

https://klse.i3investor.com/blogs/Pearlwhite/2021-12-07-story-h1595475008-Serba_Dinamik_is_ever_so_helpful_but_the_rest_refuses_to_leave_Malaysia.jsp

if the parties involved in the SIR are un-willing to cross Malaysia’s borders, then RM1.438 billion will not be resolved.

This was re-affirmed in a letter dated 29^th October 2021 from EY Consulting (EY) to Serba Dinamik, EY confirmed that the factual findings update was subject to verification and collaborativeness.

It is remarkable that SC was able to complete in its own SIR within 1.5 months of putting in additional resources, as disclosed by SC in an email reply to The Edge on 12^th November 2021.  SC has achieved what EY couldn't accomplish over 4 months.

However, Serba Dinamik was not availed the opportunity to address SC’s conclusion, however inconclusive, for SC to come to a conclusion without doubt and proceed with the charge sheet.

Certain members of Serba Dinamik’s Board of Directors (BOD) were not charged

It is ironic that certain members of the BOD were charged, when 2 other Non-Independent Executive Directors were not when all BOD members are ultimately accountable and responsible to address SC’s charge sheet.

Interference with Serba Dinamik’s Annual Report 2020 disclosure

Serba Dinamik had consistently decided to uphold the compliances with the approved auditing and accounting standards by allowing the auditor to perform their duties without interference and time constraints.

With SC’s charge sheet, the Annual Report 2020 would be considered invalid, no matter the opinion of the auditors, with exception if the auditor’s opinion was that the financial statements were not true and fair.

Additionally, prior to release of the Annual Report, it is standard practice of good corporate governance that the BOD of Serba Dinamik to have signed all the relevant audited accounts and Annual Reports and have had the Directors' meeting to approve the Annual Report 2020.  Attempts may have been made to prevent the Directors’ meeting from happening.

Next : SC’s uphill task to successfully charge Serba Dinamik