Will KPMG Do Another Financial Settlement With Serba Dinamik?

By Depakatalah

The Financial Reporting Council (FRC) said KPMG and David Costley-Wood, a partner at the firm, used an “untruthful defence” in an investigation into the sale of Silentnight to a private equity firm in 2011.

A tribunal previously found KPMG had an “obvious conflict of interest” as it advised Silentnight and the US private equity firm HIG. Silentnight was placed into administration in 2011, allowing HIG to buy the company without the burden of a large pension scheme.

KPMG has been fined a near-record £13m and severely reprimanded by an independent tribunal for misconduct and Costley-Wood, who was formerly head of KPMG’s Manchester restructuring division, was also fined £500,000 and barred from insolvency or accountancy licences for 13 years.This KPMG news was happened in United Kingdom reported by The Guardians on October 14, 2021. Back in Malaysia, KPMG is still having to face legal action from Serba Dinamik Holdings Berhad (Serba Dinamik) for substantial damages for alleged negligence and breaching contractual and statutory duties.

Despite  the tumultous month of June which saw some RM4.0 billion market capitalisation wiped out from Serba Dinamik, the lines for the legal duel between Serba Dinamik versus its former external auditor, KPMG, Serba Dinamik has stayed focus on their business and remedying the situation. 

Serba Dinamik is in “business as usual” mode with all operations put on close monitoring for compliance to the environmental, social and governance (ESG) framework.For the second quarter 2021, Serba Dinamik posted a revenue of RM1.2 billionwith the bulk coming from operations and maintainance activities abroad. Serba Dinamik was also saw an increase in its share price following a restructuring exercise that has been taking place in the group.

For the past month, Serba Dinamik’s share price has increased four sen or 9.46% to close at 40 sen on October 13, 2021 from 37 sen on September 13, 2021. Its value on the market also rose by RM1.5 million to RM1.49 billion on the same date from RM1.34 billion a month prior.KPMG got swayed in their many audit failures local and abroad. We are not surprised if KMPG will be doing another financial settlement for audit negligence after the RM333 settlement for audit failure at 1MDB, as predicted by our fellow blogger, Another Brick On The Wall.

Tidur satu bantal, mimpi pun sama

oleh Qdees

Enggang sama enggang, pipit sama pipit. Perumpaan ini tepat sekali menggambarkan sikap akhbar The Star dan The Edge dalam melaporkan keputusan kewangan sukuan Serba Dinamik semalam.

Baca di bawah:

https://www.thestar.com.my/business/business-news/2021/09/29/serba-dinamik-quarterly-net-profit-slumps-to-lowest-since-ipo

https://www.theedgemarkets.com/article/serba-dinamik-posts-lowest-quarterly-earnings-listing

Kedua-keduanya mempunyai tajuk berita hampir sama, seolah-olah mereka tidur sebantal dan  sama-sama bermimpi didatangi lembaga halus yang mencadangkan tajuk itu kepada mereka.

Dalam memproses keputusan kewangan sesebuah syarikat jarang sekali, wartawan membandingkan prestasi terkini dengan prestasi ketika IPO, lebih-lebih lagi jika IPO itu telah berlalu empat tahun lalu.

Dalam keadaan biasa, wartawan sentiasa peka apabila membuat perbandingan, mereka perlu banding “epal dengan epal.”

Ini adalah kerana mereka menyedari  persekitaran ekonomi dan dinamik pasaran mungkin mengikut kitaran “musim”, iaitu prestasi perniagaan awal tahun mungkin berbeza dengan hujung tahun dan sebagainya.

Sebab itu jarang sekali wartawan membandingkan prestasi sukuan dengan sukuan sebelumnya, sebaliknya membandingkan prestasi dengan tempoh yang sama tahun sebelumnya – satu amalan yang turut dipakai oleh penganalisis pasaran.

Berikutan itu apabila kedua-dua akhbar bahasa Inggeris itu memilih untuk menyimpang daripada amalan biasa ini, ia menimbulkan tanda-tanya mengenai tindak-tanduk mereka.

