KUALA LUMPUR – The justifications given by Tan Sri Idrus Harun to drop charges against Serba Dinamik Holdings Bhd (SDHB) are questionable and baffling, Muda vice-president Lim Wei Jiet said in scathing criticism against the attorney-general (AG).
Lim, who is a practising lawyer, said the reasons offered by the AG to not press for criminal proceedings against the integrated oil and gas engineering provider have only raised more questions and is not commensurate with the leniency shown.
In a statement yesterday, Idrus had said that the Attorney-General’s Chambers (AGC) has found that pursuing its case against SDHB and its officials would not be in the public’s best interest due to the potential economic consequences.
He said this was because the firm is now already facing winding up proceedings that would affect the livelihood of its workers, shareholders and creditors, and that the impact of the charges does not justify the severity of the offence committed.
The company and its senior executives were charged last December for submitting a false statement to Bursa Malaysia Sdn Bhd relating to the company’s record high revenue of RM6.01 billion for a 12-month period.
The charges were later dropped after the AGC accepted a letter of representation from SDHB, with the accused only required to settle a compound of RM16 million.
Lim said Idrus’ claim that criminal proceedings would have economic consequences does not make sense, as the two have little correlation.
He pointed out that SDHB’s shares were already plummeting since May 2021, from around RM1.60 to a mere RM0.35 in December, when the executives were first charged.
Lim said as such, any consequences on the company today were obviously caused by many other factors, contrary to the AG’s suggestion.
He added that even if there are “economic consequences” towards SDHB to consider, Idrus has not explained how this is more important than protecting the integrity of the capital markets in Malaysia.
“The charges against the executives are serious... When a public company provides false statements and sales figures, it could mislead thousands of investors on the financial health of the company and result in huge investment losses.
“Further, if foreign entities notice that such conduct is not dealt with seriously by the Malaysian authorities, they would lose confidence in listing themselves in the Malaysian market.”
Separately, Lim also took issue with Idrus’ remark that “acquitting SDHB would allow the company to focus on rectifying errors and effecting immediate compliance with regulations of Bursa Malaysia and the Securities Commission, as it had clearly done so in the past without fault”.
“How can the AG unequivocally say that? This in fact contradicts with his earlier suggestion that there was circumstantial evidence against SDHB and its executives insofar as the charges are concerned.
“It is one thing to say there are weaknesses in the prosecution’s case, it is quite another to dish out compliments to the accused.”
Other than SDHB, the four executives who were previously charged are CEO and group managing director Datuk Mohd Abdul Karim Abdullah, executive director Datuk Syed Nazim Syed Faisal, group chief financial officer Azhan Azmi, and accounts and finance vice-president Muhammad Hafiz Othman. – The Vibes, May 14, 2022
