THE Securities Commission (SC) has imposed a maximum compound against Serba Dinamik Holdings Bhd, its CEO, director and two company officers for submitting false financial statement to Bursa Malaysia.

The company and four individuals were compounded RM3 mil each with an additional RM1 mil compound meted on its vice president of accounts & finance Muhammad Hafiz Othman for falsifying the accounting records of the company’s subsidiary.

In a late media statement yesterday (April 13), the SC said such action was in tandem with the written consent of the public prosecutor and pursuant to its powers under Section 373(1) of the Capital Markets and Services Act 2007 (CMSA).

Muhammad Hafiz was slapped with another compound of RM1 mil – also the maximum amount permissible – for falsifying the accounting records of the company’s subsidiary Serba Dinamik Sdn Bhd, an offence under section 368(1)(b)(i) of the CMSA.

He was earlier charged for being involved in instructing the preparation of false documentations relating to the sales of Serba Dinamik Sdn Bhd.

“This follows the decision of the Public Prosecutor to accept the representation made to the Attorney-General’s Chambers (AGC) by Serba Dinamik and the individuals involved regarding the charges pending in court,” the market regulator pointed out.

“This is the maximum amount of compound permissible under Section 369(a)(B) of the CMSA 2007 for submission of false information in the company’s financial statement.”

On Monday (April 11), news reports surfaced that Serba Dinamik group managing director/CEO Datuk Dr Mohd Abdul Karim Abdullah and three other top company executives can expect offers to compound the various offences they have been charged under after the AGC accepted representations on the matter.

Serba Dinamik and the said individuals had earlier been charged for submitting a false statement to Bursa Malaysia Securities Bhd on Feb 26 last year in relation to the revenue figure of RM6.014 bil contained in “Serba Dinamik’s Quarterly Report on Consolidated Results for the Quarter and Year ended Dec 31, 2020”.

The individuals involved are Serba Dinamik chief executive officer/group managing director Dato’ Dr. Ir. Ts.

Apart from Abdul Karim and Muhammad Hafiz, the other two individuals charged for submitting false financial statement to Bursa Malaysia are executive director Datuk Syed Nazim Syed Faisal and group chief financial officer Azhan Azmi.

Serba Dinamik has this to say pertaining to the latest compound offer: “We have put in a representation letter to the AGC by detailing and explaining our arguments and the representation has been accepted by the AGC. Subsequent to that, the terms of settlement has been proposed and we are now in the midst of complying with the terms of settlement.”

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 14, 2022

https://focusmalaysia.my/rm16m-compound-is-what-serba-needs-to-pay-to-drop-court-charges/