Apakah mereka budak baru dan tak biasa memproses laporan kewangan atau didorong pihak tertentu?

Apa sekalipun, mereka tidak harus mempunyai motif selain daripada melaporkan sejujurnya.

Jika mereka menulis ikut telunjuk orang tertentu, takdalah beza wartawan di kedua-kedua akhbar ini dengan mereka yang membuat komen tanpa mendedahkan nama di banyak “chatroom” pasaran saham yang bertaburan di dunia siber.

Wartawan harus menyedari bahawa mereka sentiasa dipantau. Kalau dilihat memihak dan bertindak untuk kepentingan pihak tertentu, lambat laun pembaca akan lari.

Bagi wartawan kewangan (financial journalists) pula perlu diingatkan bukan hanya pembaca tetapi regulator juga turut memantau tulisan mereka di bawah seksyen 87 (1) (2) CMSA.

Untuk pengetahuan pembaca, Serba Dinamik semalam melaporkan  keuntungan bersih sebanyak RM14.92 juta bagi suku yang berakhir 30 Jun, 2021 manakala perolehan berjumlah RM1.21 bilion bagi tempoh sama.

Memetik laporan bernama, Prestasi itu didorong terutama oleh aktiviti rancak daripada operasi dan penyenggaraan (O&M) di rantau Timur Tengah dan Malaysia, yang menyumbang RM1.1 bilion atau 90.6 peratus kepada jumlah perolehan, menurut syarikat itu dalam kenyataan pada Rabu.

Ia menambah, segmen kejuruteraan, pemerolehan, pembinaan dan pentauliahan (EPCC) merupakan penyumbang kedua terbesar kepada perolehan dengan RM100.4 juta atau 8.3 peratus kepada jumlah perolehan.

Segmen teknologi maklumat dan komunikasi (CT) pula memberikan sumbangan sebanyak RM11.8 juta atau 1.0 peratus kepada jumlah perolehan pada tempoh suku yang dinilai, menurutnya.

12MP: Serba Dinamik ready for aerospace industry challenge

NST Business

KUALA LUMPUR: Serba Dinamik Holdings Bhd is hopeful that the elevation of the aerospace industry as one of the strategic industries under the 12th Malaysia Plan (12MP) will benefit its aerospace division parked under wholly-owned Serba Dinamik Group Bhd (SDGB).

SDGB was not a new player in the aerospace segment, according to Serba Dinamik, adding that it had a strong objective and vision on how to lift the industry to greater heights.

“Serba Dinamik is always forward looking and will support Malaysia’s inspiration to develop aerospace business which could propel economic growth and generate high skilled worker,” its group managing director and chief executive officer Datuk Mohd Abdul Karim Abdullah said.

“More broadly, Serba Dinamik could leverage its expertise to facilitate the government’s efforts to realise the Fourth Industrial Revolution by attracting more foreign investments to the Malaysian shores.”

A 12MP document released by the Economic Planning Unit on Monday shows that the aerospace industry was among strategic industries to propel Malaysia into the high technology trajectory, generating RM30 billion revenue by 2025 from RM11.6 billion in 2020.

Under the 12MP, the government envisaged that the industry would create 30,000 jobs over the next five years and undergo transformation to produce more complex products and services.

SDBG, currently in compliance with the AS9100 certification (a widely adopted and standardised quality management system for the aerospace industry), aspires to become a prominent aerospace industry player in Malaysia by specialising in areas such as machining, assembly and special process for aerostructure and aero engine.

This is by way of further acquiring extensive international certification such as NADCAP (National Aerospace and Defense Contractors Accreditation Programme), Customer Approval, DPD/MBD (Digital Product Definition/ Model Based Definition) and AMO (Accredited Management Organisation).

“Our focus is MRO (maintenance, repair and operations) and manufacturing of metallic component by machining as well as solid engineering capabilities to develop manufacturing processes and tooling required, and concurrent engineering to support our clients in programmes at manufacturing phases,” Abdul Karim said.

