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Malaysia's Serba Dinamik says it will take legal action against auditor KPMG

Malaysia's Serba Dinamik says it will take legal action against auditor KPMG

FILE PHOTO: The logo of KPMG is seen at the high profile startups and high tech leaders gathering, Viva Tech,in Paris, France May 16, 2019. REUTERS/Charles Platiau

KUALA LUMPUR: Malaysia's Serba Dinamik Holdings will take legal action against its auditor KPMG for negligence and breach of contract, its chairman Mohamed Ilyas Pakeer Mohamed said on Tuesday (Jun 22).

KPMG has "negligently red flagged some issues", he said at a news conference.

The company said it will be seeking punitive and aggravated damages from KPMG.

KPMG did not immediately respond to a request for comment.

In May, Serba said KPMG had not been able to verify contracts and transactions worth RM3.5 billion (US$842.97 million) with 11 customers of the oil and gas services group.

Serba rejected the concerns and has said it saw no issues with the existence or legitimacy of the contracts.

Its shares have dropped around 60 per cent since the audit issues were made public.

Source: Reuters/jt

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