Serba Dinamik sues EY, seeks to stop it from sharing findings

KUCHING: Serba Dinamik Holdings Bhd (Serba Dinamik) has initiated another legal action, this time against accounting firm EY whom it appointed in July to undertake a special independent review on the company’s financials.

In a filing to Bursa Malaysia, Serba Dinamik said it has filed an originating summons against EY Consulting and is seeking to restrain the auditor from sharing any findings or opinions on the company.

The Sarawak-based firm is seeking a declaration that EY Consulting has misrepresented that it could be appointed to conduct the review, following a directive by Bursa Malaysia, and that its appointment was void ab initio or has no legal effect from the start.

This, it claimed, is because EY Consulting is not registered with the Audit Oversight Board and so is not an auditor “within the meaning of the Main Market Listing Requirement”, and it is seeking a court declaration as such. Serba Dinamik also contended that EY Consulting “lacked independence” as its affiliate serves as Bursa Malaysia’s auditor.

“EY Consulting had acted contrary to its undertakings in the letter of engagement when it provided a “Factual Finding Update” to the Securities Commission without seeking Serba Dinamik’s consent,” it said in the filing.

“EY Consulting expected Serba Dinamik to seek its consent to release the ‘Factual Finding Update’ when it was not an auditor, it did not subject itself to any professional standards in the performance of its work and it disclaimed responsibility for its work,” it added.