Cari penyelesaian untuk gerak ke hadapan

oleh Qdees

Siapa tak pernah lawan tenung mata zaman kecik-kecik dulu. Peraturannya senang saja – siapa kelip mata dulu dia kalah.
Menyeronokan tapi apabila membabitkan percaturan korporat, terkelip dulu membawa padah.

Begitulah agaknya pertimbangan yang diambil kira oleh Kementerian Kewangan dan KPMG baru-baru ini apabila bersetuju kepada penyelesaian luar mahkamah kes saman kerajaan ke atas firma audit itu.

Dalam penyelesaian itu KPMG setuju membayar RM333 juta kepada kerajaan Malaysia dan sebagai pembalasan tuntutan US$5.64 bilion kerajaan terhadapnya berhubung kes 1MDB dianggap selesai.

Walaupun tidak sempurna, kaedah itu membolehkan kedua-dua pihak “move forward” atau apa yang orang Melayu kata “ambil yang jernih, buang yang keruh.”

Kerajaan puas hati dapat wang untuk membayar sebahagian komitmen hutang 1MDB yang diseleweng pihak tertentu, manakala KPMG dapat terus berurusan seperti biasa dengan entiti kerajaan.

Penyelesaian seperti ini bukan luar biasa dalam dunia korporat. Kebanyakan mereka yang terbabit dalam dunia korporat adalah pragmatis.

Mereka melihat kepada kelangsungan perniagaan lebih daripada menjaga “air muka” semata-semata.

Dalam banyak kes, sesuatu pertikaian itu elok diselesaikan secara rundingan daripada dibawa ke mahkamah.

Rundingan tidak bermakna sesuatu isu itu disapu ke bawah permaidani. Ia harus diselesaikan dan sebarang ketidakpatuhan jika ada, perlu dibetulkan supaya ia tidak berulang.

Ini penting kerana “public trust” harus dipertahankan.
Begitulah harapan penyelesaiannya jika sesuatu pertikaian membabitkan syarikat senaraian awam.

Lebih-lebih lagi jika syarikat itu menjadi tempat mencari rezeki ribuan pekerja tempatan, selain antara pemegang sahamnya ialah institusi yang menjaga kepentingan rakyat seperti KWSP, KWAP, PNB dan sebagainya.

Apa yang mahu dielak ialah situasi “kalah jadi abu, menang jadi arang.” Takda siapa yang untung, malah ramai yang akan ditimpa padah.

What Serba Dinamik’s Chairman Said KPMG Is Shoplot Auditors And Official Gangster Come To Reality

by depakatalah

Once upon a time, Serba Dinamik’s Chairman Datuk Mohamed Ilyas Pakeer Mohamed said that, watch here,

KPMG can be a big firm, but the standard of accounting […] or auditing that they do is just like a shoplot auditor. I [was] surprised myself when I went in to see this problem and substandard sort of auditing.

They even mentioned that […] they are going to stop the auditing. How can you work with auditors when you pay them a few hundred thousand ringgit, and they are dictating what to do?”

They should be working with us and not taking our money and behaving like this. They are behaving like gangsters. Official gangsters. They don’t deserve to be auditors.

At that particular time, many observers were not agreed with the Chairman’s statement. Now, after 3 months this statement was made, the truth prevail. One after the another, case by case, KPMG was found to be a really shoplot auditors.
Read these articles for evidence:
1. KPMG resolves legal claims after failing to detect fraud at Chinese group
2. VBS liquidator sues KPMG SA for R863m after it signed off on fraudulent financials
3. Big Four bean-counter KPMG accused of lying to the watchdog about audit of Carillion made nine months before the construction firm collapsed
4. KPMG Be In Hot Soup Again After Caught In Systematic Exam Cheating
Now this is what Big 4 Accounting Firm really mean

KPMG Be In Hot Soup Again After Caught In Systematic Exam Cheating

By Depakatalah

The US audit watchdog last week has fined KPMG Australia $US450,000 ($615,000) over “widespread” cheating on tests designed to ensure partners and staff act with integrity and have the relevant skills for their work.

