SC's Response to The Edge on Serba Dinamik Investigation

11 November 2021

As the capital market regulator, the Securities Commission Malaysia (SC) is empowered under securities laws to investigate and enforce any transgression or potential transgression of securities laws, SC guidelines and rules of the stock exchange.
While the SC does not usually comment or issue statements on its investigation, this statement is made in view of recent developments surrounding legal suits by Serba Dinamik Holding Berhad against its statutory auditors KPMG; EY Consulting, the independent reviewer appointed by Serba Dinamik to conduct the special independent review (SIR); and Bursa Malaysia, the frontline regulator empowered under securities laws with the responsibility to monitor and take enforcement action against market misconduct and protect investors.

The SC conducted a raid on 18 May 2021 to secure documents and relevant evidence from several Serba Dinamik offices following a section 320 Capital Markets and Services Act 2007 (CMSA) notice issued to the SC by KPMG.

In the course of its investigation, the SC received and granted a request from EY to have access to documents and evidence seized by the SC during the raid as EY was having difficulties obtaining complete documentation from Serba Dinamik on several aspects of its review. The SC subsequently issued a section 152 Securities Commission Malaysia Act 1993 (SCMA) notice to require EY to disclose its SIR findings for the SC’s review.

The SC has made progress on its investigation and additional resources have been added to the team to ensure the investigation is completed in a timely manner. The SC will evaluate all available evidence and take any appropriate action as is deemed necessary. As investigation is ongoing, the SC is not able to comment further on this.

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