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.

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