More than 1100 KPMG partners and staff “were involved in improper answer sharing when taking training tests” where they either received or shared answers between “at least 2016 to early 2020″, according to a decision published overnight by the Public Company Accounting Oversight Board (PCAOB). Read here.

However, Chartered Accountants Australia And New Zealand (CA ANZ) members have accused the professional body of allowing KPMG Australia partners and staff to get away with systemic exam cheating because of the big four firm’s size and influence.

They say the CA ANZ has refused to take disciplinary action against the firm despite the US regulator doing so because it is so reliant on KPMG’s funding and due to the sway the firm has over its leadership. Read here.

This no-action taken by CA ANZ is not a surprise as CA ANZ receives funding from auditing firms such as KPMG and has a KPMG partner on its board. It is the primary regulator of its members in Australia.

All over the world, the big four accounting firms i.e. KPMG, Deloitte, EY and PwC are effectively a “protected species” as far as regulatory bodies are concerned.

Even though cheating on exams points to a lack of integrity which is a fundamental requirement for the accounting profession, the CA ANZ body is “turning a blind eye” maybe because they don’t want to offend a big player.

For the record, KPMG Malaysia is under purview due to KPMG has agreed to a settlement valued at RM333 million (US$80 million) to resolve all claims related to its fiduciary duties on auditing of 1Malaysia Development Bhd (1MDB) accounts for the period of 2010 to 2012.

In addition, KPMG Malaysia is also sued RM4 billion by their former client, Serba Dinamik Holdings Berhad in the relation to the lost and damages announced in the Bursa Malaysia, here.

Till todate, no concrete action is taken against KMPG by the Malaysian regulatory bodies for their negligence and breaching contractual and statutory duties. Maybe because KPMG is one of the big four accounting firms?

Jangan biar duit rakyat bayar “wang penyelesaian” KPMG

Oleh Qdees

KPMG minggu lalu bersetuju membayar kerajaan Malaysia RM333 juta walaupun sebelum ini berkata ia “akan bersungguh-sungguh melawan” saman terhadapnya berhubung isu 1MDB.

Penyelesaian saman itu menghampakan di atas dua sebab:

Pertama, jumlah yang diperolehi kerajaan Malaysia jauh lebih rendah daripada AS$5.6 bilion yang dituntut dan;

Kedua, kita tidak dapat menyaksikan kes ini dibicara di mahkamah terbuka ataupun sekadar membaca kenyataan pembelaan yang mungkin mendedahkan tindak-tanduk pegawai 1MDB sebelum ini dan juga mendedahkan sikap firma audit itu terhadap sebarang kepincangan yang mungkin ditemuinya dalam penyata kewangan 1MDB.

Maknanya, besar kemungkinan akan berlakulah lagi kes seumpama ini pada masa depan sebab tidak ada apa-apa yang kita dapat pelajari daripadanya berikutan semua butir ditanam dengan penyelesaian yang tidak seberapa itu.

Oleh kerana tidak diteruskan saman ini, tidak ada apa-apalah yang dapat dijadikan sempadan daripadanya.

Sampai sekarang regulator yang memantau kerja-kerja audit dan juruaudit, Audit Oversight Board (AOB) di bawah Suruhanjaya Sekuriti masih berdiam seribu bahasa.

Apakah mereka sudah bersedia tutup buku untuk KPMG dan 44 rakan kongsi yang terbabit, walaupun firma audit itu menandatangani penyata kewangan 1MDB daripada 2010 hingga 2012?

Sudah seminggu berlalu kita masih menanti kenyataan regulator ini.

“Diam belum tentu menyelesaikan masalah, tapi setidaknya tidak membesarkan masalah”
-sikap yang sudah tentu akhirnya merugikan negara.

Apa yang kita boleh harap sekarang ialah GLCs dan syarikat milik negara seperti Petronas tidak lagi mengupah KPMG sebagai juruaudit mereka.

