Muda wants finance minister to explain SC resignations

Finance Minister Tengku Zafrul Abdul Aziz has been urged to explain a slew of resignations among the Securities Commission (SC)’s top officials.

Muda central executive member Lim Wei Jiet in a statement today raised concern about the resignations of SC executive chairperson Syed Zaid Syed Jaffar Albar and three others.

He said these coincided with a recent decision by the Attorney-General's Chambers (AGC) to withdraw charges against a troubled oil and gas services company, Serba Dinamik Holdings Sdn Bhd.

"These exits come a few days after the Attorney-General’s Chambers’ decision to withdraw criminal charges against the four Serba Dinamik executives for filing false financial statements to the SC, in exchange for a mere compound of RM3 million each.

"The maximum penalty for such charges is 10 years in jail and a fine of up to RM3 million.

"One cannot fault members of the public for drawing a correlation between these high-profile exits and the withdrawal of charges against Serba Dinamik executives.

"The government, specifically the finance minister, must explain in detail why these officials have chosen to resign at the same time, and whether it has any correlation with the Serba Dinamik saga," said Lim (above), who is also a lawyer.

Malaysiakini has contacted an aide of Zafrul to request his comment but has yet to receive a response.

The SC yesterday announced the resignation of Syed Zaid, and that he will be replaced by Awang Adek Hussin beginning this June 1.

The resignation came just six months after Syed Zaid was reappointed as the SC executive chairperson for a second three-year term.

A report by The Edge yesterday linked Syed Zaid’s resignation to the AGC’s decision to withdraw charges against Serba Dinamik.

Executives of the company were accused of filing false financial statements to the stock exchange in what was described as the largest corporate fraud by a Bursa-listed company.

Today, the media outlet reported that three SC directors are also quitting the commission for unknown reasons.

Lim said the country's economy can be negatively affected if the SC's integrity is brought into question.

"Did these officials resign because they were dissatisfied with how the authorities have dealt with the Serba Dinamik executives?

"Transparency and accountability on this issue are crucial because the SC is one of the only few reputably independent government institutions left in the country, and plays a vital role in ensuring confidence towards Malaysia’s capital markets.

"If there is an inadequate explanation and the SC’s integrity is brought to question as a result, it would be economically disastrous for the nation in the long run," Lim added. - Mkini