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Serba Dinamik shareholder PNB has 'deep concern' after audit issues raised

KUALA LUMPUR -Malaysian state-linked fund management company Permodalan Nasional Bhd (PNB) has expressed "deep concern" about the issues at Serba Dinamik Holdings Bhd , which is facing an investigation over unverified contracts.

Oil and gas services firm Serba said last week that its auditor KPMG had not been able to verify contracts and transactions totalling 3.5 billion ringgit (US$850 million) with 11 customers, prompting an investigation by Malaysia's Securities Commission.

Serba said there are no issues with the contracts and plans to appoint an independent firm to review the issues. On Friday Serba's second-largest shareholder proposed removing KPMG as auditor.

In a statement emailed to Reuters on Wednesday, PNB, Serba's fifth-largest shareholder, said it told the company board of its concerns and that it does not believe there is merit in removing the appointed auditors before finishing the annual audit.

PNB said it reserves its right to vote against any resolution to replace the current auditors.

Abdul Kadier Sahib, a non-independent non-executive director at Serba with the second-largest holdings after Chief Executive Abdul Karim Abdullah, issued a notice on Friday to convene an extraordinary general meeting to propose the removal of KPMG and hire BDO in replacement for the audit on the financial year ending June 30.

Abdul Kadier was listed as one of Malaysia's top 50 richest people in 2020, according to Forbes.

(US$1 = 4.1240 ringgit)

(Reporting by Liz Lee; Editing by Tom Hogue and Christian Schmollinger)

Source: Reuters

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