SERBA Dinamik Holdings Bhd has expressed concern that market regulators Securities Commission (SC) and Bursa Malaysia Securities Bhd has made public their objection to the Attorney General’s (AG) acceptance of its representation letter.

The global integrated oil & gas (O&G) service provider said it would presume that any such communication would have been subject to secrecy obligations and is privileged.

“Further, the company has been advised by its solicitors that Bursa’s involvement in making objections to the AG is improper,” Serba Dinamik pointed out in a media statement. “Bursa is a private commercial entity with profit-making objectives and is not involved with the criminal justice process.”

In the same light, the company also disputed the SC’s objection as improper on ground that “matters of decision with regard to criminal prosecution is not a subject matter that Bursa should be involved in”.

“SC’s objections to the AG is also highly improper as it suggests an interference with the AG’s constitutional role,” added Serba Dinamik.

Upon receiving the representation from the company, the AG Chambers must surely have recognised the issues with the evidence and charges, and proposed a settlement that would be a suitable resolution to the matter, according to Serba Dinamik.

“This follows consideration of the strength of the evidence to support the charges that were laid, the resources required in multiple courts to pursue all charges, the public interest, and likelihood of success,” contended the company.

With regards to the offer of a compound, Serba Dinamik has been advised by its solicitors that it is within the AG’s discretion.

A compound offer is preceded by a charge and not the other way round. Section 373 of the Capital Markets and Services Act 2007 (CMSA) requires the SC to seek the AG’s consent and not the other way round.

Henceforth, the company said a report by The Edge entitled “Will Serba Dinamik’s top execs be let off with just a compound for providing false reports to SC?” yesterday (April 11) appears to be suggesting is that the AG should explain an apparent change of mind.

“The company’s solicitors had advised the company that the suggestion by The Edge is an attempt at scandalising the system of administration of justice,” Serba Dinamik pointed out.

“Under Section 373(2) of the CMSA, a compound is intended to bring an end to proceedings. The objections by the SC and Bursa, if true, would suggest that the SC and Bursa do not want to bring an end to proceedings and no further proceedings should be brought.”

Moreover, Serba Dinamik is wary that the report also suggests that the SC would bring proceedings to bar the individuals charged from being directors of the company. If such a step were to be taken, the company said this will be detrimental to its interest, its creditors and its shareholders.

“The company has to take steps to address as a matter of priority the repayment of amounts owing to lenders and trade creditors, and in tandem with that, the interests of its shareholders will also have to be preserved,” noted Serba Dinamik..

“What is reported by the media of the SC’s alleged intended actions of disqualifying its management personnel coupled with the alleged objections by the SC and Bursa to the AG’s decision gives rise to the inference that there is a significant motivation to cripple the business of the company.”

As it is, considerable damage and harm have already been inflicted on the company, its creditors and shareholders, according to the company.

“What is left to be done is for the SC to issue the compound notices. Whether or not the SC and Bursa would want to explain their involvement in objecting to the AG’s exercise of discretion is a matter that they will have to consider and explain,” added Serba Dinamik.

The global integrated oil & gas (O&G) outfit was last transacted at 35 sen at the close of the mid-day trading on Oct 22 last year prior to the trading suspension of its shares/warrants, hence giving the company a market capitalisation of RM1.3 bil. – April 12, 2022

https://focusmalaysia.my/sc-bursa-shouldnt-publicly-object-to-ags-acceptance-of-serbas-representation-letter/