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“Investors, beware!”: Idrus panned for setting bad precedence over Serba Dinamik case

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Publish date: Sat, 14 May 2022, 02:51 PM

YESTERDAY, Attorney General Tan Sri Idrus Harun buckled under public pressure and provided an explanation on why he decided to only slap a fine on several executives from Serba Dinamik Holdings Bhd for allegedly breaching Capital Markets and Services Act (CMSA) 2007.

In his defence, Idrus stated that in light of the evidence in support of the charges and to avoid a long and protracted trial, the Attorney General Chambers of Malaysia (AGC) upheld the view that “public interest” would be better served by compounding the offences allegedly committed by Serba Dinamik and its executives.

“By compounding the offences, the need for punitive action against Serba Dinamik is immediately achieved without going through a lengthy trial. 

“Thereafter, Serba Dinamik can re-direct resources and time to coordinate with the authorities to comply with the requirements of the law,” he was reported as saying.

However, netizens were unimpressed with the AG’s explanation and took to social media to berate the top public prosecutor. 

“Shocking. These execs are charged for very serious offences ie. providing false statements & sales figures to Bursa. 10 years jail if convicted.

“What message is being sent? If you’re rich, it’s okay to commit crime? Because you can afford to pay the compound? AG must explain,” said lawyer cum activist Lim Wei Jiet.

Echoing Lim’s sentiments, user Prakash added:

Netizen islander retorted: “Lawlessness in Malaysia. Foreign investors better watch out!”

On Dec 28 last year, the Securities Commission (SC) filed charges against Serba Dinamik’s executive director Syed Nazim Syed Faisal, group chief financial officer Azhan Azmi, vice-president of accounts and finance Muhammad Hafiz Othman and independent non-executive director Abu Bakar Uzir.

Serba Dinamik’s CEO Mohd Abdul Karim Abdullah was also charged, albeit in absentia.

They were claimed to have been responsible for providing false statement contained in Serba Dinamik’s Quarterly Report on Consolidated Results for the Quarter and Year ended Dec 31, 2020.

Under Section 369(a)(B) of CMSA, offenders could be handed a jail term not exceeding 10 years and a maximum fine of RM3 mil, or both.

It is to note that SC chairman Datuk Syed Zaid Syed Jaafar Albar and several other officials quit the regulatory body recently.

While they did not mention reasons for the early departure, it coincided with Idrus’ decision to withdraw prosecution against Serba Dinamik’s executives.

Rule of law or rule of AG?

On that note, user Malaysian said that it was imperative for the AGC to charge someone in court, if the alleged criminal act warrants it or risk lawlessness.

Netizen Kijang Mas replied: “AG didn’t want to go for lengthy court trial. So, he accepted SD to be compounded.

“But he didn’t realise that this act will be a precedent to others who will use this to manipulate their financial numbers to jack up share price. If caught they just pay compounded fines. Stupid!”- May 14, 2022

 
 
 

https://focusmalaysia.my/investors-beware-idrus-panned-for-setting-bad-precedence-over-serba-dinamik-case/

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1 person likes this. Showing 4 of 4 comments

DickyMe

Can the public bring AG to court for misuse of discretion?

1 week ago

gohkimhock

It is very obvious, the AG did not follow the rule of law here. He did not go for the maximum penalty even though it was recommended by the regulators (SC).

1 week ago

sensonic

I AM SO HAPPY OUR MARKET PERFORM BETTER THAN EXPECTED. SO HAPPY FOR ALL MARKET PARTICIPANTS.

1 week ago

nuke

If I'm right, PNB holds a significant stake in SD, probably through ASN and ASB. Probably other local funds do too.

1 week ago

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