SC lodges police report against Serba Dinamik

SHAH ALAM - The Securities Commission Malaysia (SC) strongly refutes allegations made by Serba Dinamik Holdings Berhad (Serba Dinamik), stating that the latter for "acting in bad faith" and had not followed procedures in discharging duties.

In a statement released today, SC denounced any attempts to intimidate and undermine SC or its officers' authority and credibility.

The SC confirmed it lodged a report yesterday against an announcement issued by Serba Dinamik on April 21, which contained statements that were “baseless and malicious” and may have the effect of misleading or confusing members of the public and paint a negative image of SC and its officers.

Serba Dinamik and four of its board members and senior management were earlier charged for offences under securities laws in December of last year for providing a false statement to Bursa Malaysia Securities Bhd in relation to Serba Dinamik’s revenue figure of RM6.01 billion contained in its consolidated results for the quarter and year ended in 2020 (Dec 31).

The Attorney-General's Chambers had on April 7 agreed for all the charges to be compounded.

The statutory body also noted that the bulk of the allegations made by Serba Dinamik against them were issues and arguments put forward by Serba Dinamik in various High Court proceedings filed by Serba Dinamik, which have since been dismissed by the High Court.

SC shared that investigations regarding this matter were conducted in accordance with its statutory powers and established processes and procedures.

It first denied that it failed to hand over any documents and stated that they were provided to Serba Dinamik pursuant to Section 51A of the Criminal Procedure Code (CPC).

The documents were sent in separate batches to the Defence on three dates: Jan 27, Feb 25, and April 8.

SC also clarified that pursuant to Sections 128 and 133 of the Securities Commission Malaysia Act 1993 (SCMA), the body is empowered to enter any premises without a search warrant if it has reasonable grounds to believe that the delay in obtaining a search warrant may cause any documents or evidence to be interfered with or destroyed or the object of the entry may be frustrated.

Besides that, SC also stated that its Investigating Officers, Prosecuting Officers and Deputy Public Prosecutors had not at any time threatened any staff of Serba Dinamik, and that statements recorded from these witnesses were conducted according to due process and were made to SC voluntarily without any inducement, threat or promise.

The statement was a response to a High Court order compelling Serba Dinamik to divulge the factual findings update (FFU) prepared by Ernst & Young Consulting (EYC), following a special independent review on the company over audit issues raised by its external auditor, KPMG.

In the letter dated Feb 7, Serba Dinamik questioned SC’s motive in pressing charges against the company over an alleged false RM6.01 billion revenue figure.