KUALA LUMPUR: Sarawak Consolidated Industries Bhd (SCIB), which was publicly reprimanded last Friday for a delay in its 2021 annual report, today said the breaches were made under two former board members, and the new board of the company marks a new era of corporate governance.

"We at SCIB take our responsibility for corporate compliance and governance very seriously. The recent challenges have been a learning opportunity, leading to stronger internal controls and audit processes. Our new board members have been instrumental in this turnaround, ensuring that SCIB not only adheres to but exceeds the standards expected by our regulators and stakeholders," SCIB managing director Ku Chong Hong said in a statement today.

SCIB was publicly reprimanded on December 1, for failing to issue the audited financial statements together with the auditors' and directors' report for the 18-months financial period ended June 30, 2021, on or before Oct 31, 2021. SCIB only issued the 2021 annual report on Jan 17, 2022, after a two-month delay.

Its non-executive chairman Datuk Mohd Abdul Karim Abdullah and group managing director and chief executive officer Rosland Othman at the time, were also fined RM28,000 each for permitting the company to commit the breach.

Both have since left the board of the company.

In  the statement, SCIB said the late submission of SCIB's 2021 annual report, was primarily due to complexities in auditing overseas construction contracts, highlighted areas for improvement in our financial reporting processes.

"This was further complicated by the untimely resignation of our external auditors. SCIB has since taken significant measures to ensure such delays and challenges do not recur."

"This includes the timely publication of our FY2023 annual report on Oct 31, 2023, demonstrating our renewed commitment to timely and transparent financial disclosures", the company said in the statement.

KPMG Ltd resigned as its external auditors on July 23, 2021.

SCIB said the company is now poised to build upon the company's recent successes, including achieving profitability in FY2024 Q1, backed by a board and management team dedicated to upholding the highest standards of professionalism and integrity.

https://www.nst.com.my/business/corporate/2023/12/986397/publicly-reprimanded-scib-says-new-board-means-new-era-corporate