PETALING JAYA: Two months ago, an auditing dispute which has since gone to court rocked Serba Dinamik, but the oil and gas services company weathered the storm and is now looking to finish 2021 on a high.
Malaysia’s third-largest oil and gas services company saw its fortunes take a tumble after it locked horns with former auditor KPMG over discrepancies that SD says it has already addressed.
Now, company CEO Mohd Abdul Karim Abdullah says the company is “well and back on track”, with its suit against KPMG running parallel to efforts to restore the confidence of its stakeholders.
In an interview with FMT, Karim said the company’s quick action to bring three new independent directors on board to review the audit issues in mid-June was key in addressing the matter.
“We reviewed their findings and we agreed that KPMG’s actions were unjustified, hence the lawsuit. As you know some did not agree with the move and resigned.
“But we stand by our decision to take KPMG to court.”
Since then, Karim said, Serba Dinamik had brought in two more independent directors in former Special Branch director Mohamed Farid Abu Hassan and former head of corporate risk management at Bursa Siti Zaleha Sulaiman.
“These are two people who have had distinguished careers, they are people known for their integrity, knowledge and experience. We believe they will contribute greatly to Serba Dinamik as we move forward,” he said.
Karim said the company has also appointed Ernst & Young (EY), one of the “big four” auditing firms, to perform a special independent review of the issues raised by KPMG.
He also disputed claims that Bursa had forced them to appoint EY, saying the company had always wanted to appoint EY.
“Initially, EY declined because KPMG refused to give them access to their audit findings, but we managed to get Bursa’s assistance to resolve the matter,” he said.
More recently, Karim said, Serba Dinamik appointed Nexia SSY PLT to replace KPMG as the company’s new external auditor.
“We don’t have anything to hide, that’s why we’ve been so quick to bring in another auditor to look over our accounts. We just want to move past this and get back to business.
“We are in close contact with our clients and banks, updating them on what we’re doing and reassuring them that all is okay. The ship is steady and we are moving forward.
*Investors appear to be taking notice, too, with the company’s share price slowly beginning to recover after taking a hit in late June* - FMT
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