SERBA Dinamik Holdings Bhd has fully settled the RM16 mil compound imposed by the Securities Commission (SC) on Monday (May 9) – or two days prior to the expiry of its two-week extension period which supposedly ended yesterday (May 11).

“Serba Dinamik is pleased to confirm that the company and its top executives have completed the full settlement of their compounds which was imposed by the SC on May 9 for the total amount of RM16,” the global integrated oil & gas (O&G) outfit pointed out in a media statement.

To re-cap, the SC had granted a fortnight extension to the company alongside its group managing director/CEO Datuk Mohd Abdul Karim Abdullah and three other top executives to settle their compound from April 28 which was the original payment deadline.

Sources had informed the Malay Mail that Serba Dinamik had first appealed for an extension which was immediately rejected by the SC. A subsequent appeal was then made by the company, citing difficulties in raising the money because their accounts had been frozen.

Following discussions with the Attorney General’s Chambers (AGC), the SC agreed to extend the deadline by another two weeks (ended May 11).

Recall that the SC had on April 13 imposed a maximum compound of RM3 mil each on Serba Dinamik, Abdul Karim and three senior officers following the acceptance of their letter of representation by the AGC.

Its vice president of accounts and finance Muhammad Hafiz Othman was compounded a further RM1 mil for falsifying the accounting records of a Serba Dinamik’s subsidiary.

The compound is in lieu of court charges meted out on the company and its four senior officers for submitting a false statement pertaining to the company’s RM6.01 bil revenue for FY2020 to Bursa Malaysia Securities Bhd on Feb 26, 2021 – an offence under section 369(a)(B) of the Capital Markets and Services Act 2007 (CMSA).

If convicted under that section, a person faces an imprisonment term not exceeding 10 years and shall also be liable to a fine not exceeding RM3 mil. The imprisonment term demonstrates the severity of such a charge.

Spike in share price

On the stock trading front, Serba Dinamik has for most part of the morning session brought cheers of delight to traders/investors who still possess faith in the counter despite naysayers continuing to belittle its revival prospect.

Even with most stockbrokerages imposing upfront settlement for its trading, the counter defied the odds to rebound 3 sen or 50% to 9 sen at the close of today’s mid-day trading as the day’s most actively traded stock with 291.08 million shares traded, thus valuing the company at RM335 mil.

“The company would also like to emphasise that operations are continuing as usual with a focus on managing its creditors and the PN17 (Practice Note 17) restructuring process,” added Serba Dinamik in its media statement. – May 12, 2022

https://focusmalaysia.my/serba-weve-settled-our-rm16-mil-compound-due-with-sc/