Silence is not an option in Serba Dinamik case - Gobind

 

Pressure is mounting on Attorney-General Idrus Harun to explain his decision to drop criminal charges against public listed oil and gas company Serba Dinamik Bhd's top executives.

In a statement today, DAP deputy chairperson Gobind Singh Deo stressed that silence is no longer an option for Idrus.

"The matter has generated a public debate and caused concerns amongst corporate and capital market players, all of whom expect regulatory bodies to play their roles effectively to ensure the credibility of corporate governance and capital market development in Malaysia.

"Silence is not an option for the Attorney-General. As a public prosecutor, he must speak up, respond to and address the concerns raised.

"He must explain why he consented to the matter being resolved by way of a compound and how that, on the facts of this case, inspires confidence," said the Puchong MP.

Gobind noted that the Capital Markets and Services Act 2007 allows the Security Commission chairperson to compound an offence under a certain provision of the act with the consent of the public prosecutor.

"However, the question is whether there should be transparency in the exercise of that power. It also raises the question of accountability, which can only be assessed if there is an explanation, to begin with," he said.

On Dec 28 last year, the Securities Commission filed charges against Serba Dinamk’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 chief executive officer, Mohd Abdul Karim Abdullah, was charged in absentia.

They were accused of being responsible for the 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 the Capital Markets And Services Act 2007, offenders could be handed a jail term not exceeding 10 years and a maximum fine of RM3 million.

However, on April 13, the charges were withdrawn after the public prosecutor accepted the representation made to the Attorney-General’s Chambers.

A representation letter is typically sent to reduce a charge or have the charges dropped.

Instead, Karim, Syed Nazim, Azhan and Hafiz were all fined RM3 million each. Hafiz was slapped with another RM1 million fine for falsifying the accounts of a Serba Dinamik subsidiary. - Mkini