KUALA LUMPUR, May 31 — Malaysia’s Securities Commission said it has begun an investigation into oil and gas firm Serba Dinamik Holdings Bhd after the company’s auditors flagged issues last week.
In an emailed response to Reuters on Monday, the regulator said it had secured documents and records from Serba Dinamik to assist its investigation, following the submission of the report from the company’s auditors.
Shares in the company, which were suspended following last week’s announcement its auditor had informed it of statutory audit matters, plunged 29.8 per cent as it resumed trading on Monday.
On Friday, Serba Dinamik said KPMG raised issues over more than RM3.5 billion of contracts and transactions that the auditor had not been able to verify with 11 customers.
The company said it saw no issue concerning the legitimacy and existence of the contracts and it did not expect any material impact in the financial year ending on June 30.
It said it planned to appoint an independent firm to “review the accuracy and veracity” of the issues raised.
Contacted by Reuters on Monday it had no immediate further comment. — Reuters