Apa yang kita lihat, jika KPMG masih lagi bertindak sebagai juruaudit, upah atau fee yang dibayar GLC dan syarikat milik kerajaan ini kepada KPMG yang sudah tentu berjumlah berjuta ringgit, akhirnya menyumbang kepada penyelesaian RM333 juta kepada Kementerian Kewangan.

Pi Mai Pi Mai tang tu jugalah…seperti biasa rakyat jugalah yang bayar bagi pihak KPMG.

Kerajaan Malaysia, Menteri Kewangan (Diperbadankan), 1Malaysia Development Berhad (1MDB) dan empat anak syarikatnya, memfailkan saman terhadap 44 rakan kongsi firma perakaunan KPMG bagi menuntut US$5.6 bilion, atas dakwaan melanggar kontrak dan cuai dalam pengauditan penyata kewangan 1MDB bagi tahun 2010 hingga 2012.

KPMG admitted to breach and negligence

by Anotherbrickinwall

Still in hot soup for false and misleading report to the UK’s Financial Reporting Council in the Carillion affair, KPMG came to a settlement on the 1MDB civil lawsuit against them and the 44 partners.

1MDB sued KPMG and the partners for US$5.64 billion. The latest news reported they came to a settlement with 1MDB at US$80 million equivalent to RM333 million.
Ministry of Finance issued a media statement yesterday, as follows:

Back in July, Reuters reported KPMG denied the alleged breaches and negligent. In an e-mail then, KPMG said, “All allegations as reported in the news are refuted and the claim will be vigorously contested.” 

Now that they have thrown the towel to agree to pay, will Securities Commission’s Audit Oversight Board act to this admittance of guilt?

Will AOB investigate and act against KPMG in the same manner they acted firmly against audit firm, Afrizan Tarmili Khairul Azhar (AFTAAS) for non-compliance?

In court, SC is appealing to the High Court for granting the judicial review application by AFTAAS in August last year. AFTAAS countersued AOB for RM35 million. 

SC, Bursa Malaysia, Minority Shareholders Watchdog Group and other professional advocate groups had been leaning against Serba Dinamik Berhad to seemingly favour KPMG.

Will there be a change in attitude on the issue raised by KPMG against Serbadk towards a more fair and objective assessment in view of another indiscretion by KPMG globally?

Bear in mind that one of KPMG partner sued by 1MDB is a former independent Director and former Chairman of Audit Committee of Serbadk whose also facing investigation for criminal intimidation made against CEO Dato Seri Abdul Karim Abdullah.

KPMG had picked up on few pecularities of Serbadk account but without due process, made serious allegations against Serbadk in reports made to Bursa and police which got leaked to the market.

It resulted in RM4.5 billion of Serbadk’s market capitalisation wiped out with suspiciously strange portfolio adjustment by EPF and KWAP.

When 1MDB announced its lawsuit of KPMG, MP for Damansara Utara, Tony Pua called for government to withdraw audit work given to the firm. 

Bloggers had called on Petronas to terminate KPMG but there is no basis to do so then. KPMG claimed to have cautioned 1MDB management.

Now that they admitted to the alleged breach and negligent, there is basis for Petronas, other GLCs, state and federal government to firmly consider terminating the firm whose integrity is deemed questionable.

Give local audit firm a chance. Big four proved to be not of higher integrity. 

Kenapa KWSP Masih Memegang Saham Serba Dinamik ?

By Depakatalah

Setakat penghujung Mei 2021, 5 pemegang saham Serba Dinamik Holdings Berhad (Serba Dinamik) terbesar adalah pengasas, Ketua Pegawai Eksekutif dan Pengarah Urusan Kumpulan, Datuk Dr Mohd Abdul Karim Abdullah (26.93%), Pengarah Bukan Eksekutif dan Bukan Bebas, Datuk Abdul Kadier Sahib (15.96%), Kumpulan Wang Simpanan Pekerja – KWSP (10.157%), Kumpulan Wang Amanah Pencen – KWAP (5.263%) dan Setiausaha Perbendaharaan Kerajaan Sarawak  (4.11%).

