Serba Dinamik Holding Berhad's board of directors has agreed in principle, to appoint Ernst & Young Advisory Services Sdn Bhd as the independent reviewer.

In a statement to Bursa Malaysia on Monday, it said EY will assess veracity and accuracy of the matters highlighted by the external auditors, KPMG PLT.

“An updated announcement will be made upon the finalisation of terms and conditions of the said appointment, ” it said.

Meanwhile, Serba Dinamik announced several independent directors. They are Masleena Zaid, Datuk Mohamed Ilyas Pakeer Mohamed and Johan Mohamed Ishak.

Masleena Zaid is managing partner at Messrs Masleena, Yee & Partners from July 2010 to present.

She is a director at De Apex Force Security & Consultancy Sdn Bhd from March 2011 to present.

Mohamed Ilyas held various positions in Mercedez Benz and Cycle & Carriage prior to BMW – Cartrade where he was the CEO. He was executive chairman of VW Cars and also of Koperasi Amanah Pelaburan Bhd. He was chairman, Hartanah AP Rakyat Bhd.

Johan is managing director, Awesome Media Network Sdn Bhd since 2020. He was the CEO of Media Prima Bhd from 2017 to 2020.

In late May, Serba Dinamik said that its auditor KPMG had not been able to verify contracts and transactions totalling RM3.5bil with 11 customers.

Serba Dinamik rejected the auditor’s concerns and said there were no issues with the contracts. It plans to appoint an independent firm to review the issues, while the country’s securities regulator has opened an investigation.

In early June, the independent non-executive directors expressed concerns about the current situation relating to the audit issues flagged by the external auditor. They said they shared the concerns along with the board of directors, the management, the shareholders and stakeholders.