Malaysian oil and gas service group are under investigation by Malaysia’s security group. This also rose concerns on the company’s development by 2 of the top five shareholders in Serba Dinamik Holdings. According to Serba last week, the company’s auditor KPMG had not been able to verify contracts and transactions worth 3.5 billion ringgits with 11 customers.
While the auditor’s concerning issues about the contracts Serba rejected all of them and said there were no issues with the contract. While the investigation has been opened by the country’s securities management. Serba has planned to appoint an independent firm to review the contract’s issues. Thus the decisions would be unbiased.
According to Refinitiv data, Permoladan Nasional Bhd (PNB) and the Employees Provident Fund (EPF) are the top fifth and third-biggest shareholders of Serba respectively. PNB is Malaysia’s largest fund manager. They said in a recent emailed statement to Uters. That,” PNB has informed the Serba Dinamik board of directors of the firm’s deep concern about recent developments”.
PNB has also made some more statements regarding this. They said that there was no goodness in removing the appointed auditor before the annual audit was finished. They also said that it should reserve its right to vote against any resolution to appoint the current auditor.
When the audit issues first came to light. Serba’s second-largest shareholder proposed to remove KPMG as the auditor. Although this Wednesday Serba confirmed in a statement, that the shareholder has now withdrawn the proposal.
EPF has also said that the companies it invests in should ensure the highest level of transparency and corporate governance. KPMG the company’s auditor does not reveal much in public comments as it told Reuters. That it has been in continuous communication with Serba Dinamik but did not comment further. Because of the ongoing citing investigations and it could affect some of the client’s confidentiality.
All these investigations going on has affected the shares of Serba Dinamik. As they have lost almost 49 per cent of their share value so far this week. Which is almost half the value before all this. Their shares closed at 1.2 per cent this Wednesday with the third day of continuous huge losses.