Namun, 5 pemegang saham terbesar pada September 10, 2021 terdiri daripada Datuk Dr Mohd Abdul Karim Abdullah (20.9%), Datuk Abdul Kadier Sahib (16.18%), KWSP (4.97%), KWAP (4.53%) dan Permodalan Nasional Berhad (4.34%).

KWSP menjual 955,200 saham miliknya dalam kumpulan itu di pasaran terbuka pada 2 dan 3 Jun lalu dan melupuskan lagi 481,000 saham dalam Serba Dinamik Holdings Bhd pada 4 Jun 2021.

Kenapa KWSP dan KWAP masih memegang dan menyimpan saham Serba Dinamik sedangkan mereka telah melakukan penjualan stok panik secara besar-besaran sejak awal Jun 2021? 

Adakah KWSP dan KWAP terpengaruh dengan dakwaan salah laku seperti yang didakwa oleh belas juruaudit luar, KPMG PLT?

Adakah penjualan ini kerana saham Serba Dinamik tidak berkualiti, tidak bermutu dan tidak menguntungkan? Kalau ya, kenapa tidak dijual keseluruhan saham syarikat berkenaan kononnya untuk meminimakan kerugian (cut loss)?

Atau adakah tangan-tangan ghaib yang cuba untuk membuatkan pemilik Serba Dinamik, Abdul Karim untuk melepaskan pegangan saham syarikat milikya?

Pelik tapi  benar.

IF SERBADK IS A SHITTY STOCK, WHY EPF, AND KWAP STILL AROUND?

Extract from Nuclearmanbursa

Minority Shareholders Watchdog Group (MSWG) says Minority shareholders may look to EPF and KWAP for truth of Serba Dinamik’s financials

It was reported in Edge Online dated May 29^th:

https://www.theedgemarkets.com/article/minority-shareholders-may-look-epf-and-kwap-truth-serba-dinamiks-financials

Let us take the MSWG word for what it is and follow their ADVICE. 

So what did the operators at EPF and KWAP do, with EPF being the most vocal of the lot that it earned the nick name Pak Pandir.

Apakah Ada Watak Pak Pandir Sebagai Fund Manager Di KWSP?

I have long argued  that the EPF is NO PAK PANDIR in instead the fund is one heck of a Smooth Operator.

http://nuclearmanbursa.blogspot.com/2021/09/the-story-of-serba-dinamik-is-being_9.html

No place for beginners or sensitive hearts

When sentiment is left to chance

No place to be ending but somewhere to start

No need to ask

He’s a smooth operator

Smooth operator

Smooth operator

Smooth operator

And WHY would I say such a thing?  Well the DEVIL is always in the DETAIL. Focus Malaysia has the details, but  FAILED to spot the DEVIL.

Do tell me If Serba Dinamik is such a shit of a Stock (AND DONT CONFUSE THE MARGIN CALL WITH THE AUDIT ISSUE), WHAT IS EPF AND KWAP STILL DOING IN SERBA DINAMIK, WHEN EPF MADE A HOLLYWOOD MOVIE LIKE STANCE ON EXITING SERBA DINAMIK?

WHY is OUR EPF  money still there after EPF’s big show on exiting?   Is it because the audit issues are minuet and there is NOTHING fundamentally  wrong with the COMPANY ?

 Instead, there are hidden hands bent on pushing down Serba Dinamik shares to force Mohd Abdul Karim Abdullah hand into submission?

If I am TELLING TALES,  then WHAT IS THIS?

Read Focus Malaysia: Employees Provident Fund (4.97%), the Retirement Fund (Inc) (4.53%) in Serba Dinamik

Will Serba’s major shareholders ever consider taking company private?

NEXT :  They stab it with their steely knives to : Shock The Monkey

http://nuclearmanbursa.blogspot.com/2021/09/the-story-of-serba-dinamik-is-being_12.html