KUALA LUMPUR, April 12 — Serba Dinamik Holdings Bhd, the oil and gas company whose executives are facing controversy for auditing failures, acknowledged today that there is a compound offer in regard to its letter of representation to the Attorney General’s Chambers (AGC).
Business daily The Edge reported that Serba Dinamik issued a statement saying it had been advised by its solicitors that it is within the AGC’s discretion to offer a compound.
It said that pursuant to Section 373(2) of the Capital Markets and Services Act 2007 (CMSA), a compound is intended to bring an end to the proceedings.
“The company and its officers agreed to the AG’s proposed terms of settlement in how the charges were to be dealt with,” it said in the statement.
The group did not disclose any details of the terms of the settlement but it is likely that a compound would clear or reduce the charges faced by the group.
Serba Dinamik CEO Datuk Mohd Abdul Karim Abdullah, executive director Datuk Syed Nazim Syed Faisal, group chief financial officer Azhan Azmi and vice-president of accounts and finance Muhammad Hafiz Othman were reported to have been offered the compounds to either reduce or have charges against them for various offences under the CMSA.
A letter of representation is a letter to the AGC that sets out reasons why they should either not press charges, drop the charges against the accused or seek a particular sentence from the court.
As to why the AGC has not made a public statement on the matter, Serba Dinamik said the AGC must have its own issues with the evidence and charges that it found a settlement to be “a suitable resolution to the matter”.
“This was following 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.”
The group also responded to reports that the Securities Commission Malaysia (SC) and Bursa Malaysia Securities Bhd had objected to the AG’s decision.
“If indeed this is true, we view with great concern that this objection is being made public. We would presume that any such communication would have been subject to secrecy obligations and is privileged,” it said.
However, the objection is not the SC is required to seek the AG’s consent and not the other way around according to Section 373 of the CMSA.
Serba Dinamik added that the SC’s involvement of Bursa in making the objections to the AG is “improper” as matters of decisions with regard to criminal prosecution are not subject matters that Bursa should be involved in.
The company said it had been advised by its solicitors that Bursa’s involvement in making objections to the AG is improper.
“Bursa is a private commercial entity, with profit-making objectives and is not involved with the criminal justice process.
“The SC’s objection to the AG is also highly improper as it suggests an interference with the AG’s constitutional role.
“What is left to be done is for the SC to issue the compound notice. Whether or not the SC and Bursa would want to explain their involvement in the objections to the AG’s exercise of discretion is a matter that they will have to explain themselves,” it added.
Serba Dinamik was charged under Section 369(a)(B) of the CMSA involving a false statement relating to the revenue of RM6.014 billion recorded by the group in its consolidated results for the quarter and year ended December 31, 2020.
On the same day, the oil and gas giant’s executive director Datuk Syed Nazim Syed Faisal, group chief financial officer Azham Azmi, and vice-president of accounts and finance Muhammed Hafiz Othman were each charged with the same offence under Section 369(a)(B), read together with Section 367(1) of the same Act.
Its chief executive officer Datuk Mohd Abdul Karim Abdullah, after failing to appear in court on December 28, was charged with the same offence a day later. Muhammad Hafiz was also separately charged in the Shah Alam Sessions Court for alleged direct involvement in instructing the preparation of false documents relating to sales of the group’s unit Serba Dinamik Sdn Bhd.
Separately, Serba Dinamik is locked in a legal battle with Bursa after the latter filed a civil suit against the group for failing to comply with the bourse operator’s directive to release the FFU of the special independent review conducted by EY Consulting.
Under the suit, Bursa is seeking to force Serba Dinamik to reveal the review updates to the public.
https://www.malaymail.com/news/malaysia/2022/04/12/serba-dinamik-confirms-compound-offer-from-agc/2053121
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