AG cites 'public interest' in dropping Serba Dinamik charges
He also said the charges proffered against Serba Dinamik and its directors were disproportionate to the crime committed.
In a statement today, Idrus said a representation letter was received on March 21. In it, Serba Dinamik proposed that...
Attorney-general Idrus Harun dropped charges against Serba Dinamik Holdings Bhd and its directors because only circumstantial evidence was available and to avoid a long trial.
He also said the charges proffered against Serba Dinamik and its directors were disproportionate to the crime committed.
In a statement today, Idrus said a representation letter was received on March 21. In it, Serba Dinamik proposed that the offences be compounded.
Following this, the Attorney-General's Chambers (AGC) studied the Security Commission's investigation papers.
"Considering the said representation letter by Serba Dinamik, the AGC agreed with the proposal to compound the offences alleged to have been committed by Serba Dinamik and its executives, taking into account, amongst others, the circumstantial nature of available evidence against Serba Dinamik and the reliance on Section 367(1) of Act 671.
"Furthermore, Serba Dinamik and the said executives were willing to accept the maximum amount of compound imposable by the SC.
"In light of the evidence in support of the charges and to avoid a long and protracted trial, the AGC is of the view that public interest would be better served by compounding the offences allegedly committed by Serba Dinamik and its executives.
"By compounding the offences, the need for punitive action against Serba Dinamik is immediately achieved without going through a lengthy trial," said Idrus.
On Dec 28 last year, the Securities Commission filed charges against Serba Dinamik’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.
Idrus was also of the view that criminal proceedings against Serba Dinamik should not be pursued due to the "economic consequences" of doing so.
"As of the date of this press release, Serba Dinamik is facing winding-up petitions from creditors, which jeopardise the livelihood of Serba Dinamik's employees and the interest of shareholders and other creditors.
"In these circumstances, the AGC finds that compounding the offences is an adequate form of punishment for the alleged offences.
"This would then allow Serba Dinamik to focus on rectifying errors and effecting immediate compliance with regulations of Bursa Malaysia and the SC, as Serba Dinamik had clearly done so in the past without fault," said Idrus.
As of May 9, Serba Dinamik and its directors had paid RM16 million in compounds, according to Idrus.
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