M'sian Bar: AG must explain why Serba Dinamik let off the hook
The Malaysian Bar has demanded that the Attorney-General’s Chambers (AGC) explain why charges against Serba Dinamik Bhd’s top officials were withdrawn.
In a statement, the Malaysian Bar was concerned with the lack of transparency in this matter which has an impact on the integrity of the capital market's governance and regulatory framework.
“The Malaysian Bar, therefore...
The Malaysian Bar has demanded that the Attorney-General’s Chambers (AGC) explain why charges against Serba Dinamik Bhd’s top officials were withdrawn.
In a statement, the Malaysian Bar was concerned with the lack of transparency in this matter which has an impact on the integrity of the capital market's governance and regulatory framework.
“The Malaysian Bar, therefore, implores the AGC to make a full and frank disclosure on the reason, if any, for the issuance of compounds to Serba Dinamik and the accused individuals, instead of proceeding with prosecution.
“The AGC should engage in a purposeful consultation process with the regulators to ensure the proper penalties are enforced.
“The old adage rings true now more than ever - ‘Justice must not only be done but must be seen to be done’,” said Mohamad Ezri Abdul Wahab, vice-president of the Malaysian Bar.
Ezri said while the Malaysian Bar was mindful of the powers granted to the attorney-general under Article 145(3) of the Federal Constitution, such powers must be exercised in a way that would promote and strengthen the rule of law.
“With due respect, the AGC should refrain from making a decision that overrides the recommendations made by the regulator - in this case, the SC - as this could potentially erode the function as well as the public perception vested in the regulator,” he said.
On Dec 28 last year, the Securities Commission filed charges against Serba Dinamk’s executive director Syed Nazim Syed Faisal, group chief financial officer Azhan Azmi, vice-president of accounts and finance Muhammad Hafiz Othman and independent non-executive director Abu Bakar Uzir.
Serba Dinamik's CEO Mohd Abdul Karim Abdullah was charged in absentia.
They were accused of being responsible for the false statement contained in Serba Dinamik's Quarterly Report on Consolidated Results for the Quarter and Year ended Dec 31, 2020.
Under Section 369(a)(B) of the Capital Markets And Services Act 2007, offenders could be handed a jail term not exceeding 10 years and a maximum fine of RM3 million.
However, on April 13, the charges were withdrawn after the public prosecutor accepted the representation made to the AGC. A representation letter is typically sent to reduce a charge or have the charges dropped.
Instead, Karim, Syed Nazim, Azhan and Hafiz were all fined RM3 million each. Hafiz was slapped with another RM1 million fine for falsifying the accounts of a Serba Dinamik subsidiary.
